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What are the risks?
Product concerns (cryptocurrency CFDs) include:
Price volatility: The value of cryptocurrencies and therefore the value of their associated CFDs is extremely volatile. They are vulnerable to strong price changes caused by unexpected events or changes in market perception. The value of some cryptocurrencies has recently fallen by more than 30% in a single day.
Leverage: Some companies offer levers up to 50: 1. Leverage multiplies potential losses and profits and can have a significant impact on commissions. You also risk losing more than your initial investment, which means you could owe money to the company.
Fees and funding costs: Fees tend to be significantly higher than for other CFDs. Fees may include the spread (the difference between the prices a firm offers to buy or sell a CFD position), financing costs, and fees. You should consider their impact, which can vary significantly between firms, on the likelihood of making a profit. Price
Transparency: Compared to currencies, there may be more significant variations in the pricing of cryptocurrencies used to determine the value of your CFD position. There is a higher risk of not receiving a fair price for the support cryptocurrency when trading.
