Crypto TradingWhat is a Cryptocurrency?
Cryptocurrencies (Crypto) are virtual currencies that typically use a decentralised network to carry out secure financial transactions. With Plus500’s trading platform you can trade Crypto CFDs – such as Bitcoin, Ripple XRP, Ethereum and more – by speculating on their price movements, without actually owning them.
Trade the world’s most popular cryptocurrencies with leverage and 24/71 availability: Bitcoin | Ethereum / Bitcoin | Ethereum | Crypto 10 Index | Litecoin | NEO | Ripple XRP | IOTA | Stellar | EOS | Bitcoin Cash ABC | Cardano | Tron | Monero and more
In 2008, Bitcoin or BTC was the first cryptocurrency that was introduced to the world. This cryptocurrency was the first to adopt blockchain technology. Today, Bitcoin has become one of the most valuable cryptocurrencies in the industry with its value surpassing even that of gold.
What are the benefits of Crypto CFDs?
- No need to have an exchange account or use a special wallet!2
- Trade in any direction – Selling is just as accessible as Buying
- Available 7 days a week, 24 hours a day!1
Crypto trading FAQ
- Apart from being the foundation for the creation of cryptocurrencies, blockchain technology has wider implications in the global economy, including the potential application in smart contracts and in the field of Internet of Things (IoT). As cryptocurrencies were only introduced in the last decade and are not considered a legal tender, they are not subject to the same market forces as traditional markets. This means that trading in cryptocurrencies is not like trading in traditional financial markets.
- Due to the centralised nature of cryptocurrencies, their price movements are less affected by factors such as data releases, political uncertainty, and interest rate changes. In addition, because they are a new type of financial instrument, cryptocurrencies have relatively few correlating assets which could affect their price movements.
- Nevertheless, the prices of cryptocurrencies can be affected by several factors such as changes in blockchain technologies and regulatory attempts to control their acceptability and ‘tradeability’ in the financial markets. News reports such as disagreements on how a particular cryptocurrency should be upgraded or processed can also affect its price. It is likely that any security flaws exposed by hackers will also adversely affect the price of a cryptocurrency. Of course, government policies and regulations that seek to ban or limit the sale of cryptocurrencies will also affect its price.
Cryptocurrency trading, just like all forms of financial trading, requires relevant knowledge, skills, and available capital. If you wish to trade the cryptocurrency market, you should first ensure that you have all the relevant skills for analysing the market. It should be noted that cryptocurrencies are more volatile than traditional instruments and, hence, riskier than most people are used to. This volatility can provide more opportunities for making a profit, but remember it can also result in losses that are greater than what you may be willing to bear.
If you do decide that trading cryptocurrencies is right for you, you could start by opening a trading account with FXVIP. You can then choose the crypto CFDs you want to trade from the rich selection on offer and open a position when your analysis tells you the time is right.
How to start trading with FXVIP?
Register with fxvip and login into client area here to get access to client’s dashboard.
Now you have access to all you need.
Upload your documents to verify your account.
You need to get into the verification page to upload your documents to verify your identity and residency.
As FXVIP providing different trading platforms such as CFD trading and Order-book trading platforms, you can check the type and features of each platform to choose the right one.
FXVIP offering some kinds of trading account that each account type has a different trading condition and you should choose the one is suite to your trading strategy.
Now all you need is just make a deposit to increase your trading account balance to start trading by opening the position on the right side to make profit on falling and raising the prices.
The Growing of Cryptocurrency Trading
Over the past decade, since the internet debut of Bitcoin, cryptocurrency trading has become increasingly popular. Cryptocurrencies are digital coins which are created using blockchain or peer-to-peer technology that uses cryptography – for security. They differ from fiat currencies issued by governments from around the world because they are not tangible: instead, they are made up of bits and bytes of data. Moreover, cryptocurrencies do not have a central body or authority such as a central bank that issues them or regulates their circulation in the economy. As cryptocurrencies are not issued by any government body, they are not considered legal tender.Even though cryptocurrencies are not recognised as legal tender in the global economy, they have the potential of changing the financial landscape and this makes them hard to ignore. At the same time, the blockchain technology, which forms the foundation of cryptocurrency creation, has opened up new investment opportunities for traders to capitalise on.
Types of Cryptocurrencies
While there are currently hundreds of cryptocurrencies available, traders’ interest appears to be focused on approximately half a dozen cryptocurrencies. Included in the list of most popular cryptocurrencies are Bitcoin, which is regarded as the original cryptocurrency. Due to a “hard fork” in the original Bitcoin blockchain, Bitcoin branched out two new additional virtual coins: Bitcoin Cash and Bitcoin Cash ABC. Other popular cryptocurrencies that are frequently traded on cryptocurrency exchanges and online CFD trading platforms, include Ethereum, Litecoin and Ripple XRP.Popular cryptocurrencies can be broken down into several main ‘types’. There are those intended to offer an alternative to fiat currencies. These include Bitcoin, Bitcoin Cash (BCH), Bitcoin Cash ABC and Litecoin. Ethereum, on the other hand, is only intended to be ‘spent’ to use the Ethereum smart contracts platform, which can be used to build decentralised applications (Dapps). Ethereum is, therefore, considered more of a ‘utility token’ than a currency. Conversely, Ripple XRP is used as a blockchain-based payments platform. Finally, there is the Crypto 10 index, which can be compared to a stock market or currency index but is made up of the 10 largest and most liquid cryptocurrency assets.