Cryptocurrencies are here to stay. They’re on mainstream media, discussed on financial forums and it looks like the excitement surrounding them is only growing. It’s not too difficult to assess why.
Cryptocurrencies have had major effect over the entire world and - more specifically – the way we treat money, pay for products or services, and even think about global economy.
For online traders, this high volatility could also mean risks and opportunities, since cryptocurrencies can be traded in the form of CFDs.
Trading cryptocurrencies in the form of CFDs allows traders to invest in any direction, use leverage to maximize their deal size and it also offers another level of security, as cryptocurrency CFDs cannot be stolen from the exchange. Want to know more? Read on.
A cryptocurrency is a digital asset used as a means of exchange.
The creation of new currency units and security of the exchange is managed using cryptography (encrypted code), making cryptocurrency CFDs a revolutionary, regulated new market instrument.
Being mostly decentralized (e.g.: not under control of the banking system), cryptocurrencies are still relatively new.
The first decentralized cryptocurrency was Bitcoin, which appeared in 2009. Many other cryptocurrencies such as Litecoin, Ripple and Ethereum have appeared since, and have been accepted by the general public with various levels of success.
Unsurprisingly, many central banks consider cryptocurrencies a risk to the traditional monetary system. Their main concerns are based around the potential decrease in the ability of governments and central banks to influence the economy, as well as a decrease in the public’s trust in fiat (traditional) currencies, should cryptocurrencies keep gaining significant footing in the global economy.
Understanding Blockchain
Blockchain facilitates secure online transactions, by creating a constantly growing list of records (AKA blocks). Essentially, it is a public ledger, listing all cryptocurrency transactions ever executed. A single block records part or all of the recent transactions. Once completed, the block joins the blockchain as a permanent database and a new block is generated.
Confused? Don’t worry, you don’t really need to understand the technology in order to trade cryptocurrency CFDs.
As we just mentioned, many cryptocurrencies have been created over the past years and there are probably new ones being created as we speak. We can’t possibly cover all of them, but here’s a quick look into a few of the most popular names.
Bitcoin
18% decrease
This cryptocurrency needs no introduction. It quickly gained popularity and today is accepted as a payment method by numerous businesses. For investors, Bitcoin has supplied ample opportunities, featuring amazing volatility. At iFOREX, it can be traded in the form of CFDs against the US Dollar.
Performance 2025
Solana
43% decrease
Solana is the name given to both a cryptocurrency (SOL) and a high-performance blockchain network designed to support fast, low-cost digital transactions and decentralized applications. Known for its speed and scalability, Solana enables thousands of transactions per second, making it popular for areas such as DeFi, NFTs, and Web3 projects. Like other major cryptocurrencies, Solana can be traded at iFOREX against the US Dollar with leverage, in the form of a CFD, allowing traders to speculate on price movements without owning the underlying asset.
Performance 2025
18%
decrease
Performance
2025
43%
decrease
Performance
2025
XRP
22% decrease
XRP is a digital asset designed to facilitate fast, low-cost cross-border payments. It operates on the XRP Ledger, a decentralized blockchain built specifically to support efficient value transfers between financial institutions. Unlike many cryptocurrencies that focus on decentralized applications, XRP’s primary use case is payments and liquidity management. At iFOREX, you can trade XRP against the US Dollar as a CFD, allowing you to speculate on price movements with leverage, without owning or storing the underlying cryptocurrency.
Performance 2025
Ethereum
22% decrease
Ethereum (sometimes referred to as Ether) is an increasingly popular cryptocurrency, which has been active since 2015. Ethereum is also a decentralized software platform and a programming language that can assist developers create and publish distributed applications. At iFOREX, you have the opportunity to trade Ethereum against the Dollar, with leverage, in the form of CFD.
Performance 2025
22%
decrease
Performance
2025
22%
decrease
Performance
2025
There are a few reasons why so many people all over the world are trading cryptocurrencies, but the main reasons are probably volatility, and the understanding of the greater value cryptocurrencies could potentially attain in the future, similar in many ways to the excitement that gold prospectors experienced in the past. Always have in mind that volatility also features risks, especially when considering that cryptocurrencies are not under any central regulatory control. And indeed, many cryptocurrencies feature extreme volatility, offering numerous opportunities to online traders.
Want an example?
30%
Prefer a visual example? Just look at the chart below…
Throughout 2024
Bitcoin's price peaked at $126,000 and then decreased by over
30%
Prefer a visual example? Just look at the chart below…
2025
And remember: Traders can always choose to short or long their position, potentially taking advantage of any price change – up or down.
Traders can always choose to short or long their position, potentially taking advantage of any price change – up or down.
One of the key advantages of trading cryptocurrencies via CFDs is the ability to go short-that is, to potentially benefit when prices fall.
During market corrections, regulatory news, macroeconomic shifts, or sentiment-driven sell-offs, traders can open short positions on Bitcoin or other declining crypto assets instead of sitting on the sidelines.
This flexibility allows traders to adapt to changing market conditions, hedge existing exposure, and take advantage of bearish trends just as they would bullish ones.
In highly volatile crypto markets, the option to trade both upward and downward price movements can be a powerful tool when combined with proper risk management and a clear trading plan.
Another possible reason for the growing popularity of these instruments among traders can be the buzz.
Cryptocurrencies are all over the news, everyone is talking about them and - as is the case with many trends - popularity breeds more popularity, increasing the excitement and, in turn, leading to even greater volatility.
And let’s not forget the E-wallets…
The final reason for why some people choose to trade cryptocurrencies in the form of CFDs is that in this form of trading, they don’t need E-wallets. Regular cryptocurrency trading requires that clients download E-wallets and use them when trading. What’s the problem with that, you ask? Well, E-wallets are not all equally safe. They can potentially be hacked and your Bitcoins, Litecoins or whatever cryptocurrency you happen to own could be stolen. Clients need to always be on their guard and take steps to ensure the protection of their cryptocurrency. When trading cryptocurrency CFDs though, this is not an issue, as CFDs cannot be stolen or manipulated.
Before we provide you with an example of CFD trading - which we intend to do shortly - let’s make sure we understand what a CFD is. CFD stands for Contract For Difference. When you trade cryptocurrencies in the form of CFDs, you’re not actually buying the cryptocurrencies, but you are speculating on their price.
One of the key features of trading cryptocurrencies in the form of CFDs is leverage. This is a major consideration, because leverage allows you to open larger deals with a relatively small investment, actively boosting your trading power.
Currently, iFOREX offers market leverage on all cryptocurrencies. The maximum leverage available will be displayed in your deal slip when opening a trade.
Your investment
Chosen Leverage
Your trading power
$500
x
2
=
$1,000
Remember: Leverage enhances your trading power, but it also increases risk. If you are new to online trading, take your time getting to know this tool and its abilities. You can take advantage of the iFOREX Demo Account to train with no risk before you trade for real.
You can take advantage of the iFOREX Demo Account to train with no risk before you trade for real.
Want to open a deal on cryptocurrencies? Here’s a quick example of how to do so in four steps.
Choose your instrument
In this case, let’s take the example of the Bitcoin against the US Dollar
Choose your deal size
Remember: Leverage boosts your trading power, so you can open deals that are substantially larger than your initial investment
Choose direction
As we said above, when trading cryptocurrencies in the form of CFDs, you can always choose to ‘short’ (sell) or ‘long’ (buy) your position, potentially taking advantage of price changes in any direction – up or down
When you decide, close your deal.
Remember: You can always set up automatic market orders such as Stop Loss or Take Profit, which will automatically close your deal once it reaches a certain price level. This is a great way for you to manage multiple deals and control your deals around the clock.
You can always set up automatic market orders such as Stop Loss or Take Profit, which will automatically close your deal once it reaches a certain price level. This is a great way for you to manage multiple deals and control your deals around the clock.
Many brokers set expiration dates on deals, closing them upon maturation.
They rollover the deal from the prior deal to the new one, which in-turn, keeps the deal open. However, even though the deal remains open, you are charged a new spread as though you had opened a new deal. Some of the brokers who implement expiration dates on cryptocurrencies, charge the spread again each time you re-open the deal. iFOREX does not implement expirations or rollover on cryptocurrencies, thereby saving you from paying the spread again and again.
Here’s a quick summary of the main advantages and disadvantages of trading cryptocurrencies in the form of CFDs.
Advantages
Disadvantages
The popularity of cryptocurrencies is growing exponentially and at iFOREX you have the opportunity to take part in this exciting, new market. Our selection of cryptocurrencies is constantly expanding and we provide you with the latest tools and top trading conditions via secured and reliable trading platforms.
If you are new to online trading and need some assistance getting started, we invite you to take advantage of our vast educational resources, as well as the availability of a dedicated account manager.
This is a good opportunity to learn more about our platforms, services and the market at your own pace, as well as to find answers to any questions you may have about cryptocurrencies or the variety of hundreds of additional instruments we offer.
At iFOREX we understand the importance of a good trading experience and provide you with a variety of advanced, yet user-friendly trading tools and features for your convenience. Here are just a few examples…
1
Pulse- your market scanner for the hottest trends2
The Daily opportunity video3
The Trading Expert4
Trading charts with market indicators5
Economic calendar6
Daily news and analysis7
Directional trends (provided by a third party)8
Hedging abilities9
Negative Balance Protection
