Shortly after integrating PayPal (NASDAQ: PYPL) as a payment option into its platform, Crypto.com rolled out Contracts for Differences (CFDs), a fresh derivative trading feature for cryptocurrencies on its app. The aim was to enhance trading opportunities for over 40 digital assets. CFDs mimic trading an underlying asset without the need to own it, providing exposure to price movements for users to predict and potentially profit from correct forecasts. These CFD trades are currently accessible 24/7 in specific regions like Barbados, Chile, Egypt, and more, with plans to expand to the US, UK, and EU countries.
According to the Crypto.com team, CFDs offer leverage benefits, allowing users to maximize their capital by trading with only a fraction of the position’s value. Additionally, they support portfolio diversification and provide a seamless, real-time, and mobile-friendly trading experience. Users can leverage up to 20x with CFDs in the Crypto.com App and access contracts for a wide range of cryptocurrencies, the most extensive available anywhere.
To get started with CFDs, users simply need to deposit funds into their CFD Wallet, choose the underlying asset, decide on a long or short position, input the contract quantity, and confirm their position by placing an order, which can be monitored on the price chart. While leveraging amplifies potential profits, it also heightens the risk of losses, as both gains and losses are calculated based on the full position size, not just the deposit amount.
The recent introduction of CFDs is part of Crypto.com’s ongoing platform enhancements, such as the partnership with PayPal to enable easier trading of cryptocurrencies through the platform for US users. Additionally, Crypto.com obtained a Payment Service Provider License from the Central Bank of Bahrain, expanding its regulatory compliance and allowing for the broader provision of e-money and fiat-based payment services across the region.