INTRODUCTION
Hello steemians, I am very delighted to write my homework post for this week and also using this opportunity to say a very big thank you to prof @kouba01 for this wonderful lecture this week.

Question One

What is a cryptocurrency CFD?

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In simple teams, CDF means Contract For Difference. It is a covenant between trades (buyer and seller) that guarantee that the buyer must pay the seller the difference between the current cost of an asset and its cost at covenant time.

CDFs creates chance for investors( buyers and sellers) to profit from price movement without owning the basic assets. The asset’s basic cost does not depend on the cost of a CDF contract, it is only the price which changes between the trade entries and exits.

CFDs gives many goodness that have increased the device massive popularity in the past years. In CFD trading, the buyer and the seller both agree between themselves to repeat market conditions and settle the difference among themselves when the position ends.
CFD’s are used by investors to make price predictions as to whether the price of an underlying asset will fall or rise. With this traders are allowed to place a bet on whether the price will move forward or downward.

How A Cryptocurrency CFD Works

Cryptocurrency CFDs enables its traders to assume on the cost of a cryptocurrency pair, such are as the followers;

1. Bitcoin going with Ethereum BTC/ETH
2. Bitcoin going with U.S dollar BTC/USD
3. Litecoin going with the U.S dollar LTC/USD
4. Ethereun going with the U.S dollar ETH/USD

investor ( traders and sellers) is entitled in making profit both in the rising and falling in the markets as well.
investor thinks the cost of a cryptocurrency will rise then he can go long term and the vice versa.
Leverage is one of the important concepts of an investor(traders and sellers) needs to know before trading cryptocurrency CFDs, it is both a key advantage and disadvantages of this type of product. In opening a CFDs trade an investor only need to deposit a small amount of the trade’s general cost.

Advantages Of Trading Cryptocurrency CFDs

1. An investor has high opportunity of gaining during both positive and negative phases of the market.
2. Better regulation: There are companies with reputable financial watchdogs to protect the interest of investors thereby preventing people from being frauded.
3. People who do not know much about technology are always scared with wallet opening procedures but not needed in the CFDs trading process. Disadvantages

Disadvantages of trading Cryptocurrency CFDs

1. investor can lose much of his investments if the margin trading effects are managed poorly
2. Trust considerations: This is based on a significant amount of trust since is CFDs based. You will need to make sure the prices stated on your broker's platform conforms to the general market value.

Question 2

How To Determine Whether A Cryptocurrency CFDs Suits Your Trading Strategy

In simple teams, CDF means Contract For Difference. It is a covenant between trades (buyer and seller) that guarantee that the buyer must pay the seller the difference between the current cost of an asset and its cost at covenant time.

CDFs creates chance for investors( buyers and sellers) to profit from price movement without owning the basic assets. The asset’s basic cost does not depend on the cost of a CDF contract, it is only the price which changes between the trade entries and exits.

CFDs gives many goodness that have increased the device massive popularity in the past years. In CFD trading, the buyer and the seller both agree between themselves to repeat market conditions and settle the difference among themselves when the position ends.
CFD’s are used by investors to make price predictions as to whether the price of an underlying asset will fall or rise. With this traders are allowed to place a bet on whether the price will move forward or downward.

How A Cryptocurrency CFD Works

Cryptocurrency CFDs enables its traders to assume on the cost of a cryptocurrency pair, such are as the followers;

1. Bitcoin going with Ethereum BTC/ETH
2. Bitcoin going with U.S dollar BTC/USD
3. Litecoin going with the U.S dollar LTC/USD
4. Ethereun going with the U.S dollar ETH/USD

investor ( traders and sellers) is entitled in making profit both in the rising and falling in the markets as well.
investor thinks the cost of a cryptocurrency will rise then he can go long term and the vice versa.
Leverage is one of the important concepts of an investor(traders and sellers) needs to know before trading cryptocurrency CFDs, it is both a key advantage and disadvantages of this type of product. In opening a CFDs trade an investor only need to deposit a small amount of the trade’s general cost.

Advantages Of Trading Cryptocurrency CFDs

1. An investor has high opportunity of gaining during both positive and negative phases of the market.
2. Better regulation: There are companies with reputable financial watchdogs to protect the interest of investors thereby preventing people from being frauded.
3. People who do not know much about technology are always scared with wallet opening procedures but not needed in the CFDs trading process. Disadvantages

Disadvantages of trading Cryptocurrency CFDs

1. investor can lose much of his investments if the margin trading effects are managed poorly
2. Trust considerations: This is based on a significant amount of trust since is CFDs based. You will need to make sure the prices stated on your broker's platform conforms to the general market value.

Some countries legalised CFDs and implement client money protection laws to protect the investor from any harmful practices of CFD providers.
By the law, money transfers to CFD provider must be separated from the providers money in order to prevent providers from spending their own. When a contract is agreed the provider can withdraw an initial margin or can even request more.

Question 4

Do All Brokers Offer Cryptocurrency CFDs?

cryptocurrency CFDs depends on which one you trading with, as discussed in this week’s lecture on cryptocurrency CFDs.

It was illustrated that some CFDs offered by Ethereum broker was seen to be 1 dollar. One can invest without paying charges to a centralized exchange. So because of that matter, I will say it depends on the broker one is dealing with.

Question 5

How To Trade With A Cryptocurrency CFDs With A Free Demo Account

Step 1 : search for avatrade on google and click on the link below
https://www.avatrade.com/

Step2: click on the register now to sign up

Step 3: enter details and clicked on create account

Step 4: account will open after passing on the create account button

Step 5: open the menu page of the site and click on switch account to change to demo account

Step6: switch to demo

Step 7: Demo account opened, then searched the type of cryptocurrency you want to buy, I choose ETH

Step 8: You indicate the amount of ETH you want to buy. I choose 100 and after indicating the amount, you then click on buy

Conclusion

In conclusion, I will like to say that, cryptocurrency CFDs are well known in the system because of its importance to traders and sellers in generating profit within a short period of time. And also investors should be aware of the risks involved in cryptocurrency CFDs trading which are very much higher and can cause an investor to face losses than his or her initial investments.
I hope my homework task will be accepted and review thank you!!!