An Interesting Journey
Cryptocurrencies aren’t new anymore, they’ve been around more than 10 years already. But still, for a lot of people, cryptocurrencies seem complicated, with seemingly different rules and processes than the other asset types. If that sounds like you, there is no need to worry. We will go over some of the key features of cryptocurrency trading at ETFinance and explain how to get started.
First of all, there are hundreds and hundreds, thousands really, of cryptos on the market, but only a few that most people have read about in the news, like Bitcoin, Ether and Ripple. Typically, the older ones are more well-known and have more coins in circulation. One thing to keep in mind is that cryptocurrency is a digital or virtual currency. The bills and coins are not printed and coined.
Maybe that is one reason some investors feel uncertain about cryptocurrency trading: since the currency is virtual, it is hard to understand how it gains or loses value. And that is what crypto traders want: their crypto gaining or losing value. Traders choosing to speculate that the value will slide will go short and will benefit if they speculate correctly, while investors expecting their crypto to rise in price will go long
That is one of the benefits of trading cryptos with ETFinance. Since we offer assets on CFDs, contracts for difference, traders can choose to go long or short on cryptos and other assets as well.
Cryptocurrencies are based on the blockchain. This is a detailed, innovative ledger-like system where people can transfer the value of things using strings of numbers and letters. Blockchains are known for their tight security and for proving that buy and sell transactions have taken place. Additionally, blockchain technology has enabled a lot of innovation in the world of business.
Each cryptocurrency has its own blockchain, and no two cryptos are exactly the same. Many are decentralized, which means there is no big oversight body, and trading is typically very fast.
There are terms you will hear about, such as wallets, mining and keys. These concepts are important to understand if you are trading individual cryptocurrencies. However, if you’re trading cryptocurrencies online via CFDs, you don’t need to be bothered with those things. Perhaps this is one reason ETfinance investors find cryptocurrency trading with CFDs beneficial.
Cryptos re known for their volatility, with prices fluctuating significantly. This change is price can let savvy investors get in when the time seems right for making a profit. Especially when trading via CFDs, volatility can be harnessed for profit.
Since its introduction onto the market over 10 years ago, bitcoin, the first of this class of digital money, has grown in reputation and market share. Many people have followed its meteoric rise a few years back and watched as its price sunk and stabled out to some degree. That is really the thing with volatile assets like cryptos – as its price changes, profit can be made.
In addition to bitcoin, other names on the major cryptocurrency list include:
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