We all must have heard how making money requires immense hard work and commitment. Well, this is not always the case. There are two ways of making money: the hard and smart ways. The hard way will require you to dedicate a major chunk of your day to your work.
Meanwhile, if you choose the smart way, all you will need to do is sit back and relax while the money roll in. It will take some time but you will surely achieve this level. Now the question arises what should one do to be on the smart path? The answer is simple, by investing and trading your money. If you start investing now, you will reap the benefit of it in the long term.
There are many fields available to invest in this time and era, such as the stock market, real estate, cryptocurrency, and index funds. One of the lesser-known investment options, which can turn out to be a very fruitful one, is, CFDs.
What are CFDs?
CFD stands for Contract for Differences. In CFDs, you are trading on predictions and assumptions instead of the actual asset. Trading in CFDs opens a wide array of financial markets for traders. You can buy the CFDs of shares, currencies, commodities, and stock indices.
How do CFDs work?
When the market is open for an asset, you predict the future value of that asset, and then based on your prediction, you decide whether to buy or sell the CFDs of that particular asset. If according to your forecast, the price of the asset goes up, you will accept its CFDs. This is known as going long. And if you think it will go down, you can sell the asset. This is called going short. Your profit or loss will be based on how true your prediction was once the market closes. If the market goes in your predicted direction, you will make a profit and if it goes away from it you will be at a loss.
Let us explain this with an example so you understand it in a better way. There is a clothes manufacturing company whose current value per share is $4. According to the analysis of thebitcoinsystem, you think the price per share will jump in the future. Instead of buying shares of that company, you buy CFDs of those shares. If you buy 200 CFDs, they will be worth $800 (200 x $4). But you will not be required to pay the whole amount, you will only pay the margin which would have been pre-decided by the broker or the company. If the margin of this company is 6%, you will only pay 6% of $800, which is $48.
If you are proven to be right, and the price per share increases to $7, your CFDs will now be worth $1400 (200 x $7). This way, you would have made a profit of $600 by just investing $48. A return of 1250% on your investment!
Why choose CFDs?
This investment option is cost-effective, as can be seen in the example above, by investing a minimal amount, you can earn promising returns. Trading in CFDs doesn’t require a huge sum of money as the margin that needs to be paid on the CFDs is usually very low. Even if you make a loss, the loss won’t be huge as the principal amount was low, however, the profits you make will be very high, so trading in CFDs is worth the risk!
Another attractive feature of CFDs is that you can benefit from them even if the market is low. If you are anticipating a decrease in the market, you can sell CFDs instead of buying and make a profit.
How to begin trading CFDs?
You don’t actually need to go somewhere to trade CFDs, Bitcoin Prime has brought the whole financial market to the palm of your hand. With Bitcoin Prime, you can easily trade from the comfort of your home. Let us talk more in detail about why one should opt for Bitcoin Prime over any other trading software.
The benefits of being a user of Bitcoin Prime
It doesn’t matter if it is your first time stepping into the world of trading, the assistance provided by Bitcoin Prime will help you in easing in and become familiar with the know-how of the app. You are guided every step of the way so you don’t face any challenges while navigating through the app. Bitcoin Prime breaks down even the most complex info into a simpler way that is easy to understand even for a newbie.
The software is compatible with any gadget as long as it has an internet connection. It doesn’t require any extensive downloads or installation. You can easily access the software just by going to their website.
High level of security
You can be completely at peace of mind while using the app because your data is protected 24/7. The developers have used SSL encryption and top-level security protocols to ensure the software stays protected from any hackers.
Top-notch technology has been integrated into the system which helps in bringing the most authentic market insights to the users. While trading CFDs, the traders must have accurate current market analysis and past data to make the right prediction. The market information presented on Bitcoin Prime will help you in making a well-researched decision for yourself which will reduce your chances of making a loss.
Bitcoin Prime is free to use. You don’t have to pay a single dollar to use it. The whole software is free. It does not charge any registration fee or commission.
Now that you know about the best investment option available and the best software to begin trading with, don’t wait anymore and kick-start your journey towards the smart path right away!