Profiting From the Crypto Boom: Octa Broker’s Guide to Leveraged Trading

With Bitcoin going through the roof
in 2024 and the entire crypto market showing substantial growth, retail
investors’ interest in this asset class also peaked. But how best to profit
from the changes occurring in the crypto market and what avenues of investment
to choose? The experts at Octa, a broker
with globally recognised licences, offer a rundown of leveraged crypto trading,
one of the most accessible ways to put the crypto hype train to use.

The expanding cryptocurrency
landscape is largely driven by increased adoption, incremental changes in
regulation, and ever-growing institutional interest. Given that, the sudden
peak in Bitcoin’s price in 2024 was caused by the results of the U.S. presidential
elections rather than long-term and well-established trends, experts claim.

Whatever their reason, intense price
fluctuations invariably cause increased market activity. Traders use all means
at their disposal to use this window of opportunity—and here are two of the
most popular ones.

One
goal, many paths

Cryptocurrencies are in high demand
as a tradable instrument. Of the many crypto trading options on offer, two seem
the least challenging and, therefore, most attractive for less experienced
traders: trading cryptocurrencies via contracts for difference (CFD) and doing
it using a crypto exchange.

Crypto CFDs are usually traded
through a financial broker. This approach allows you to access larger positions
with limited capital on your hands, increasing your trading potential but
upping the risks involved. Crypto exchanges, on the other hand, entail the
actual ownership of digital assets, which entails some extra requirements to
asset owners.

Crypto
exchanges

Crypto exchange users buy and sell
digital instruments directly, storing the obtained assets in their e-wallets.
When trading via crypto exchanges, gains and losses are based directly on
tradable assets’ price fluctuations when trading via crypto exchanges. However,
this method has its caveats since it typically involves dealing with various
fees depending on the platform’s rules. On top of that, traders expose
themselves to additional risks associated with digital asset storage.

While owning cryptocurrencies allows
for more flexible management of your digital assets, it also makes the process
more challenging. It also significantly limits your options for profiting
through falling markets, which can harm the long-term strategy and put your
overall gains at risk.

Trading
crypto using CFDs

Contracts for difference (CFDs) are
financial instruments that allow traders to profit from an asset’s price
movements without owning it. Instead, traders enter into an agreement with a
broker to exchange the difference between the contract’s opening and closing
prices.

With CFDs, traders can avoid any
extra efforts related to maintaining personal e-wallets, ensuring the safety of
personal data, and managing their transactions. Instead, brokers facilitate
trading by minimising risks and offering more accessible pricing.

It is worth noting that digital
platforms used for CFD trading are usually straightforward and user-friendly,
which makes it easier for retail traders to track and respond to market
movements.

Leverage:
CFD trading augmented

Brokers with CFD assets on offer
usually provide a number of leverage options, allowing you to control a more
significant position with a smaller sum. Leverage has its pros and cons. It can
boost the trading process rather than guarantee gains. While it magnifies the
profits, it proportionately increases the losses, so traders should be careful
with it and use it with risk management tools.

Octa, a broker with more than 13
years of market experience, offers leveraged CFD crypto trading with no
commissions and low spreads. This crypto trading method brings some extra value
to those unwilling to deal with the fees and commissions charged by crypto
exchanges. While Octa does not function as a crypto asset exchange, it fosters
a trustworthy trading environment by maintaining fast and efficient
withdrawals, 24/7 market availability for cryptocurrencies, and overall
security of clients’ funds.

Conclusion

Trading crypto via CFDs allows you
to benefit from market ups and downs, fully tapping into the potential of the
hottest asset type to date. With time and continuous learning, trading crypto
can become a consistent source of supplementary income to cover everyday
expenses and progress towards long-term financial goals.

About

Octa is an
international broker that has been providing online trading services worldwide
since 2011. It offers commission-free access to financial markets and a variety
of services used by clients from 180 countries who have opened more than 52
million trading accounts. To help its clients reach their investment goals,
Octa offers free educational webinars, articles, and analytical tools.

The company is involved in a
comprehensive network of charitable and humanitarian initiatives, including the
improvement of educational infrastructure and short-notice relief projects
supporting local communities.

Since its foundation, Octa has won
more than 90 awards, including the ‘Most Reliable Broker Global 2024’ award
from Global Forex Awards and the ‘Best Mobile Trading Platform 2024’ award from
Global Brand Magazine.