Cryptocurrencies are highly volatile and therefore risky assets, not suitable and/or appropriate for some clients. Anyone who plans to trade crypto CFDs should have deep knowledge of the blockchain industry. Please understand the risks before investing.
Price
volatility
Cryptocurrencies are extremely volatile. These assets are vulnerable to price instability triggered by unexpected events or shifts in market sentiment. Besides, market data and price feeds are subject to disruptions because of the internal rules of crypto exchanges or their pricing engines.
Lack of
regulation
Cryptocurrencies are traded on non-regulated decentralized digital exchanges, meaning that the market depth is limited to what is available in the order books of such exchanges, which are not regulated and do not provide the relevant protections.
Charges and
funding costs
Charges tend to be significantly higher than for other CFDs products. Fees can include the spread, funding charges and commissions. You should assess the likelihood of generating a profit versus the impact of these fees.
Suspension
of trade
Crypto exchanges may introduce trading suspensions or other actions that could halt trading on such exchanges, and/or the price and market data feed may become unavailable.
Regulatory
bans
Blockchain technologies, which are the backbone of any cryptocurrency, are subject to regulatory bans, hard forks, hackers’ actions, mining cartels, and other malicious actors, which may cause further market disruption.