But how best to profit from the changes occurring in the crypto market and what avenues of investment to choose? The experts at Octa, a broker with globally recognised licences, offer a rundown of leveraged crypto trading, one of the most accessible ways to put the crypto hype train to use.

The expanding cryptocurrency landscape is largely driven by increased adoption, incremental changes in regulation, and ever-growing institutional interest. Given that, the sudden peak in Bitcoin's price in 2024 was caused by the results of the U.S. presidential elections rather than long-term and well-established trends, experts claim.

Whatever their reason, intense price fluctuations invariably cause increased market activity. Traders use all means at their disposal to use this window of opportunity—and here are two of the most popular ones.

One goal, many paths
Cryptocurrencies are in high demand as a tradable instrument. Of the many crypto trading options on offer, two seem the least challenging and, therefore, most attractive for less experienced traders: trading cryptocurrencies via contracts for difference (CFD) and doing it using a crypto exchange.

Crypto CFDs are typically traded through financial brokers, enabling traders to access larger positions with limited capital. This approach increases trading potential but also amplifies the associated risks. In contrast, trading on crypto exchanges involves the actual ownership of digital assets, which comes with additional requirements for asset management and security.

Crypto exchanges
Crypto exchange users buy and sell digital instruments directly, storing the obtained assets in their e-wallets. When trading via crypto exchanges, gains and losses are based directly on tradable assets' price fluctuations when trading via crypto exchanges. However, this method has its caveats since it typically involves dealing with various fees depending on the platform's rules. On top of that, traders expose themselves to additional risks associated with digital asset storage.

While owning cryptocurrencies provides greater flexibility in managing digital assets, it also adds complexity to the process. Additionally, it significantly restricts opportunities to profit from falling markets, potentially impacting long-term strategies and overall returns.

Trading crypto using CFDs
Contracts for difference (CFDs) are financial instruments that allow traders to profit from an asset's price movements without owning it. Instead, traders enter into an agreement with a broker to exchange the difference between the contract's opening and closing prices.

With CFDs, traders can avoid any extra efforts related to maintaining personal e-wallets, ensuring the safety of personal data, and managing their transactions. Instead, brokers facilitate trading by minimising risks and offering more accessible pricing.

It is worth noting that digital platforms used for CFD trading are usually straightforward and user-friendly, which makes it easier for retail traders to track and respond to market movements.

Leverage: CFD trading augmented
Brokers with CFD assets on offer usually provide a number of leverage options, allowing to control a more significant position with a smaller sum. Leverage has its pros and cons. It can boost the trading process rather than guarantee gains. While it magnifies the profits, it proportionately increases the losses, so traders should be careful with it and use it with risk management tools.

Trading crypto via CFDs allows to benefit from market ups and downs, fully tapping into the potential of the hottest asset type to date. With time and continuous learning, trading crypto can become a consistent source of supplementary income to cover everyday expenses and progress towards long-term financial goals.
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Octa

Octa is an international broker that has been providing online trading services worldwide since 2011. It offers commission-free access to financial markets and various services used by clients from 180 countries who have opened more than 52 million trading accounts. To help its clients reach their investment goals, Octa offers free educational webinars, articles, and analytical tools.

The company is involved in a comprehensive network of charitable and humanitarian initiatives, including the improvement of educational infrastructure and short-notice relief projects supporting local communities.

In the APAC region, Octa received the 'Best Trading Platform Malaysia 2024' and the 'Most Reliable Broker Asia 2023' awards from Brands and Business Magazine and International Global Forex Awards, respectively.