London, UK, 5th Feb 2022, Binary News Network, The beauty of investing in cryptocurrency is that you can invest with little to no cash out of pocket. FinancialCentre broker, Steve Arcos, there are many ways to get into the game using fiat (aka traditional) currency, like through your bank account, credit cards or even PayPal.
However, there are other ways to profit from the rapid rise of cryptocurrencies. One popular method is to trade cryptocurrency pairs using an online trading platform. Another is to “invest” in a cryptocurrency mining pool, where you combine your computing power and split the rewards based on how much computing power you add.
Another method that has been gaining popularity over the past several months is called Bitcoin investing through Contracts for Difference (CFD), which enables traders to invest in the price movement of Bitcoin without buying it.
CFD’s are advanced financial instruments that allow traders and investors to trade “highway spreads” on underlying assets, like cryptocurrencies and commodities. For example, say you want to get into the cryptocurrency game but don’t have enough cash to buy a full Bitcoin — trading through CFD’s lets you take advantage of the market without investing a penny.
Most people are familiar with CFD’s, but another method allows investors to profit off cryptocurrencies called Contracts for Difference, or CFD’s. This option enables traders to invest in the price movement of Bitcoin without buying it. It was recently brought to our attention that Plus500 allows traders to take advantage of bitcoin volatility in a big way. The process is simple, and I’ve tested it out on my own over the past several days. Here are the basics of what you’ll need to get started: A funded Plus500 account (I set up an E-trade account for this demonstration), Basic knowledge of cryptocurrency trading (If you don’t, Plus500 has plenty of resources to learn)
The best part about CFD’s is that traders can set up “limit” and “stop-loss” orders. Limit orders mean that the trader has full control over his/her losses by setting a predetermined bottom for each trade. Traders can also get out of their positions early using “stop-loss” orders. Also, if traders notice unusual volume in the market, they can always exit the position right away before it’s too late.
With all that said, here are the top three cryptocurrencies that I think could explode in value by mid-to-late 2022. If you’re interested in profiting off the excitement surrounding these new coins through CFD’s, keep reading…
Bitcoin (BTC) – $38,512.70
Many investors are piling into BTC as it continues to smash past new price records. In fact, as of this writing, BTC just set a record after climbing to $5295.27 per coin. That’s up from around $2000 currently last year — and $1000 in early 2017.
That said, it might be smart for readers to wait until BTC reaches its next peak before investing through CFD’s because there could be some resistance shortly. If you want to get in on the action and don’t have quite enough cash to purchase a full BTC, Plus500 might be a good option because it allows traders to invest in Bitcoin without buying it.
Litecoin (LTC) – $109.72
This one is another favorite among cryptocurrency traders and critics. Litecoin was developed as a “lighter” alternative to Bitcoin, and it has since built a loyal following.
LTC’s market cap is going parabolic — or vertical if you want to be technical about it — as the world gains interest in cryptocurrencies en masse. So many people have been looking to get their hands on LTC recently that it was difficult to buy significant amounts of the coin.
As a result, LTC’s price shot up from around in early January to a new all-time high of just over $109, making it one of the best “buy” opportunities for crypto investors looking to get into CFDs through Plus500.
Ripple (XRP) – $0.60
I think the third cryptocurrency is ready to blast off, and it’s one of the few “altcoins” that was developed for a specific use case — Ripple updates financial ledgers across networks in real-time.
As you can see from the screenshot above, XRP’s recent surge is causing some major growing pains. Fortunately, the coin has enough liquidity to handle increasing transactions without too much price disruption.
Like Litecoin, it could be tough now to get a significant amount of XRP through CFD’s because so many people are trying to buy the coin at once — but it also means that XRP could climb as more traders look to get in on the action.
Once again, if you’re interested in investing through CFD’s and want to take advantage of rising cryptocurrency prices without having to buy them outright, this strategy just might be a good way to achieve that goal.
All three of the cryptocurrencies listed above have a ton of upside potential in the coming years. Bitcoin is the original cryptocurrency and is still king of the mountain, but I think Litecoin, and Ripple could eventually surpass it in terms of value.
Bitcoin is well known and has a large following, but I think Litecoin could be a better investment because it’s faster and has lower transaction fees. Ripple is also a great investment because its technology is already being used by some of the world’s largest banks.
As the public continues to warm up to cryptocurrency, I can see these three coins making some major gains shortly. If you’re interested in testing out my theory on your own, simply set up an account with Plus500 or one of its competitors.
Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.