With the growth of cryptocurrency, many people want to get into the field and do what they can to make a profit. In addition to the option of actually buying crypto and holding it in a wallet as an investment, there are various ways to trade or invest in cryptocurrency without actually owning it. While the most common is via a CFD (contract for difference), spread betting is another option. In either case, you do not actually have to own the cryptocurrency to make a profit from it, but there is still risk involved.
Spread betting is a type of derivative strategy, meaning that you do not actually own the asset that is underlying the bet. Instead, you speculate based on whether you think the price of the asset will fall or rise. When looking at a spread bet, you will see two price quotes. One of these is the bid price, meaning the price that you can buy the crypto bet at. The other is the ask price, which is the price that you can sell at. As with other types of derivatives, the term “spread” refers to the difference between the bid and ask prices. This spread is where brokers make their profits, allowing them to avoid charging any commissions.