Risks of Trading Crypto CFDs

Trading cryptocurrency CFDs gives you access to an exciting and fast-moving market — but it also comes with risks. It’s important to understand these before you start trading.

Key Things to Know

Volatility

• Crypto prices can rise or fall sharply in a matter of minutes
• Big swings create opportunities, but they can also mean sudden losses

Leverage

• With CFDs you trade using margin, so you only put down part of the total value
• This increases both potential profits and potential losses

24/7 Markets

• Cryptocurrencies trade around the clock
• Prices can move at any time, even when you’re not online

Market Liquidity

• Major coins like Bitcoin and Ethereum usually have plenty of buyers and sellers
• Smaller coins may have less liquidity, which can make trading more costly or harder to exit

Regulation and News

• Government announcements, regulation changes, or headlines can cause prices to move suddenly

Technology

• Trading platforms rely on internet connections and systems that can be disrupted
• Cybersecurity and technical risks are always a factor in digital markets

Important to Remember

• With crypto CFDs you do not own the underlying cryptocurrency. You are only speculating on price movements
• Because of leverage and volatility, you can lose more than your initial deposit
• Crypto CFDs are not suitable for everyone.

Risk Disclaimer: Crypto CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how these products work, and whether you can afford to take the high risk of losing your money.