What is Crypto Spread Betting?
Cryptocurrency spread betting is the newest way of playing with crypto suitable for anyone interested in earning money with a cryptocurrency like Bitcoin, Litecoin, Ripple, Bitcoin Cash, or Ether. Simply put, crypto spread betting entails predicting how the market value of a cryptocurrency will change. It’s similar to speculating the market fluctuations for valuable commodities like oil and gold.
How Does Crypto Spread Betting Work?
Spread betting on cryptocurrency is made possible by brokers such as SpreadEX, IG.com, and Ovalx. Such brokers will provide a bid, and your work is to place a bet, predicting whether you think the price will increase or decrease. One interesting fact about crypto spread betting is that you don’t own the asset.
There are two price quotes every trader needs to know before engaging in cryptocurrency spread betting. The first one is the asking price, which refers to the price of purchasing your stake. Then there’s the bid price or the selling price. The difference between the bid and your asking price is known as the spread.
What Does Short and Long Mean in Spread Betting?
It’s important to understand that spread bets are made through a derivative contract where the cryptocurrency is not bought or sold. Instead, you choose to go long or go short, depending on what you think the market value will be.
Going long means you think the market value will increase. In contrast, going short means you believe the asset's price will decline. The best decision would be to buy when the price is going up and sell if you speculate on falling markets.
Why start Cryptocurrency Spread Betting
The main advantage of crypto spread betting is that you don’t need to pay any taxes. Therefore, you can keep all profits. You can use leverage to increase profits if you are familiar with cryptocurrencies. And you are unlikely to pay a broker’s fee.
The main risk of Cryptocurrency Spread Betting
Although you can use leverage to boost your earnings, spread betting presents the risk of losing. Like any other form of betting, you win if your prediction is correct and lose your stake if you get things wrong. You also need some skills to make informed decisions.
How to Get Started With Cryptocurrency Spread Betting?
If you are thinking of making money through crypto spread betting, you can start right now. The process is straightforward, even if you are using cryptocurrencies for the first time. Consider the following steps if you wish to get started today.
Choose the platform & cryptocurrency: Pick a spread betting platform and choose your preferred cryptocurrency.
Determine your stake amount: Decide the amount of money you are willing to invest as your stake.
Buy or sell: Go long (buy) if the price of the asset is likely to increase and go short (sell) if you think it will drop.
Close trades: Finally, close the trades according to your choice.
Be carefull: Always make sure you are using a secure crypto wallet and a VPN connection to protect yourself from potential attacks.
Top Cryptocurrency Spread Betting platforms in 2022
One of the most important things you need to do is choose a reputable cryptocurrency spread betting platform. There are several options, so it’s advisable to do some background checks before picking. The following are some of the recommended platforms you can use.
SpreadEX has been operating in the trading business since 1999. The company’s main offices are located in St. Albans, Hertfordshire. Here is an overview:
Minimum Deposit: No min. deposit
Trading Fee: No fees
Minimum Spread: 0.6 pips
Easy to open an account
No min. deposit or fees
Trade Bitcoin, Bitcoin Cash, Ether, Bitcoin, and Ripple
Downloadable apps for Android and iOS mobile users
Award-winning customer support service
Only the major cryptocurrencies are available
Established in 1974, IG is one of the leading online forex trading providers in the U.S. The platform offers high-quality spread betting services, among other options. Learn more about its features below:
Minimum Deposit: $300
Trading Fee: 12.5% to 20% per annum plus a 7.5% per-annum IG admin fee
Minimum Spread: 0.17 to 38 pips
Intuitive Android and iOS apps
Trade confidently with secure 256-bit SSL encryption
State-of-the-art tools and 24-hour support
Inactivity fees if your account is inactive for two years in a row
Formerly known as ETX Capital, Ovalx is an online trading platform that offers spread betting Forex, and CFDs. Let’s look at the main features.
Minimum Deposit: $100
Trading Fee: 30% per annum adjusted every day
Minimum Spread: 0.6 pips
Free demo trading account
Thousands of instruments to choose from
More than 60 years of experience in the financial markets
Limited analysis tools