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The ultimate guide to crypto spread betting

August 26, 2022

Lots of crypto gambling opportunities have opened up since the inception of cryptocurrency. Besides purchasing and keeping crypto in a digital wallet, you can use it to bet online. Interestingly, you can gamble and profit using this digital currency without owning any crypto. One of the best ways to do this is through spread betting. Read on to find out how this relatively new type of gambling works.

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.

  1. Choose the platform & cryptocurrency: Pick a spread betting platform and choose your preferred cryptocurrency.

  2. Determine your stake amount: Decide the amount of money you are willing to invest as your stake.

  3. 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. 

  4. Close trades: Finally, close the trades according to your choice.

  5. 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

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

Key Features

  • Trade spread bets, CFDs, and ETFs from one account 

  • Advanced charting tools

  • Price alerts via text, push, and email messages

Pros

  • 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

Cons

  • Country restrictions

  • Only the major cryptocurrencies are available

IG.com

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

Key features

  • Risk management tools

  • Trading alerts

  • Charting packages

Pros

  • Multiple currencies

  • Intuitive Android and iOS apps

  • Trade confidently with secure 256-bit SSL encryption

  • State-of-the-art tools and 24-hour support

Cons

  • Inactivity fees if your account is inactive for two years in a row

Ovalx

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

Key Features

  • Social and CFD trading options 

  • Different trading platforms

  • An advanced charting toolkit

  • Downloadable software for Windows, MAC, Android, and iOS

Pros

  • Free demo trading account

  • Thousands of instruments to choose from

  • More than 60 years of experience in the financial markets

Cons

  • Limited analysis tools

FAQ

What is cryptocurrency spread betting?

Cryptocurrency spread betting is a form of trading where you predict whether the value of an asset (crypto) will rise or fall. You simply bet on the future price without buying crypto.

Can I win real money through crypto spread betting and cash out?

Yes! All you have to do is to find a reliable broker and sign up. The next step is to make the minimum deposit required by the platform. You are free to withdraw your winnings if your prediction is correct.

Which cryptocurrencies are suitable for spread betting?

The best crypto spread betting platforms accept the most popular cryptocurrencies such as Bitcoin, Ether, Ripple, Litecoin, and Dogecoin among others.