Where is crypto spread betting allowed?
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The handy guide explains what you need to know about the rules around where you can spread bet crypto. Read on to learn if spread betting is legal where you live and whether you should use the method to trade crypto.
Is spread betting legal?
It depends on where you are in the world. It’s completely legal in the UK and much of Europe, but it’s banned in the United States and Australia. The main reason for this is that spread betting is classed as a form of gambling, and the US and Australia in particular have strict laws against gambling, at least for now.
You may also find that there are limits on who can spread bet even in countries where it is legal. Even in the UK and Europe, spread betting is considered gambling and regulated as such. With that said, in the parts of the world where it is allowed, spread betting is an extremely popular way to trade financial markets.
Where can I trade crypto using spread betting?
The best place to trade crypto using spread betting is in the United Kingdom. That’s because it’s been legal and regulated for a long time. As mentioned above, its status differs depending on where you live, meaning you won’t be able to use a spread betting account in certain parts of the world.
Cryptocurrency trading is also illegal in some countries, so even if spread betting is allowed where you live, you also need to ensure crypto is allowed too. For most regions, spread betting is not allowed. Only the United Kingdom and a few European countries let you trade crypto via spread betting.
As rules and regulations often change, it is recommended that you check with your jurisdiction’s regulatory body to find the most up to date information. There are lots of other options available if you can’t use spread betting. For example, crypto CFDs are very similar and offer many of the same benefits.
Should I use a crypto spread betting account?
If it’s allowed where you live and you want to trade cryptocurrencies, then you should certainly consider using it. There are many benefits of crypto spread betting compared to other forms of trading. For most people its tax-free status is a big draw, however spread betting is also one of the most cost-effective ways to trade the crypto market.
You will pay no commission on your trades and you don’t need to worry about storing your coins in a wallet. When you spread bet you get to use leverage and trade on margin, so you don’t need to put up a lot of money to get started.
What should I do now?
If crypto spread betting is allowed in your country you may now want to start using it to trade. Before you get going you will need to use a specific type of broker that offers spread betting. As the crypto market is largely unregulated there are lots of scams out there so it’s important to take the time to research any platform you want to use.
Here on Invezz, we have lots of unbiased reviews for many of the best known spread betting brokers. You can check them out in our dedicated review section on our website. We also have pages on a wide range of spread betting and crypto related topics, including strategies and information to help you make the best decisions.
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