Cryptocurrencies or digital currencies are fast emerging as one of the most traded asset classes. This is largely due to their potential role in changing the global financial landscape. Initially, trading in cryptocurrencies was considered to be a niche for tech insiders with trading experience who were well versed with the functioning of digital currencies and their technicalities. That perception has changed with reputed brokers now offering investors a chance to trade cryptocurrencies via instruments such as Contracts for Difference (CFDs).
While some investors prefer to own cryptocurrencies such as Bitcoin (BTC), many are opting to deal in CFDs instead. CFDs allow you to enter into an agreement with a broker over a defined period instead of opening a position directly in the market. At the end of the term of the contract, the difference between the opening and closing prices is exchanged. Before trading cryptocurrency CFDs, it is important to take a look at digital currencies, the reasons for their surging popularity and the manner in which they are traded.