A trader has two options when trading in the crypto market. Firstly, he can buy crypto currencies on the market, such as buying Bitcoin in Bitstamp. In this way, you are the crypto holder and will generally wait for its price to rise to sell and make a profit. Alternatively, you can trade a contract for difference (CFD) on a particular crypto and speculate on the price difference. A CFD is a contract between a trader and a broker, which is used to try to make a profit on the price difference between the opening and closing of the trade. You can either hold a long position (speculating on a rise in the price) or a short position (speculating on a fall in the price). This is considered a short-term investment, as CFDs tend to be used within shorter time frames. For example, when you trade Bitcoin CFDs, you are also speculating on the ups and downs of the BTC/USD combination.