How much money do you need to start trading bitcoin cfds?
One key advantage of trading Bitcoin CFDs (or any CFD) is that a relatively small amount of money can be enough to kickstart a trading journey – thanks to the use of leverage, that amount can be as low as $100. For example, if you applied leverage of 100:1 to an account with $1,000 in it, you could open a position worth $100,000. Note that while this has potential for large profits, leverage can also magnify potential losses.
When deciding on how much money to use in your trading, it’s important to consider your overall risk tolerance level. Some asset classes are riskier and more volatile in nature, while some are more stable and see less price fluctuation. Having a good understanding of your risk tolerance helps you gauge which markets to look at and how much money you should be investing.