Ethereum and Bitcoin tokens

Maybe you are a bit sceptical about investing in cryptocurrencies such as Ethereum and Bitcoin. According to a recent ayondo survey, 46% of people (almost one out of two) don’t trust cryptocurrencies. 35% are concerned about buying cryptos directly from the marketplace for risk of fraud.

There has been significant volatility in the prices of cryptocurrencies, particularly with Bitcoin and Ethereum. This trend shows no signs of changing anytime soon.

Rather than buying and owning the underlying asset, there is the option to trade Bitcoin and Ether (Ethereum) as a spread bet or CFD (contract for difference) through platforms such as ayondo.

Quick Definitions

Both Bitcoin and Ethereum are blockchain-based and run off a global decentralised network of computers. Although similar, Bitcoin and Ethereum do not share the same purpose.

The Bitcoin blockchain serves as a database of accounts that stores amounts of the currency. In contrast, Ethereum is able to store and execute applications rather than being only a method of payment. As of writing, Bitcoin had a market cap of $148.0 billion and Ethereum a market cap of $66.2 billion.

Below are three advantages to trading these cryptocurrencies as a CFD/spread bet as compared to traditional methods:

1. It’s easier to get started

Many cryptocurrency exchanges have shut down new registrations due to high user demand. With a CFD and spread bet, you can quickly and easily get started without needing to learn everything about blockchain technology or having to buy the cryptocurrency directly.

2. Opportunity to make returns no matter the market direction

Investing in either Bitcoin or Ethereum is highly speculative. For example, in December 2017, Bitcoin’s price hit an all-time high at almost $20,000, but recently dropped below $10,000. However, no matter the market direction of the currency, you can participate in falling or rising prices with spread betting and CFD trading if you correctly predict the movement of the markets.

3. Your money is safe from cryptocurrency hackers

As with any digital currency, there is the possibility of hackers getting into the system. Although both the Bitcoin and Ethereum platforms are encrypted, it is sometimes difficult to stop sophisticated hacks.  

For example, in December 2017, $64 million in bitcoin was stolen by hackers who broke into Slovenian Bitcoin mining marketplace NiceHash. In July 2017, an unknown hacker stole $34 million in Ethereum after a breach with a Parity wallet (Parity is a smart contract coding company).

Trading cryptocurrencies as a CFD/spread bet with ayondo means that you are investing your money with a UK-based broker.

The Bottom Line

If you are wary about purchasing cryptocurrencies directly, spread betting and CFD trading offers an alternative for investing in Bitcoin and Ethereum. You can get started with spread betting and CFD trading through ayondo’s trading platform. In addition, if you don’t feel confident enough yet to trade alone, you can gain exposure with Bitcoin and Ethereum by becoming a Follower with ayondo and follow Top Traders who trade the currencies as a CFD/spread bet.   

Trade Bitcoin & Ethereum at ayondo today

Your capital is at risk.


The above-mentioned market views and content reflect only the opinion of the author, not that of ayondo. This service is for informational purposes only and does not constitute advice or investment advice.


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