Shortly after integrating PayPal (NASDAQ: PYPL) as a payment option, Crypto.com unveiled CFDs (Contracts for Differences), a fresh cryptocurrency derivatives trading feature within its app. This introduction aimed to enhance trading possibilities for over 40 crypto assets. CFDs enable users to speculate on price movements without owning the underlying asset, allowing for profit based on accurate predictions. The availability of CFD trading is currently limited to certain regions, including Barbados, Chile, Egypt, El Salvador, Ghana, India, Kenya, Mexico, Philippines, and Vietnam, with plans to expand to the US, UK, and EU nations.
According to Crypto.com, CFDs offer the benefit of leverage, enabling users to amplify their capital by depositing only a fraction of the position’s value to initiate trades. Additionally, CFDs support portfolio diversification and provide seamless real-time trading on mobile devices. Users can leverage up to 20x on CFDs within the Crypto.com App, with options for contracts on more than 40 different cryptocurrencies, surpassing offerings of any other platform.
To engage in CFD trading, users simply need to fund their CFD Wallet, select the underlying asset, choose to go long or short, input the contract quantity, and confirm the trade to monitor on the price chart. While trading with leverage can increase potential profits, Crypto.com cautions users about the amplified risk of potential losses, as gains and losses are calculated based on the full position size rather than just the deposit amount.
Furthermore, this recent enhancement on the platform follows a series of upgrades, including the partnership with PayPal to enable convenient crypto asset trading for US users. Additionally, Crypto.com has obtained a Payment Service Provider License from the Central Bank of Bahrain, marking a significant milestone in regulatory compliance and allowing the expansion of e-money and fiat-based payment services across the region.