Steemit Crypto Academy Season 2 Week 2- Homework Post For @kouba01

in SteemitCryptoAcademy3 years ago (edited)

Hello fellow steemians,
I'm very happy to take part in this week's lesson of our noble professor @kouba01.
After reading the lecture not and understanding it I would like to start answering the questions given.

WHAT IS A CRYPTOCURRENCY CFD ?


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Let first look at what cryptoocurrency is. We all know that cryptocurrency is a digital currency that is use for the payment of goods and services online. blockchains helps cryptocurrencies to function. Blockchains are decentralized technology that helps to record transactions.

Now lets look at what CFD is ?
CDF is an abbreviation of Contract for Differences. CFD gives investors the opportunity to have a contract between them and brokers. CDFs are used by investor to check whether the price of assets will increase or decrease, so if investors expect an increase in price will buy CDF, and if they should expect a decrease will sell.CDFs trade over the counter, they are not treaded on major exchanges. CFDs owners are giving dividends and also investors to buy and sell position.One of the major problems of CFDs is fluctuation of price.
I will conclude that CFD helps investors price changes in cryptocurrency within a particular period of time.

HOW DO I KNOW IF A CRYPTOCURRENCY CFDs ARE SUITABLE FOR MY TRADING STRATEGY

Before you decide to trade in cryptocurrency CFDs, there are some factors that one need to consider to make sure you take the right decision.
Some of these factors are;

  • One has to know the time duration he or she wants to make profit, if you want to make profit in a short period of time then investing in cryptocurrency CFDs is suitable for you. On the other hand if you are targeting profit in the long run trading in cryptocurrency CFDs is not suitable for you.

  • One should be able to take risks before investing in cryptocurrency CFDs since there are a lot of risks involve in it.
    Therefor you need to be courageous before you can invest in it.

*One is suitable to trade on cryptocurrency CFDs if he or she has a low capital as start up capital for his or her trading.

  • Before one starts trading trading on CFDs the person has to have a fair idea about CFDs unless the probability of the person running loss will be very high.

ARE CFDs RISKY FINANCIAL PRODUCTS

CFDs are risky financial product . In every financial product there are some risks involves. Risks in CFDs are very huge since they are laveraged products.
Laverage product are products that makes an investor gain huge profit on a small capital. Because CFDs are laveraged products investors could also lose all their deposits.
It's advisable for investor not to invest money that they can not afford to loose in CFDs since it is very risky to invest in it.
I will conclude by saying that all investors should have a fair knowledge about CFDs before investing in it because one could easily lose his or her life time savings as a result of investing in CFDs.

DO ALL BROKERS OFFER CRYPTOCURRENCY CFDs

Not all brokers offers CFDs. Below are CFDs brokers;

  • Capital.com
  • Tickmill
    *Just2Trade
    And also below are some brokers that do not offer cryptocurrency CFDs;
  • Interactive Brokers
  • Robinhood
  • Tradestation
    Since I have listed some brokers that do not offer cryptocurrency CFDs so I can boldly say not all brokers offers CDFs.

HOW TO TRADE WITH A CRYPTOCURRENCY CFDS WITH A FREE DEMO ACCOUNT

I created an etoro account to help me carry on with the trade using a free demo account.

  • I first visited the official website of etoro (www.etoro.com)
  • I then created an account on etoro. After creating the account I switched the account from real portfolio to virtual portfolio.
  • I then completed my portfolio by visiting the profile page.
  • after that I filled in the details of my VISA CARD required to continue with the process.
  • I then returned to my virtual portfolio
  • After that I went to trade market
  • I then searched for bitcoin choose it.
  • Finally I opened a trade of $6,000.00
    Below are the screenshots of my steps.

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    CONCLUTION

    Even though investing in cryptocurrency CFDs may be highly profitable but one can also lose all his deposit if care is not taken. There for it is advisable to invest money you can afford to loose .
Sort:  

Hello @marwone,
Thank you for participating in the 2nd Week Crypto Course in its second season and for your efforts to complete the suggested tasks, you deserve a 4/10 rating, according to the following scale:

OriginalityCompliance with topicConsistency of methodQuality of analysisClarity of structure & language
(0/2)
(2/2)
(1/2)
(0/2)
(1/2)

My review :

Your answers were not consistent, just sporadic information, no methodology for writing, and it was also possible to try another broker to share this experience with us.

Thanks again for your effort, and we look forward to reading your next work.
Sincerely,@kouba01

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