The Future of Spread Betting: Cryptocurrencies

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Spread Betting Cryptocurrencies

Currently a fresh wave of interest in spread betting is pulsing through the world and this can be easily traced to the cryptocurrency phenomenon. With the opening of two bitcoin futures markets in December 2017 the future has begun for speculators wanting to straddle the worlds of traditional trading and bitcoin investment.

Why Cryptocurrencies?

In case you haven’t been paying attention, cryptocurrencies are big news. Countries like China and South Korea have been scrambling to ban them while other nations, such as Japan and Canada, have fully embraced these new forms of payment and are finding ways of formally incorporating them into their economies.

Why so much fuss? Well, the phenomenal growth in value of bitcoin is the driver here. Add to this the fact that cryptocurrencies represent a truly revolutionary means of payment and you have a very exciting opportunity. The only problem is that it is also a highly volatile investment.

Benefit from Bitcoin with Buying Bitcoin

Because this is such a new market, and one which surges with all the tempestuousness of a teenager, the world of cryptocurrencies is well suited to spread betting. That’s why the bitcoin futures markets are such a mouth-watering prospect for experienced investors.

There is now no need to physically buy any bitcoin in order to make a profit. There is also no need to invest in costly hardware or spend time understanding digital wallets and other bitcoin necessities if you want to participate. What’s more, the tax benefits and savings in terms of stamp duty are the same as for the other forms of futures trading.

An Uncertain Future  

The future, however, isn’t all rosy. The European Securities and Markets Authority is considering a ban on high-risk binary options – including bitcoin. Even if that doesn’t happen, there are tax implications to consider, as the current exemptions in terms of taxation and stamp duty may also come under scrutiny.

What’s more, many investors should keep in mind that while leveraging offers the potential for huge profits, there is also the flipside of the bitcoin to consider – the capacity for massive losses to be incurred.

With all that considered, this is still a highly exciting market that offers tempting wins without the necessity to plunge into bitcoin ownership.

Remain Level Headed

If you are considering choosing bitcoin spread betting, it might be a good idea to rely on a trusted broker who can give you the charting and analysis tools you need to stay on top of your trades. And with that in mind, the best tip we can give you when it comes to bitcoin futures is to keep your wits about you and keep a close eye on the market.