Brokerage Uses Contracts for Difference to Trade Bitcoin

One of the leading cryptocurrency traders at an online trading service eToro – Jay Smith – is not fazed by the volatility of the market. He welcomes it.

An early investor in bitcoin, Smith has moved to other cryptocurrencies and tech stock, diversifying his portfolio over the years. What’s more interesting, eToro – the social network for the traders – uses contracts for difference commonly known as CFDs. This adds a lot of risk to an already unstable market, allowing investors to bet on the cryptocurrency prices. While the company claims to protect the users from losing more than they originally invested, the risks are considerable. This does not stop people from following Smith on the platform and copying his every move.

A school dropout, Jay Smith has been involved with eSports from a very early age and was quick to recognise the value and potential of cryptocurrencies. He went on to purchase a number of digital tokens, earning on the price differences. In his opinion, CDFs and cryptocurrency are a natural fit, and with the protection provided by the platform and experienced investors as guides, there is no harm in trying.