Thoughts on Crypto CFD’s

I used to trade crypto’s through exchanges but with the collapse of FTX one of the worlds largest exchange and many other crypto firms in 2022, I have decided to start looking at safer ways to trade crypto’s and recently came across [crypto’s CFD’s](https://varianse.com/en/forex-education/broker-knowledge/crypto-cfds-3-reasons-to-trade-them/) which is being offered by a [globally regulated broker](https://varianse.com/en/). I think that losing money on a trade or investment is expected but when you lose money due to the exchange misappropriating client funds, its not fair as these exchanges should ensure that client funds are protected at all times even in the event that they go bust.

Upon doing research I found that trading with a regulated broker does add a layer of protection to the investor/trader as client funds are kept in segregated accounts and you pretty much get the same coin, leverage and trading conditions you would get trading with crypto exchanges such as Binance.

I also compared the costs of trading between exchanges such as Binance and brokers and found that with an exchange you get charged a liquidation fee of 2% (which means if you get stopped out, not only do you lose money on the trade, but they also charge you 2% which goes into an insurance fund). The swaps are charged every 8 hours while brokers charge once a day, which allows you to hold positions longer.