Compare the best cryptocurrency spread betting brokers
Where can I find the best crypto spread betting platforms?
Right here. We’ve done all the legwork and compared all the best spread betting crypto platforms, so you can figure out which one to choose.
What is spread betting?
Spread betting involves speculating on the market fluctuations of an asset. Essentially, you’re betting whether the price of that asset (in this case a cryptocurrency, such as Bitcoin) will rise or fall from the bid and ask prices provided by a cryptocurrency spread betting broker.
How does crypto spread betting work?
Once you’ve picked a spread betting broker, log in to your account and pick the cryptocurrency you want to speculate on. From there, check out the quoted buy and sell prices and decide whether you want to bet on the price of the cryptocurrency rising or falling.
Spread betting vs. CFD trading
Spread betting and CFD trading are similar practices. However, there are some differences. Let’s review how each approach works.
- Spread betting. This is a form of derivatives trading. You can use leverage in both spread betting and CFD trading. When trading with leverage, you only need to put down a fraction of the trade’s total value. Both spread betting and CFD trading allow you to bet on the price of an asset either going up or down. Spread betting’s biggest advantage over CFD trading (if you’re based in Britain) is that spread betting is exempt from capital gains tax in the UK, while CFD trading is not.
- CFD trading. A contract for difference (CFD) is an agreement between a buyer and seller that requires the buyer to pay the seller the difference between the current value of an asset (in this case a cryptocurrency) and its value at contract time. Aside from the tax regulations, the other big difference between spread betting and CFD trading is that spread betting is only available in the UK and Ireland, while CFD trading is available around the world.
So I don’t technically ‘own’ the assets I’m trading on a spread betting platform?
That’s exactly right. When spread betting crypto, you’re betting on the price of a cryptocurrency either going up or down, but you never actually own the cryptocurrency in question. That means you don’t have to worry about digital storage or hackers. It also means you can trade faster and take advantage of market fluctuations to land gains.
What should I look for in a spread betting service?
- Find a regulated platform – The Financial Conduct Authority (FCA) oversees and regulates most reputable spread betting brokers in the UK. Whatever cryptocurrency spread betting platform you choose, make sure it’s regulated by the FCA.
- Variety of payment methods – Pick a spread betting platform that allows you to deposit and withdraw funds in whatever way best fits your needs. Bank transfers are a common way to fund spread betting accounts, but some platforms will accept newer payment methods, such as cryptocurrency.
- Suitable deposit and withdrawal limits – Different spread betting platforms offer deposit and withdrawal limits. Pick a spread betting platform that’s right for the level of trading you want to do, whether it’s small bets or much larger value trading.
- Good reputation – User reviews are often the best way to gauge a spread betting platform’s reputation. Take the time to scrutinise those reviews so you know your chosen platform ticks all the boxes, from customer service to design and ease of use.
- Design and ease of use – Speaking of design and ease of use… UX is an important factor to consider when choosing a spread betting platform. The better designed a platform is, the smoother your user experience will be. Ease and speed of use are particularly valuable factors when the moment of truth comes and you’re ready to place a bet.
- Variety of cryptocurrencies – Whichever cryptocurrency spread betting broker you choose, make sure it offers the variety you’re looking for. Most platforms will have crypto options that go well beyond just Bitcoin.
What are the tax laws on spread betting profits?
Is online spread betting safe and secure?
Spread betting is no different to CFD trading, stock market investing or other trading methods in terms of security. If you pick a reputable, regulated trading platform, your trades will be secure. Use our thorough crypto spread betting broker reviews to find the one you like best.
Can I bet on multiple assets?
Yes you can. Spread betting lets you bet on multiple assets, in this case multiple different kinds of cryptocurrency. Plus you don’t need to worry about storing your crypto in a secure digital wallet, since you’re only betting on a cryptocurrency’s price fluctuation, rather than owning the cryptocurrency itself.
Do crypto spread betting platforms charge fees?
Cryptocurrency spread betting brokers usually don’t charge fees, they make their money from the spread of your bet. The wider the price spread, the more money they make (and the bigger the gain you have to net just to break even).
What are the advantages of using an online platform?
Spread betting platforms allow you to make bets instantly. Choose the cryptocurrency you want to bet on, and the platform will handle the rest.
And what are the drawbacks?
In the crypto world, the term “HODL” has come to signify the big benefit that can come with owning currencies such as Bitcoin. Spread betting doesn’t allow you to actually own or hold crypto. Also, spread betting is more complicated than simply buying a physical asset at a certain price and selling down the road, so you’ll need more technical financial knowledge to take full advantage of a spread betting platform.
Should I use a spread betting broker?
That’s up to you. If you want to bet on Bitcoin quickly and simply without having to worry about hackers stealing it, using a spread betting broker is a great option.
Any questions? Check out our spread betting FAQ before you start trading.
A City of London investment banker named Stuart Wheeler turned spread betting into an established investment concept. He started a firm called IG Index in 1974 that offered spread betting on gold. Further assets were soon pursued by spread bettors, with cryptocurrency gaining in popularity as Bitcoin started to take off about a decade ago.
Some of the most common cryptocurrencies found on spread betting platforms are Bitcoin, Bitcoin Cash, Ether, Ripple, and Litecoin.
Spread bets come with a fixed time period. Some stay open a day, others can stay open as long as a few months. You can also choose to close your spread bet before the set expiry date.
Aside from leveraged trading, which has the potential to significantly inflate your losses, you also have to overcome the price spread just to break even.
Usually, the more popular the asset being traded, the tighter the price spread. Of course, you shouldn’t be restricted in your choice of spread betting assets. Find a spread betting platform that offers the tightest spreads.
If you guess right, you’ll make a lot more money than if you only placed a standard bet with your own money.
If the direction of the price fluctuation goes against your prediction, you’ll lose a lot more money than if you’d bet without leverage.
A standard stop-loss order will limit the size of your loss. With a standard stop-loss order, your trade will close at the best available price once the stop value has been reached. Just be aware that a volatile market can result in the position being closed at a worse price than your set stop price.
Yes. You can place a guaranteed stop-loss order, which ensures that the price you set ends up being the same as the price at which your position is closed. The drawback is that you’ll have to pay a premium to execute a guaranteed stop-loss order.
Arbitrage is the process of buying low and selling high on a financial instrument at the same time. The best way to find a spread betting arbitrage opportunity is by looking for two spread betting companies that are taking two different stances on the same asset. Arbitrage enables a trader to make a guaranteed profit, whichever way the market moves.
- 1. Compare the best cryptocurrency spread betting brokers
- 2. Where can I find the best crypto spread betting platforms?
- 3. What is spread betting?
- 4. How does crypto spread betting work?
- 5. Spread betting vs. CFD trading
- 6. So I don’t technically ‘own’ the assets I’m trading on a spread betting platform?
- 7. What should I look for in a spread betting service?
- 8. What are the tax laws on spread betting profits?
- 9. Is online spread betting safe and secure?
- 10. Can I bet on multiple assets?
- 11. Do crypto spread betting platforms charge fees?
- 12. What are the advantages of using an online platform?
- 13. And what are the drawbacks?
- 14. Should I use a spread betting broker?
- 15. FAQs