Buying bitcoin through an exchange

Buying bitcoin through an exchange is mainly for those who use a buy-and-hold bitcoin strategy. This is because buying through an exchange means that you’re taking direct ownership of bitcoin – with the expectation that its price will rise.

That said, there are some problems with buying bitcoin through an exchange:

  • Bitcoin exchanges often lack proper regulation and the infrastructure needed to respond quickly to support requests
  • The matching engines and servers on bitcoin exchanges are often unreliable, which can result in the suspension of markets or reduced execution accuracy
  • Bitcoin exchanges often impose fees and restrictions on funding and withdrawing from your exchange account, while accounts themselves can take days to open

Trading bitcoin derivatives

Trading bitcoin derivatives with us means that instead of owning bitcoin outright, you’ll be speculating on its price with CFDs. As a result, you’ll be able to take a position on bitcoin’s price rising by ‘going long’ or falling by ‘going short’. Here are other benefits of trading bitcoin derivatives with us:

  • Leverage and margin: CFDs are always traded with leverage, which means you’ll only have to put up a deposit – known as margin – to get full market exposure
  • Deep liquidity: thanks to our large client base, our bitcoin market is very liquid. This means you’re more likely to have your orders filled at your desired price – even if you deal in large sizes
  • Hedging: shorting with derivatives can be an effective way to hedge your portfolio and protect against market declines

The table below highlights the main benefits of CFD trading.

CFD trading
Main benefitsAbility to go long or short and is useful for hedging
Accessible toAll clients
Traded inContracts worth one bitcoin
PlatformsWeb platform, mobile trading app and MT4