In cryptocurrency trading, investors profit from fluctuations of exchange rates without physical buying or selling a cryptocurrency. If traders expect prices to fall, they open a sell deal, whereas if they anticipate a rise, they open a buy deal. If their expectations are met, then traders get profits on the difference of buying and selling price. This trading instrument is called a contract for difference (CFD).
When traders buy or sell cryptocurrencies, they make a deal with other traders by placing the corresponding orders on the exchange. As a result, a cryptocurrency is transferred from one trader to another. After that, this money can be withdrawn or used for conducting one more transaction.
