Dogecoin’s value rose by 8% this morning following a tweet by business magnate and Tesla CEO, Elon Musk, confirming that he held some of the meme-inspired cryptocurrency as well as bitcoin and Ethereum (Ether).
In response to questions about his holdings, Musk Tweeted: “…I acquired some ascii hash strings called “Bitcoin, Ethereum & Doge. That’s it”.
But the excitement surrounding the tweet died just after midday, as the Dogecoin price fell back to just 1.74% higher, at $0.262600.
Crypto price influence
It’s not the first time that Musk has tweeted about his crypto holdings, his comments tend to be a major influence on the price of cryptocurrencies when he talks about his investments in them on social media.
In response to questions from a crypto-YouTuber named @ProTheDoge, Musk referred to Dogecoin as the ‘people’s crypto’, adding: ‘Lots of people I talked to on the production lines at Tesla or building rockets at SpaceX own Doge. They aren’t financial experts or Sillicon Valley technologists. That’s why I decided to support Doge – it felt like the people’s crypto.”
No Shiba Inu holdings
Another follower of the conversation @ShibaInuHodler asked Musk if he was holding any Shiba Token. His response was “None”, after which Shibu fell 7.4% to $0.000003 following the revelation.
Despite his admissions, Musk also warned investors to be cautious over crypto. He tweeted: “As I’ve said before, don’t bet the farm on crypto! True value is building products & providing services to your fellow human beings, not money in any form.”
Read more: Binance delays issuing Lazio coin
The difference between stocks and CFDs
The main difference between CFD trading and stock trading is that you don’t own the underlying stock when you trade on an individual stock CFD.
With CFDs, you never actually buy or sell the underlying asset that you’ve chosen to trade. You can still benefit if the market moves in your favour, or make a loss if it moves against you.
However, with traditional stock trading you enter a contract to exchange the legal ownership of the individual shares for money, and you own this equity.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional stock trading, you buy the shares for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks.
CFDs attract overnight costs to hold the trades, (unless you use 1-1 leverage) which makes them more suited to short-term trading opportunities. Stocks are more normally bought and held for longer. You might also pay a stockbroker commission or fees when buying and selling stocks.