Bitcoin CFD and Futures Trading

What are Bitcoin futures?

Investors can place bets on the future value of the currency through financial instruments known as "Bitcoin futures". These derivative instruments enable traders to take positions on the anticipated movement of Bitcoin's price without actually owning it. Here are some key features of Bitcoin futures that make them attractive to investors:

• 1

  Bitcoin futures allow investors to make speculative bets on the future price of Bitcoin, regardless of whether they believe it will rise or fall

• 2

  Bitcoin futures often offer leverage, enabling traders to control larger positions with a smaller initial investment, potentially amplifying gains (but also increasing the risk of losses)

• 3

  They are traded on regulated exchanges, providing transparency and price discovery, reflecting market sentiment and expectations

• 4

  Risk Management Bitcoin futures enable investors to hedge their Bitcoin holdings by taking opposite positions, reducing overall risk in their portfolio

What are Bitcoin CFDs?

Without actually owning any Bitcoin, traders can forecast changes in its price with the aid of financial instruments known as Bitcoin CFDs. CFDs are derivative products that track changes in the value of an underlying asset; in this case, that underlying asset is Bitcoin. Here are the main features of Bitcoin CFDs:

• 1

  Bitcoin CFDs allow traders to profit from both rising and falling Bitcoin prices by buying or selling

• 2

  Traders can speculate on Bitcoin's price movements without needing to invest in the actual cryptocurrency

• 3

  Bitcoin CFDs often offer leverage, enabling traders to control larger positions with a smaller amount of capital, potentially magnifying profits (and losses)

• 4

  CFDs offer risk management tools like stop-loss and take-profit orders to help limit losses and secure profits

• 5

  Bitcoin CFDs can be traded on user-friendly online platforms provided by reputable brokers, offering real-time data and analysis tools for informed decision-making

List of the 4 Best Bitcoin CFD Brokers

Discovering the right broker is essential for successful Bitcoin CFD trading, and to help you in your search, here is a list of the 5 best CFD brokers, according to Traders Union experts.

Exness

Exness Review

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Your capital is at risk.
You can lose your money.

With a focus on providing a transparent trading environment, Exness Broker allows traders to engage in Bitcoin CFD trading with competitive leverage options and tight spreads, ensuring cost-effective and commission-free trading on Bitcoin CFDs. Exness, a trusted broker that operates globally, offers traders reliable customer support and efficient trade execution.

Exness is accredited and governed by reputable organisations like the UK's Financial Conduct Authority (FCA) and the Cyprus Securities and Exchange Commission (CySEC). Different account types are available to cater to traders' varying needs, and with a low minimum deposit requirement of $1, it becomes accessible to traders at different budget levels.

IC Markets

IC Markets Review

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Your capital is at risk.
Up to 75.93% of the broker’s non-professional clients incur losses when trading CFDs.

Traders can benefit from IC Markets' competitive trading conditions, including Bitcoin CFD trading with high-leverage options and tight spreads. The broker’s low trade commissions guarantee clients cost-effective trading. Meanwhile, the minimum deposit requirement to open an account with IC Markets starts at $200, accommodating various trading budgets. Traders can seamlessly execute their Bitcoin CFD trades using a variety of trading platforms, such as MetaTrader 4
and 5.

The Australian Securities and Investments Commission (ASIC) is in charge of regulating IC Markets, which is renowned for its strict regulatory requirements and transparency. With a commitment to customer satisfaction, fast trade execution, and deep liquidity, IC Markets is a reliable choice for traders seeking exposure to Bitcoin CFDs.

Tickmill

Tickmill Review

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With tight spreads, flexible leverage, and commission-free trading, Tickmill provides a cost-effective solution for speculating on Bitcoin's price movements. Traders can take advantage of Tickmill's competitive trading conditions, including Bitcoin CFD trading. With a comprehensive research and analysis section, Tickmill equips traders with valuable market insights and educational resources to enhance their trading strategies.

As a trusted and regulated broker, Tickmill operates under the oversight of reputable authorities such as the Financial Conduct Authority (FCA) and the Cyprus Securities and Exchange Commission (CySEC). Tickmill also offers a range of account types to cater to different trading needs, and the minimum deposit requirement starts as low as $100. The broker emphasises customer satisfaction by providing responsive customer support and a transparent trading environment.

Admiral Markets

Admirals Review

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Your capital is at risk.

Admirals Markets has established a solid reputation in the industry, offering a reliable option for Bitcoin CFD trading. The broker offers commission-free trading on Bitcoin CFDs, ensuring transparent pricing for traders. The Financial Conduct Authority (FCA) and the Australian Securities and Investments Commission (ASIC) oversee Admiral Markets, a reputable broker. Traders can engage in Bitcoin CFD trading with competitive spreads and high-leverage options. The minimum deposit requirement varies depending on the account type, starting at $200, allowing flexibility for traders with different budget levels.

The broker provides a range of trading platforms to suit individual preferences, ensuring a seamless trading experience. With a commitment to technological innovation and user-friendly interfaces, Admiral Markets prioritises client satisfaction. In order to stay informed and make wise trading decisions, traders can also profit from a wide variety of educational resources and market analysis tools.

Bitcoin CFDs vs Futures: Key Differences Explained

Is Bitcoin CFD and Futures Trading Legal?

The legality of Bitcoin CFD and futures trading varies depending on the country due to the decentralised nature of cryptocurrencies. Different governments worldwide have taken varying approaches to regulating and overseeing these digital assets. Some countries have embraced cryptocurrencies and established clear regulations, while others have implemented restrictions or outright bans. The main purpose of these regulatory frameworks is to ensure transparency, protect users, and prevent illegal activities. Traders should conduct thorough research and seek legal advice to understand the specific legality and compliance requirements in their jurisdiction

Are Bitcoin futures and CFDs risky?

Yes, Bitcoin futures and CFDs carry inherent risks that traders should be aware of. Bitcoin futures and CFDs often offer high leverage, which can amplify both potential profits and losses. Also traders should take into account Bitcoin's price is extremely prone to volatility, which causes large price swings that can bring about significant gains or losses. The cryptocurrency market is still evolving, and factors such as regulatory changes, technological advancements, and market sentiment can introduce uncertainty and impact Bitcoin's value.

Methodology for compiling our ratings of crypto exchanges

Traders Union applies a rigorous methodology to evaluate crypto exchanges using over 100 quantitative and qualitative criteria. Multiple parameters are given individual scores that feed into an overall rating.

Key aspects of the assessment include: