When you trade cryptocurrencies with Axi, you’re not investing directly into the product. Instead, you’re simply trading on the realtime price movements in the market, meaning you’re able to profit whether the price goes up or down. This type is known as CFD (Contract For Difference) trading.
Let’s say you enter into a Bitcoin CFD contract at a current market price of US$8,035, believing the market price will rise by a certain time. If the price of Bitcoin has risen at the expiry of the contract, you’ll make a profit based on the difference between the buy and sell price.
However, if it falls below the buy price at the point when the contract expires, you’ll lose the trade.
Let’s again say you want to buy a Bitcoin CFD contract at US$8,035, but this time believe the market price will fall. If it did fall by the time of the contract expiry, you’d make a profit. If it rose, you’d incur a loss.
Profiting from downward price movements is one of the unique aspects of CFD trading; if you were purchasing a physical asset, such as gold, you could only profit by selling for a higher price than that which you paid.
Get the advantages of Bitcoin’s high volatility without the need for a digital wallet, no requirement to purchase physical Bitcoins and without the risk of digital currency theft.
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Trade up to 10 times more Bitcoin than your initial investment.
Unlike physical Bitcoin purchases which carry a 10% GST fee, Bitcoin trading comes with a tax exemption (Australian residents only).
Because Bitcoin it is not a centralised currency controlled by a single bank or dominated by interbank dealers, the Bitcoin market moves quickly with retail demand and can be subject to significant price swings. And you don’t need to own any Bitcoins to profit from it - all you need to do is trade on the price movements, meaning you have the potential to profit from either direction.