KUALA LUMPUR, MALAYSIA -
Media OutReach Newswire
- 27 June 2025 - Crypto has been booming for quite a while now. But for
those who missed the hype train or find the highly volatile crypto
market unsuitable, contracts for difference (CFD) present a viable—and
arguably more secure—asset type. The experts at Octa, a global broker
since 2011, explain why CFDs are worth exploring to expand experience
with the financial markets.
New trends, old problems
The crypto market experienced turmoil throughout 2024. Bitcoin reached
multiple all-time highs in a span of one year, and altcoins tried to
follow suit. In early 2025, the appearance of the TRUMP coin reinforces
the global trend for crypto's increasing media presence and violent
fluctuations of the crypto market.
However, even with the current uptrend, the downsides of the crypto
market persist. Excessive volatility and the speculative nature of most
crypto assets make it a bumpy ride for anyone who aims for consistent
outcomes.
Among the most popular assets that can be traded instead of crypto,
one stands apart for flexibility and accessibility: contracts for
difference, or CFDs. These financial instruments allow traders to
speculate on the price movements of an asset without owning it. Instead
of buying or selling the actual asset, traders enter into an agreement
with a broker to exchange the difference in the asset's price from when
the contract is opened to when it is closed. This asset price difference
constitutes CFD traders' profits or losses.
Below are some of the main advantages of CFD trading over investing in traditional crypto assets.
Ride with the wave
One of the worst situations crypto investors can face in their journey
is sudden and prolonged downtrends that appear out of nowhere. Profit
potential disappears when the entire market suddenly begins to fall. In
cases like these, even portfolio diversification won't help.
In contrast, the contract nature of CFDs allows for more flexibility,
enabling traders to act on both upward and downward trends. CFD trading
enables positions to be opened in anticipation of both rising and
falling prices. In other words, CFDs as an asset hold twice as much
potential for gains—any swing in asset price can turn into a profit
opportunity.
Better conditions, lower costs
Top CFD brokers can often offer superior trading services, and here's
why. Crypto traders regularly face slow order execution, high slippage,
and unexpected fees imposed by crypto exchanges. On the other hand, CFD
brokers often offer lower spreads and more efficient order execution,
which can affect profits significantly if the markets show high
volatility.
For example,
Octa, a CFD
broker boasting extensive market experience, offers some of the best
trading conditions on the market. The broker's portfolio contains a wide
variety of CFD assets, including CFDs on crypto, gold, and indices.
Octa's clients have the option to replenish their accounts using
cryptocurrency and withdraw funds directly to their cryptocurrency
wallets. It is important to note that while Octa facilitates these
transactions, the broker does not directly engage in providing services
related to cryptocurrency. Instead, it operates through reputable
partners who possess the necessary licenses to conduct
cryptocurrency-related activities.
No wallet, no worries
Stories about astronomical amounts of cryptocurrency gathering digital
dust on an unrepairable hard drive or unused e-wallet inaccessible
because of a lost password have been filling the web for ages. But the
risks of losing digital capital due to some transactional or e-wallet
issues are more than real.
CFD traders don't own cryptocurrencies—or any other underlying asset,
for that matter. Instead, they are speculating on the price movement of
the underlying asset and can, therefore, tap into the asset's profit
potential while avoiding the risks of owning it.
CFD traders don't have to manage e-wallets, and that frees them from
significant cognitive load—not to mention obvious risks. What's more,
the risk of a crypto exchange being hacked and all their digital capital
stolen doesn't concern them either.
With their flexibility, security, and accessibility, CFDs allow
traders to step up their game and avoid many of the drawbacks
cryptocurrencies are so famous for as a tradable asset. On top of that,
with CFDs, traders can diversify their portfolios since these
instruments encompass the whole gamut of various underlying asset types,
including precious metals, stocks, and indices.