Spread Betting Review

SPREAD BETTING ONCryptocurrency Comparison

Compare The Top UK Spread Betting Brokers Offering Trading On Bitcoin, Ethereum & More - 2018!

BrokerCryptocurrency AssetsSpreads FromMin. DepositMarginMax. LeverageHighlightsStart Trading
InterTrader Spread Betting on Cryptocurrency
  • Bitcoin
  • Ethereum
2 points£10050%2:1
  • 100% market neutral, No Dealing Desk
  • Assisting in setting up or switching your account
  • Tight dealing spreads
  • Funds are protected by InterTrader's parental guarantee
  • Spread Betting & CFDs carry risk. 64-72% of traders lose with this provider.

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AvaTrade Spread Betting on Cryptocurrency
  • Bitcoin
  • Ethereum
  • Ripple
  • Dash
  • Litecoin
  • Monero
  • NEO
US$20£10020%20:1
  • An educational website
  • Multilingual customer service
  • Funds are held in segregated accounts
  • Low spreads

Spread Betting & CFDs carry risk

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Markets.com on Cryptocurrency
  • Bitcoin
2 pips$10020%1:1
  • Leveraged Trading
  • Bitcoin Futures
  • Live Webinars
  • Free Demo Account

Spread Betting & CFDs carry risk. 73% of traders lose with this provider.

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Easymarkets Cryptocurrency
  • Bitcoin
  • Ethereum
  • Ripple
US$0.008$10020%1:20
  • Risk Management Tools
  • Fully decentralized blockchain
  • Free Bitcoin E-book

Spread Betting & CFDs carry risk.

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City Index Spread Betting on Cryptocurrency
  • Bitcoin
10p£10025%20:2
  • Free trading e-book
  • Award-winning platform
  • Funds are held in segregated accounts
  • Low spreads
  • Risk management tools

Spread Betting & CFDs carry risk. 72% of traders lose with this provider.

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ETX Capital Spread Betting on Cryptocurrency
  • Bitcoin
  • Ethereum
  • Ripple
  • Bitcoin Cash
  • Litecoin
US$50£10020%2:1
  • Funds are held in segregated accounts
  • Professional Clients Service
  • 8 hour trading course for depositing over $1,000
  • Multilingual customer service
  • Award-winning trading platforms

Spread Betting & CFDs carry risk. 79.6% of traders lose with this provider.

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Plus 500 Spread Betting on Cryptocurrency
  • Bitcoin
  • Ethereum
  • Ripple
  • IOTA
  • Litecoin
Variable£100Dynamic1:30
  • Risk management trading tools
  • Money is held in segregated accounts

CFD Service. 80.6% lose money

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What are Cryptocurrencies?

Cryptocurrencies are digital currencies. They exist only on the Internet, on a blockchain ledger. There are currently over 1,300 cryptocurrencies on the market, with the most notable ones being Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Dash, and Ripple. Cryptocurrencies are intangible digital assets that are ‘mined’ on a decentralized blockchain network. Each blockchain has its own digital currency.

 

Why Spread Bet on Cryptocurrencies?

Cryptocurrencies run on an Internet network comprised of decentralized nodes. With no central points of failure, digital currency blockchain networks are limited by the processing capacity of miners on the network. If there is too much activity on a cryptocurrency blockchain network such as Ethereum, Bitcoin, Litecoin, or Ripple, this can make the trading platform unstable. Spread betting is a derivatives trading alternative to purchasing digital currency.

Cryptocurrency trading is a highly volatile market and is subject to wild price fluctuations at a moment’s notice. Once you decide to spread bet on cryptocurrency, you can buy/sell the price of the underlying financial instrument such as Ether or Bitcoin. It is always best to pick low-margin rates and tight spreads with your spread betting cryptocurrency broker. You don’t need to own the underlying asset to trade its price movements, and profits can be generated in either direction.

 

How to Spread Bet on Cryptocurrencies?

The practice of spread betting has gained in popularity across the UK, and Continental Europe. It is inherently volatile, and risky, given that hard forks can occur at any time, and cryptocurrencies can be discontinued at a moment’s notice. No dealing desk providers base their prices of digital currency like Ether, Bitcoin, or Ripple on market prices. The most important concepts to understand in spread betting include the spread, the trading hours, the minimum/maximum trade size, the unit, and point movements. Margin can range from as little as 2% to as high as 20%, depending on the trading broker, and the cryptocurrency in question.

The margin is the amount of money that you need in your account to open a position with cryptocurrency (20% margin means that a £1,000 trade requires £200 in cash), and the leverage indicates how much more you can purchase with your money. Leverage of 20:1 means that you can open a position 20 times the size of your cash holdings. Remember that cryptocurrency market hours will vary from one broker to the next, and the daily spread will also vary on the specific type of digital currency that you have chosen to trade.

 

What are the Differences in Trading between the Various Cryptocurrencies?

Each cryptocurrency spread betting broker offers different cryptocurrencies. These typically include Bitcoin, Bitcoin Cash, and Ethereum. The daily spread on popular cryptocurrencies like Bitcoin can vary wildly from one broker to the next. For example, City Index may offer a spread of 50 pips with a leverage of 1:4+, while ETX Capital offers 20 pips with a leverage of 1:20+, and IG offers 60 pips on Bitcoin with a leverage of 1:33.

Another area of difference between trading these cryptocurrencies is the market hours. Some companies will trade from Saturday through Friday from 8 AM through 10 PM, while others will trade from Sunday through Friday from 10:05 PM through 9:57 PM, or from Sunday through Friday 10 PM through 10 PM. Here are some of the differences between the cryptocurrencies, which may affect the way that they are traded by informed investors:

  • Ethereum is used for smart contracts and is ideally suited to real-world projects and widespread adoption.
  • Bitcoin was intended as a peer to peer form of payment to replace cash. However, Bitcoin transactions are extremely slow and can take approximately 5 hours for transactions to process.
  • Litecoin and Ripple are intended to replace cash and be used for cross-border transactions.

It’s important to understand the differences between these different cryptocurrencies so that they can be traded more efficiently. Each one is inherently unique in its application and purpose.

 

How to Choose a Spread Betting Company for Cryptocurrencies Trading?

Given that cryptocurrencies are a relatively new phenomenon in the broader scheme of things, it’s important to take care when choosing a spread betting company for cryptocurrency trading. Many fly-by-night operators have attempted to lure customers in with promises of big profits, trying to ride the cryptocurrency bubble. Remember: what comes up must come down, and spread betting companies promising guaranteed profits are to be avoided at all times.

Rather, stick with an industry-leading spread betting company. In the UK, this means that FCA licensing and regulation is sacrosanct. The reputation, credibility, and reliability of the spread betting brokerage are equally important. Low-margin, manageable leverage, and maximum access to the financial markets are added extras. Be advised that margin and leverage can result in tremendous profits, or substantial losses – depending on which way the markets move.

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Intertrader ETX Capital Core Spreads
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