Press Release: The cryptocurrency market can offer investors exceptional returns, but exceptional losses can come hand in hand. Hong Kong-based bitcoin exchange Bitfinex proves this true, losing $71M worth of bitcoin in hack attack last week. If hacking is a cost of trading cryptocurrency, then spread betting could circumvent that risk while exploiting market volatility to offer potentially extravagant returns.
Following $71M hack Bitfinex elected to spread losses amongst all customers, charging investors 36% of their deposit. All Bitfinex traders suffer the haircut irrespective of which digital currency they trade, including those who have not invested in bitcoin.
This is not a standalone incident. In February 2014, the then-world’s largest bitcoin exchange Mt. Gox suffered catastrophic $480M losses at the hands of hackers. A few weeks later Mt. Gox filed for bankruptcy and investors lost their funds.
Mt. Gox is a good example of the perils of bitcoin. Industry insiders claim hackers had been skimming from the exchange for years, and yet Mt. Gox continued to grow in popularity. Hacking seems to be an accepted by-product of doing business with bitcoin.
Bitcoin exchanges are hotbeds for potential hackers, and there continues to be a lack of security – or legal recourse – to protect digital currency owners. Experts have long since recommended investors minimise bitcoin exchange deposits for this reason.
Hacking scandals aside, one thing is clear. Investors are loath to turn away from the cryptocurrency trading markets, and with understandable reason. It makes sense, then, that investors should turn to spread betting as a way of speculating on bitcoin.
Spread betting offers higher risk/reward ratios than traditional trading and it empowers investors to trade without ownership. In the case of cryptocurrencies where ownership is potentially as risky as market volatility, spread betting can offer a means of circumventing this risk. Spread betting allows traders to exploit market volatility in the hope of making large profits from a small initial investment.
“Best Spread Betting Award” winner ETX Capital is one of the most popular spread betting providers. ETX Capital users benefit from a choice of thousands of spread betting markets and three trading platforms tailored to suit varied trading styles. Security is a top priority for ETX. The company is FCA Regulated as well as being part of the Financial Services Compensation Scheme, ensuring customers can trade in confidence.
ETX Capital is best known for a forward-thinking approach to customer service. As well as an exceptional customer support team, this translates into a top-tier trading education programme. ETX leads international trading seminars and has an extensive library of online trading tutorials, to ensure investors maximise their trading business.
With these features in mind, it’s little surprise that cryptocurrency connoisseurs are turning to award-winning ETX Capital.
About ETX Capital
ETX Capital is a leading FCA regulated provider of Financial Spread Betting, CFDs and Forex It provides investors with unrivalled levels of customer support from friendly, knowledgeable staff, all delivered with the utmost client confidentiality.
Winner of “Best Spread Betting Award” at the City of London Wealth Management Awards 2015.
ETX Capital is a trading name of Monecor (London) Limited, is authorised and regulated by the Financial Conduct Authority, Financial Services Register Number 124721, and a member firm of the London Stock Exchange.
Risk Warning: Spread Betting is high risk and your losses can exceed your initial deposit.
Company Name: ETX Capital
Website: www.etxcapital.co.ukFollow us on Telegram.
• Join CCN's crypto community for $9.99 per month, click here.
• Want exclusive analysis and crypto insights from Hacked.com? Click here.
• Open Positions at CCN: Full Time and Part Time Journalists Wanted.