Crypto CFD as a safe, flexible and efficient trading alternative: explained by Octa broker

June 10, 2025 - 15:54
Crypto CFD as a safe, flexible and efficient trading alternative: explained by Octa broker
KUALA LUMPUR, MALAYSIA - Media OutReach Newswire - 11 June 2025 - Bitcoin keeps reaching new ATHs (All-Time Highs) in 2025 and fosters bullish market sentiments, yet volatility remains significant. This ramps up the risks for crypto traders, who use traditional spot trading tools. Experts at Octa Broker explain how CFDs—Contracts for Difference—allow traders to decrease risk exposure while offering more trading opportunities.
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The majority of crypto traders believe the market will remain bullish in 2025. Bitcoin shows new ATHs, which stimulates altcoin price increases. The Trump administration's crypto-friendly policies are often perceived as triggers for crypto market growth. Yet, despite the crypto-positive U.S. president and the increasing Bitcoin price, the market remains relatively unstable and prone to significant volatility.
Disruptive crypto market and its risks for spot traders
During the past six months, the crypto market has suffered significant turbulence. For example, at the end of 2024, the market capitalisation surpassed $1.6 trillion (Bitcoin excluded), only to later drop by 41% to $950 billion in Q1 2025. At the same time, venture capital investments returned to the levels of 2017-2018. Due to such negative dynamics, macroeconomic and geopolitical uncertainty, and a more restrictive monetary policy, reputable crypto experts like Coinbase institutional assumed that a crypto winter took place instead of the anticipated bull run and an alt season.
Since Q1 2025 showed the worst first-quarter performance in seven years with a dominating downtrend and high volatility, crypto traders struggled to identify potential trades and faced increased risks. What is more, funds were more vulnerable due to increased cyber threats. Chainalysis discovered a 60% rise in crypto hacks in Q1 2025. The total value of lost assets surpassed $2.2 billion. Traders suffered because of exploited protocols, key mismanagement, and mere phishing attacks.
CFDs to combat risks for spot traders
CFDs are overall a safer, more flexible and affordable alternative to traditional tools offered by crypto exchanges. While spot trading limits traders to capitalising on cryptocurrency price increases, CFDs allow them to benefit from the price difference between entry and exit positions. The trend doesn't matter: one can open long positions, assuming price increases, and short ones, expecting an asset value to decrease. Moreover, when opening a contract, a trader doesn't purchase a token. Such an approach allows crypto traders to eliminate several risks.
Limited trading opportunities
Traditional trading tools of the spot market imply that traders purchase an asset at a lower price and then sell it when the value increases. Doing so requires freezing funds until the cryptocurrency is sold. In times of high volatility and downtrend, traders end up in a situation where their trading opportunities are scarce, especially if they invested all their finances before the bearish trend suddenly began. Crypto CFDs don't limit potential trades to the bullish market only: traders can also open positions to benefit from potential asset price decreases.
High market entry requirements
Owning an asset requires significant finances to enter the crypto market. CFDs offer traders leverage: a financial tool that requires a margin, a relatively small deposit, to open a trade for a larger amount of crypto. As a result, traders can enter a crypto market with far fewer resources. The trade conditions are transparent and competitive. Regulated brokers like Octa provide flexible leverage and low spreads on CFD pairs specified before trade opening.
Crypto ownership risks
Since CFDs eliminate the need for direct asset ownership, traders reduce the risk of token losses or theft. There is no need to manage hot or cold wallet accesses, including private keys, mind faulty smart contracts, or exchange security. CFDs are processed across broker infrastructure, which is regulated by reputable financial institutions. They require brokers to set up a reliable trading environment, adhere to responsible trading policies, and provide transparent operations.
Additional benefits of CFDs for active traders
CFDs are known as a more efficient financial tool, especially in times of market volatility. CFD brokers provide access to a wide variety of assets beyond the crypto landscape, thus allowing traders to diversify their portfolios with currency pairs, commodities, and indices. For instance, Octa Broker offers CFDs on over 30 popular digital assets: fiat currency pairs, global indices, commodities, stock derivatives, and shares. All of them are traded across a transparent ecosystem where traders are aware of leverage, fees, and spreads before opening a trade. This enhances risk management and allows to better calculate risks and adjust them, if necessary, before market entry.
Summing up
CFDs allow traders to efficiently combat risk exposure, which is inevitable when operating with traditional crypto trading tools. When entering a contract, one can benefit from a bullish and bearish market and navigate across a transparent environment without actually owning the asset. This also allows traders to minimise security risks like asset theft or loss and facilitates entry into the crypto market. Moreover, CFDs provide access to various asset types that aren't limited to cryptocurrencies. Traders can diversify their portfolio and opt for a wider variety of assets to enhance risk management.
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Disclaimer: This content is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to engage in any investment activity. It does not take into account your investment objectives, financial situation, or individual needs. Any action you take based on this content is at your sole discretion and risk. Octa and its affiliates accept no liability for any losses or consequences resulting from reliance on this material.
Trading involves risks and may not be suitable for all investors. Use your expertise wisely and evaluate all associated risks before making an investment decision. Past performance is not a reliable indicator of future results.
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Octa

is an international CFD 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 improving educational infrastructure and funding short-notice relief projects to support local communities.
In Southeast Asia, 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.

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