Profit in either market direction
Cryptocurrency CFD trading is based on real-time price movements, which means you have the advantage of being able to profit when the price goes up or down, depending on which way you speculate in your trade. This is unlike investing directly into a cryptocurrency where you must rely on it increasing in value before you can bank a profit.
Lower investment needed
Using leverage to trade cryptocurrency CFDs gives you flexibility with the amount of capital you need to trade. For example, if you have $1,000 in your account and apply leverage of 100:1, you can gain exposure to a trade value of $100,000 (note that leverage can magnify both profits and losses). To invest directly in the asset, rather than trade it as a CFD, you must pay the full market price up front.
No need for a digital wallet
To invest in ‘physical’ cryptocurrency for the purpose of owning it, you need to have a digital wallet and accept the inherent online risk (such as hacking) involved in running it. Trading a cryptocurrency as a CFD can be done on an existing and proven trading platform, with added assurance of the trade being executed by a broker with regulatory compliance and accountability.
Hedge against fiat currency
As cryptocurrency usage and investment has become more popular and moved further towards the mainstream, the currencies themselves have become increasingly legitimised. With that has come stability, growth and an increasing viability and value as a widely accepted alternative form of currency.