The Cash Diaries

My experiments investing and copytrading

How to invest in Bitcoin CFDs

The price of bitcoin is currently surging.  So now may be the perfect time to get started investing in Bitcoin.  And the best way to make money in Bitcoin is through CFDs.

A CFD allows you to trade the underlying asset (in this case bitcoin) without having to actually take delivery of it.  And here is why I think that it’s much easier to invest with a CFD as opposed to actually buying bitcoin:

The Advantages of Bitcoin CFds

Bitcoin can be tricky to get into.  You have to sign up with an exchange and hope that they aren’t dodgy and won’t suddenly shut down (like many many have) and run away with your money.  There are also often lots of fees depending on which payment method you use to exchange.  And then you need to actually store the bitcoin somewhere.  And unless you print them out and lock them in a safe, you’re always going to be exposed to hackers or run the risk of simply forgetting an encryption password.

Using a platform like etoro is simple, you register, deposit, and you’re ready to go.  But probably the biggest advantage is that you can make a profit whether the price goes up or down.  i.e you can both buy and sell (go long or short).  This is useful if you think that bitcoin isn’t going to keep surging and there will be a downside.

Getting Practice using eToro

If you’re not familiar with the volatile nature of bitcoin then I definitely recommend starting with with a practice trading account.  You’ll be able to trade with some practice credits just as if it was real money.    This way you can get to grips with some of the basics of trading before actually committing to an investment.

Getting Bonus Credits to Trade on Bitcoin

Make sure if you’re planning to invest in bitcoin using etoro, you take advantage of the various deposit bonuses that will give you extra etoro credits (up to $2000!) to trade.

Getting Started

Getting started investing is easy with etoro.  Creating an account is free, and then you can either practice trade or trade with a real account.

Which direction do you think Bitcoin is heading?  Do you think it will continue to rise or will it fall?  And would you be willing to invest in it…. Let me know in the comments.


2 Comments

  1. I would like to buy Ripple for the long-term (up to a year perhaps) using etoro as I believe that the value of Ripple will continue to rise. Lets say that around 7 months after I purchased Ripple has made a profit of $10,000 for me and so I decide to sell to realise that profit. Will etoro allow me to have that ‘open position’ for that length of time (i.e. up to 1 year)? Or will etoro automatically ‘close’ the position shortly after I have purchased Ripple? I don’t want the hassle of ‘wallets’, etc to store coins and I don’t want to actually buy the coins. I realise therefore I won’t own the coins but thats okay. Also I realise etoro will charge fees. But if I make an excellent profit from Ripple I’m not concerned about the fees as I would be still in front. Thank you for your help.

    • Matty

      December 26, 2017 at 8:14 am

      Yes the position should remain open without any issues. I’ve noticed a few traders on eToro who have long positions open for many months at a time

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