This time I want to make a homework post that will answer the questions of professor @kouba01 from Steemit Crypto Academy, as the question is to answer 5 questions that are given about Cryptocurrency CFD.

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[1] What is a Cryptocurrency CFD?

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CFD stands for Contracts For Difference which means 2 people enter into an agreement for the same deal, these 2 people are a trader and a broker. These two people make an agreement on trading assets that are in the market, if a trader chooses that if an asset will decline and if the answer is correct then he will get the profit that will be paid by the broker. On the other hand, if his estimate is wrong, the money he puts in will be taken by the broker.

CFDs usually trade real assets such as gold, silver, stocks, oil, and many more. However, now there is a new asset trading, namely cryptocurrency trading or what is often called Cryptocurrency CFD. How to trade Cryptocurrency CFDs is the same as any other asset, but the thing that makes Cryptocurrency CFDs attractive is the very volatile level of price movements, so for a trader, this type of short time is a treasure trove.

The type of trading used in Cryptocurrency CFDs is margin trading, which means that we can borrow some nominal money which will be capital to be traded on Cryptocurrency CFDs, and later will be charged a fee that has been agreed in advance.

[2] How do I know if cryptocurrency CFDs are suitable for my trading strategy?

There are some initial steps that you should pay attention to before starting trading on Cryptocurrency CFDs.

• Initial Capital: If you are the type of person who likes to spend large capital at the beginning, then you are not very suitable for trading on Cryptocurrency CFDs. This is because you will not use the money lending option provided by margin trading. Meanwhile, if you don't have enough money, then you will be compatible with Cryptocurrency CFDs.

• Types of Traders: People who are suitable for trading on Cryptocurrency CFDs are short-term traders. If you are a long-term type then I do not recommend trading on Cryptocurrency CFDs.

• Experience: For those of you who are new to Cryptocurrency CFDs, then don't try to jump right into trading on Cryptocurrency CFDs. The risks provided by Cryptocurrency CFDs are enormous compared to regular Spot Trading.

• Risks: Cryptocurrency CFDs are a place for people who like to take risk trades to get quick and big profits. Therefore, if you don't like taking risks then it's better not to trade Cryptocurrency CFDs.

[3] Are CFDs risky financial products?

Every profit will have a risk stored behind it. The greater the benefits offered, the greater the risk of loss that we will get. Cryptocurrency CFD is the right example of my explanation above, Cryptocurrency CFD does offer enormous benefits in just a short time, but behind that, we can also lose our money quickly and with a very fantastic nominal, our money just disappears.

I have experienced this firsthand at a Cryptocurrency CFD Broker. At first, I didn't understand how to trade CFD Cryptocurrency, I was just trying it and I didn't even make a Stop Loss price, but I wondered why suddenly the money in my account just decreased without any notification, after that I searched and I found that how to trade on CFD Cryptocurrency is different from usual.

Due to my lack of experience in the trading world, I lost my money, this is what caused many people to get caught up in Cryptocurrency CFDs. With this big risk, it is recommended for those of you who are new to be careful in trading on Cryptocurrency CFDs. There have been many brokers who made notifications on the home page of the website about the amount of risk from Cryptocurrency CFDs. For example, you can see in the image below.

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This image is of a broker named Capital which also provides Cryptocurrency trading on its market. If you are interested, you can see the steps for creating a demo account and how to trade at the Capital broker in my explanation in question number 5 later.

[4] Do all brokers offer cryptocurrency CFDs?

Not all brokers only provide a market for Cryptocurrency, many brokers provide other assets to be traded on their market. Usually, the traded asset is an asset that has a good rate of increase in price then the asset also depends on the interest of the existing traders.

There are several examples of brokers who provide other assets besides cryptocurrency, including:

• Capital
• eToro
• Plus 500
• PrimeXBT
• AvaTrade
• Roboforex

You can search for other brokers on Google, there are many websites that list trusted brokers for trading.

[5] Explain how you can trade with cryptocurrency CFDs on one of the brokers (Using a demo account)?

For example, I will explain how to trade on the Capital broker. However, I will explain in advance how to create a demo account at Capital, this is to anticipate losses during learning.

• Create a Demo Account at Capital

First, visit the Capital website then select the "Try Demo" option on the home page of the website.

Then register your email and create a password for your capital account (make a strong password).

You will be sent an email by Capital to confirm the email that you signed up for. Enter your email, then click on the "Confirm Email" button.

After that, there will be a notification that your email has been confirmed. Click on "Continue" for the next stage.

Wait a few moments so you can log into your Capital account, this process will take approximately a minute.

And your account is finished, you can see the initial appearance of your demo account in the image below.

For initial capital, you are given virtual money of 1,000 euros.

• Trading on a Demo Capital Account

As I have explained that Capital is a broker that provides various assets to trade, therefore we must first look for crypto assets for us to trade.
The trick is to type "Crypto" in the search field.

There is a slight drawback when we are going to trade on a Capital demo account, not all markets can be tried to trade. As in the Ripple / Bitcoin market in the image below, the market is locked for a demo account, if we want to trade on that market we have to do it on a real account.

For this example, I will try a market that is opened for demo accounts such as Litecoin / EUR which is shown in the image below. I felt that Litecoin would increase in price, so I took the "Buy" option.

Then you can set the loss limit and the profit-taking limit that you want, after that press "Buy" in blue.

If you look at the market chart, it will show you the profit-taking limit that you specified earlier.

If you want to end trading, then click on the "Close" option in the Litecoin / EUR market option.

Conclusion

Based on my experience, so that you don't experience big losses, first learn about Cryptocurrency CFDs. Many people have fallen into it and experience enormous losses just because they are interested in the benefits that will be obtained. Take every factor into account and make the right decision for yourself.

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Thank you for reading my blog, hope it will be useful for readers.
I would also like to thanks @kouba01, @steemitblog, @steemcurator01, @steemcurator02 for creating such excellent study spaces.
See you in the next post!!