REPOST FOR- Homwework Task by @wonderbowy for @kouba01 Steemit Crypto Academy Season 2: Week2 | Cryptocurrency Contracts For Difference (CFDs) Trading

INTRODUCTION

Being in a cryptoworld brings us to much greater possibilities than we could ever imagine.
maximizing our assets in never limited to only just mining, holding etc.
CFDS TRADING is one major way of maximizing crypto assets.
Though risky but its very much worth it when the investor is well skilled and has a certain tolerance to risk.(mostly HIGH RISK AVERSION)

Now lest go straight into these weeks questions:

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1 What is a cryptocurrency CFD?

The full meaning of CFD is CONTRACT-FOR-DIFFERENCE.....
CFD simply means an agreement which is based on an underlying assets which could be in the form of a stock, commodity,index or cryptocurrency.
Whenever a trader decides to trade a CFD, he or she expects the value of the underlying assets to either go up or down, depending on whether the investors wants to sell or buy.
Traders can have the chance of going short or long term as well as use leverages when it comes to Cryptocurrency CFD.

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

Most at times its good to give yourself sometime in order to acquire more knowledge on how trading works. Also CFD trading can sometimes be frustrating when lots of loses are recording.
So one way to know how it works and best suitable CFD trading patern to adopt is by practicing. This can be done through the use of DEMO ACCOUNT.
On demo account, you have nothing to lose, so as you play around with the trading, you will find that spot which will favor you CFD trading in asset later on.

1 When you use the DEMO ACCOUNT for a while you can easily forecast price increase and decrease in certain assets.

2 The trader gets access to the CFD market assets.

3 Will be able to read fundamental indicators or chats.

3 Are CFDs risky financial products?

Will on my part I will say its risky. Investors who go in for CFD trading are mostly HIGH RISK TOLERANCE. This are investors who are ready to take high risk on their assets in order to gain high rewords.
Sometimes too looking at the negative side alone can make you think its risky but looking at the positive side too will tell a different story all together.
But my opinion still stands, I it very risky to venture into CFD trading.

4 Do all brokers offer cryptocurrency CFDs?

Well this one is a very big question that's very difficult to answer on my part, this is because i have not tried every broker to know if they all offer CFD. Personally, I will say cryptocurrency is hot cake on the financial market today and most brokers will definitely adopt to it because of how the world is moving into cryptocurrency but to say all brokers offer CFD , I just CANT.
I will rather say "MOST BROKERS" or even not all brokers offers CFDs.

5 Explain how you can trade with cryptocurrency CFDs on one of the brokers.

STEP I. VISIT Visit https://www.etoro.com/ and then click on join now.

STEP 2 ENTER YOUR PERSONAL DETAILS, ACCEPT THE TERM AND CONDITIONS AND FINALLY CLICK ON CREATE ACCOUNT.

ACCOUNT IS SUCCESSFULLY CREATED, CLICK ON COMPLETE PROFILE

STEP 3 SELECT VIRTUAL

STEP 4 CLICK ON DEPOSIT FUNDS/REAL AND CHOOSE VIRTUAL PORTFOLIO

VIRTUAL PORTFOLIO/ DEPOSIT IS SUCCESSFUL

NOW GO TO VIRTUAL PORTFOLIO AND START EXPLORING YOUR DEMO ACCOUNT..

5 CLICK ON MARKET TRADERS..

CLICK ON CRYPTO

6 SELECT ANY OF THE CRYPTOS YOU WILL LIKE TO TRADE, I CHOSE RIPPLE (XRP)

7 ENTER THE AMOUNT YOU WHICH TO TRADE( SELL OR BUY) THEN CLICK ON OPEN TRADE.
NOTE : MINIMUM AMOUNT IS $25.00

JUST 2 TRADES AND I AM ALREADY MAKING LOSES😂

CONCLUSION

CFDs are great ways of exploring the forex market an investor but be mindful of how you go about it.
Try and analysis both the merit and the demerit of CFDs before going into IT. Some basic ways to analysis the market is by practicing with DEMO ACCOUNT. Study it for a while and develop some new strategies to make huge profits.
To be on the safer side, you can choose to COPY PROFESSIONAL TRADERS.
Mind you they also make loses at times but not that much. So coping them does not make you a loss free trader😅.

THANK YOU.