Cryptocurrencies

What is Cryptocurrency?

Everyone is talking about cryptocurrency these days! But what are these mysterious cryptocurrencies? Let’s dive into the world of Cryptos! Cryptocurrencies are one of the newest innovations in the financial world, providing a decentralized network where transactions can take place without intermediaries! Simply put, transactions can take place without the involvement of intermediaries such as central authorities and financial institutions. Due to their virtual nature, cryptocurrencies are not backed by any real commodity or central bank, although they are quoted in regular currencies such as the US dollar. In fact, cryptocurrencies rely on the law of supply and demand just like stocks or currencies. Therefore, the price of a cryptocurrency fluctuates depending on the number of people who want to buy or sell it at any given moment. Cryptocurrencies are growing at an accelerated rate as the blockchain network opens up new opportunities every day. Enter the Crypto Trading Zone and start trading CFDs on some of the biggest names: Bitcoin, Ethereum, Litecoin, Cardano, Ripple, Stellar, Chainlink, Solana, and EOS!

How to Trade Cryptocurrencies

The price of cryptocurrencies is largely determined by their adoption rate. Given the decentralized nature of the market, they tend to remain unaffected by the economic and political factors that typically affect traditional currencies. By trading CFDs on cryptocurrencies, a trader speculates on their price movement without actually owning the underlying asset. Cryptocurrencies are an extremely volatile asset class due to the huge amount of short-term speculative interest, so it is essential to identify and manage risk.