BTC Exchange VS Coin Trading

BTC Exchange VS Coin Trading

BTC Exchange VS Coin Trading

Can you make money from BTC exchanges and coin trading?

Yeah, you can technically. If you were to sign up to a BTC exchange and then try to sell some bitcoins for high price and buy when the market is low, you would make a good profit. That’s because of the volatility of the bitcoin markets, the price can vary by almost $100. If you’re pretty quick and lucky to find sellers at the right time, you can make a good profit on every sale. It’s a pretty simple procedure.

It’s pretty much the same principle in coin trading, the difference is that the platform isn’t connected to the real world. That is, you can buy virtual ‘CFDs’ of bitcoin, not Bitcoin themselves, which vary in price throughout the day. We’ll explain this further on since it’s quite an innovation in trading.

What are BTC exchange and coin trading?

It’s pretty straightforward; BTC stands for Bitcoin and a BTC exchange lets you exchange bitcoins online against most of the real-world currencies from the comfort of your bed.

A BTC Exchange is pretty much an eBay for bitcoins. You can sign up, and look for good offers from legitimate sellers, then buy or sell bitcoins. Sellers put in a minimum price that they need to sell their bitcoins at. The buyers put in a maximum price for the Bitcoins they want to buy. The platform then connects both these people, given that their minimum and maximum prices agree, the exchange can be done with the help of the exchange.

On BTC exchanges, you can buy real bitcoins.

A coin is a term often used to describe any online currency, so major digital currencies such as Bitcoin or Ethereum are all coins. A coin trading website is essentially a CFD trading website, which also offers CFDs on cryptocurrencies.

CFD, contracts for difference, simply allow you speculate or ‘bet’ on the future movement of the price of the financial instruments, such as gold or Bitcoin, regardless of whether current prices are rising or falling.

What is CFD trading?

CFD trading can be explained as a ‘bet’ in which you think the gold price will rise, so you would buy 1000 share CFDs.

Now, if the price of gold increases over the spread you will make a proportional profit however if it decreases, you would make a proportional loss.

However, these platforms don’t have any real-world market access, which means you won’t actually own a bitcoin, you’ll be betting on the possibility that the price rises. That means you can’t technically use a ‘bitcoin’ that you buy on the website for much other than selling it later on.

Which one is better to make money quickly?

Signing up to most of these websites is pretty easy, you input your personal email and your account will be created. To make money, however, you have to invest a certain minimum deposit which depends from website to website. Also, let’s imagine you were pretty lucky one day and managed to make a profit of $1,000. In order to withdraw this money so that you can actually use it, you need to verify yourself on the platform by providing national ID or equivalent. Then you can transfer your profits to your banking account or Paypal.

The major difference between these two websites is that one of them is real-world trading whilst the other is an online form of trading. Therefore, they have some essential differences but in terms of profit-creation, are the same.

BTC Exchange Coin Trading
  • No leverage trading
  • Leverage trading
  • Real-world assets
  • CFDs of assets
  • One asset
  • Diversification


What’re the advantages of using a CFD trading platform?

Leverage trading is an advantage that CFD trading platforms offer if you want to make a quick buck. Leverage trading is like you can bet as a percentage of a larger trade, but you would get profits or losses based on the large trade. So, you could make a much larger profit from much lesser funds in your account. Be careful, however, this brings on many risks for beginner traders and one should always be very careful with trading in leverage.

Another advantage that coin trading websites offer is diversification. Most of these websites have CFDs of some basic digital currencies. They usually also offer other assets such as share CFDs of major companies, commodities, and even indices. That makes it easier for you to diversify your trades and secure your funds in good investments.

A BTC exchange is essentially trading real world bitcoins. Unfortunately, it can add a degree of risk in terms of hacking and fraud whilst storing the bitcoins. CFD trading eliminates this fear since you trade in CFDs of the commodity rather than the commodity itself.

Since a regular CFD trading website provides over a hundred different types of CFDs, it’s pretty easy to trade in whichever market interests you on the same website.

You’re ready to trade!

If you’re interested in the digital currency market because of the quick profits, you can invest into a CFD trading platform. It’s easier, more practical and offers much better investor-centered services compared to BTC Exchanges.

Here’s a table with some of the major CFD trading platforms available today.

(add table)

WikiCrypto recommends Plus500 and eToro as one of the best CFD trading platforms that are available today.


Plus500 is the world’s leading trading CFD platform for financial instruments like commodities, stock, and market indices. The Plus500 website offers several features that set it apart from the rest. The risk-management tools that are offered are efficient ways to make sure that your money is not at risk. The greatest feature on Plus500 is that it displays most of the world’s financial instruments market prices on the website in real time. This allows for better monitoring of the trades that you make. The graphical representation on the website as well is great because it is very easy to use. Not only that, it also helps you make your future speculations.

Here’s a link to Plus500.


eToro is a Coin trading website founded in Tel Aviv, Israel in 2006. It was founded by two brothers as a website for social exchange between traders. This, however, grew into an idea that they could create a trading website and pair the social aspect. Making it a sort of Facebook for Coin traders. On the website, you can trade Coin CFDs and connect with your favorite traders. Yes, you can follow them and their trades! Yes, you can actually copy trades that high-earning traders are doing; since all of their trades are posted on their wall. You can comment on a trade, start a discussion and even message traders. That’s what sets eToro apart from other CFD trading websites since eToro has a strong community within it which helps beginners to start trading and helps create a strong network.

Here’s a link to eToro.

Hopefully, you liked reading WikiCrypto’s guide to BTC Exchange vs Coin Trading in order to make money. This essential information will provide you the resources to make sure that you can choose what trading is better for you. 

Check out our guide to the best bitcoin trading strategies in 2017.

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About Article Author

Martina Kelowsky
Martina Kelowsky

Currently working on her Master Degree in Economics & Computer Science she lives in Russia. She is a Bitcoin Enthusiast since 2013 and Investor in various ICO since 2014. She aims to democratize a future where money is decentralized and transaction anonymous.

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