# Bitcoin Traders Can Now Trade on Lows AND Highs! Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2018-01-17 Category: INVESTING Category URL: https://financedigest.com/category/investing Meta Title: Reduce Tax on Bitcoin Profits with Spread Betting CFDs Meta Description: Reduce tax, securely trade, and profit from Bitcoin's volatility. Discover the benefits of trading Bitcoin with CFDs at AxiTrader. Tags: featured Tag URLs: featured (https://financedigest.com/tag/featured) URL: https://financedigest.com/bitcoin-traders-can-now-trade-on-lows-and-highshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/fd170118-1-2-1736843071865-compressed.jpg) - **Traders shorting Bitcoin with CFDs now have an investment option for when they anticipate the value of the currency going down (AxiTrader)** - **Spread Betting CFDs provide a way for many traders to reduce or eliminate tax on profits (AxiTrader)** - **New ways of trading Bitcoin reduce the stress of keeping the currency safe in digital wallets (AxiTrader)** [Bitcoin trading](https://www.financedigest.com/five-ways-to-make-money-trading-bitcoin.html "Five Ways to Make Money Trading Bitcoin") has truly hit the mainstream, with a constant flow of news stories and global coverage. Dinner-table conversations about Bitcoin and other cryptocurrency were widespread and lively for many families over the recent [holiday season](https://www.financedigest.com/hasbro-ramps-up-toy-supply-for-holiday-season-to-beat-shipping-delays.html "Hasbro ramps up toy supply for holiday season to beat shipping delays"). Many of those chats clearly [resulted in people](https://www.financedigest.com/uk-pm-sunak-election-results-show-people-want-us-to-deliver-for-them.html "UK PM Sunak: Election results show people want us to deliver for them") choosing to get involved with cryptocurrency for the first time. This is something demonstrated by the fact that several crypto exchanges are struggling with verifying a backlog of new members, with some even temporarily [blocking new sign-ups as reported in Business](https://www.financedigest.com/how-china-became-big-business-for-twitter-from-blocking-to-blue-checks.html "How China became big business for Twitter, from blocking to blue checks") Insider. Bitcoin [traders old and new no longer only have the option](https://www.financedigest.com/cryptoverse-bitcoin-traders-like-their-options.html "Cryptoverse: Bitcoin traders like their options") of buying Bitcoin and hoping its value increases. New [trading instruments for Bitcoin, such as CFDs (Contracts for Difference), well established in more traditional trading markets](https://www.financedigest.com/online-trading-and-stock-markets.html "Online Trading and Stock Markets"), are now emerging on the cryptocurrency scene, providing traders with more ways of getting involved, and new methods of making their investments. **_“CFDs allow traders to trade based on the value of Bitcoin going down, as well it going up.”_** **_Sanjeev Joshi, Head of UK ,_** [**_AxiTrader_**](http://r20.rs6.net/tn.jsp?f=0015Rvr6DwVGEqzoCcuskH5Do4RaS8Y8_BkNPfnYr1k5m4U5QjKNUcjJaCY4cvH1N3dPU1Sld2q-Tt6Z4lOnBSP7ZN8puhMwKeuQfQnsNcpMIHBEPuROF13J6uM0UaKQK02Bf2zoUt43q_ONWaBQVovMkfWfxilEPw_CFRKevZcsgMPdClVZoESzA==&c=PvH4rzuN3lOQbVwu8DBtQHAI6emiBKAMcntaRnz7oIhytwQ6oy6Q8Q==&ch=LEq0hEQVlhLFVsL3F43GPqHaw4WYHnfdEbdnnahikNdAUs9buXhTqg==) Plenty of the people entering the crypto marketplace for the first time are intimidated by the complexity of coin exchanges, transfer fees and [digital wallets](https://www.financedigest.com/digital-wallets-bring-value-to-banks-and-retails.html "digital wallets"). Trading Bitcoin using CFDs eliminates much of this complexity, because the trader isn’t [required to “own” the digital](https://www.financedigest.com/how-to-fulfil-the-digital-transformation-requirement-in-banking.html "How to fulfil the Digital Transformation Requirement in Banking") coin and be responsible for its safe electronic storage. While some crypto traders attempt to make money when cyptocurrencies like [Bitcoin fall](https://www.financedigest.com/bitcoin-falls-to-22-month-low-as-stock-markets-tumble.html "Bitcoin falls to 22-month low as stock markets tumble") in value (by selling at a perceived high and buying back in at a lower value), these strategies are increasingly thwarted by long transaction times and congestion on Bitcoin’s blockchain network. CFDs introduce a legitimate way to properly “short” the currency. **_“Trading Bitcoin with a fully [regulated global](https://www.financedigest.com/be-simple-in-bank-capital-bank-of-england-tells-global-regulators.html "Be simple in bank capital, Bank of England tells global regulators") brokerage is an attractive alternative to learning the intricacies of how cryptocurrency exchanges – and coping with increasingly frequent delays and downtime.”_** **_Sanjeev Joshi, Head of UK ,AxiTrader_** [Trading Bitcoin via CFDs also allows traders additional leverage and profit](https://www.financedigest.com/forex-trading-how-to-trade-currencies-for-profit.html "Forex Trading: How to Trade Currencies for Profit") potential. It’s possible to use 10:1 leveraging and trade ten times more Bitcoin than with physical trading. While leverage can be a great tool to multiply returns, it can also work against traders by multiplying losses. The volatile nature of [cryptocurrency makes it all the more important](https://www.financedigest.com/the-importance-of-nfts-in-the-cryptocurrency-world.html "The Importance Of NFTs In The Cryptocurrency World") for investors to be aware that leverage is a double-edged sword. The best part for many traders is the tax implication, especially as many individuals begin to discover the realities of [capital gains tax](https://www.financedigest.com/capital-tax-hikes-looming-how-companies-soften-the-blow.html "Capital Tax Hikes Looming: How Companies Soften the Blow") in the wake of celebrating their profits. In some countries, CFDs are treated differently from physical trading, resulting in serious savings. Financial advisors can advise on [tax](https://www.financedigest.com/g20-to-back-global-corporate-tax-deal-says-french-finance-minister.html "G20 to back global corporate tax deal, says French finance minister") laws in individual jurisdictions. For the many people seeing real financial [gain due](https://www.financedigest.com/wi-fi-semiconductor-chipset-market-gain-impetus-due-to-the-growing-demand-over-2015-2025.html "Wi-Fi Semiconductor Chipset Market Gain Impetus due to the Growing Demand over 2015-2025") to Bitcoin trading, the opportunity to hold on to an additional 20% (or more) of the money they make will be the icing on the cake. **_“With no GST tax in Australia on Bitcoin CFD earnings, and no capital gains tax on spread betting in the UK, a great many people can [keep far more Bitcoin profit by trading](https://www.financedigest.com/commodities-trading-houses-help-keep-russian-oil-flowing.html "Commodities trading houses help keep Russian oil flowing") with CFDs.”_** **_Sanjeev Joshi, Head of UK ,AxiTrader_** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---