What are cryptocurrencies?

Cryptocurrencies are virtual currencies that operate independently of commercial and central banks or governments. In spite of this, they can be exchanged and traders can speculate on changes in their exchange rates, just like with any traditional physical currency.

Clients of Purple Trading now have the opportunity to trade CFDs of four most prominent cryptocurrencies: Bitcoin, Litecoin, Ethereum, and Bitcoin Cash.

Difference between trading on cryptocurrency exchanges and cryptocurrency CFD trading?

Cryptocurrency exchanges

You buy cryptocurrencies directly through an exchange and therefore own them.

You can either hold the cryptocurrencies on the exchange, or put them in your own virtual or physical wallet.
In the event of cryptocurrency sell-offs, you will have to send the cryptocurrency from your wallet back to the exchange and wait for the counterparty.
In the event of a cryptocurrency hard fork, you are also entitled to the new version.
There have been few instances in which the cryptocurrency exchanges were hacked and users lost their cryptocurrency savings stored there. Possibility of a wallet being hacked itself also exists.
Only a handful of small exchanges are regulated in the EU. The rest are often unregulated or operate in tax havens.
On most cryptocurrency exchanges, it is not possible to go short on cryptocurrency price.
On exchanges, you can even buy small fractions of a cryptocurrency. This can be even in the range of several decimal points easily. Most of the time, however, you can’t use financial leverage.
Trading on exchanges is cheaper and you do not pay charges for holding the cryptocurrency on the exchange or in a wallet.
If you anticipate long-term growth of a cryptocurrency, you can keep it on a stock exchange or in a wallet for as long as you like.

Cryptocurrency CFD trading with Purple Trading

You buy cryptocurrencies virtually without owning them.
You don’t own the cryptocurrencies, so you don’t need to worry about this.
You can trade any time anywhere (as long as you have the internet connection).
With a cryptocurrency CFD, you don’t receive a new version of the cryptocurrency after a hard fork.
Purple Trading is an EU Brokerage firm that cooperates with EU regulated Investments Firms for the execution of orders.
With a cryptocurrency CFD, you can speculate on both rises and falls of cryptocurrency price.
The minimum size of a trade with a cryptocurrency CFD at Purple Trading is 0.01 lots, or a hundredth of a contract.
Compared to the exchanges, CFD trading is more expensive and you have to pay fees for keeping your trading positions open overnight as well, this is called swap.
At Purple Trading, cryptocurrency CFDs always expire on Friday evening, so you can never stay in one position for more than 5 days.
Positions on CFD crypto can be held over the weekend. However, you should bear in mind that during that time, the market is closed. This means that your active positions cannot be closed or modified in any way during the weekend as trading will not be possible until every Sunday evening when the market reopens. For more information see our trading hours.

Available cryptocurrency CFDs

	BTCUSD	LTCUSd	ETHUSD	BCHUSD
Financial leverage	1:1	1:1	1:1	1:1
Contract size	1 lot = 1 Bitcoin	1 lot = 1 Litecoin	1 lot = 1 Ether	1 Bitcoin Cash
Minimum lot size	0.01 lot	0.01 lot	0.01 lot	0.01 lot
Spreads/commissions	0.5 USD + 0.12 %	0.005 USD + 0.12 %	0.01 USD + 0.12 % commission	0.5 USD + 0.12 %
Trading hours	24/5	24/5	24/5	24/5
Expiration of open positions	None	None	None	None

Trade the most popular crypocurrencies!

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