WHAT IS CRYPTO TRADING

What is Cryptocurrency
trading?

Cryptocurrencies are an emerging type of currency market first made popular by Bitcoin. There are dozens of Cryptocurrencies (also known simply as ‘Cryptos’) available but most traders are interested in the leading currencies, like Bitcoin, Ethereum, Litecoin, Ripple, and Bitcoin Cash.

Cryptocurrencies are ‘mined’ by people who have substantial computer processing power who receive the virtual coins in return for leasing that power. Unlike traditional currencies, the supply of Cryptocurrencies is controlled and most have a maximum total supply – once that is reached, no new coins will be produced.

Cryptocurrencies are increasingly becoming more mainstream and it is now possible to trade the price of the leading Cryptos against other currencies like the US dollar. Like other currencies, Cryptos have an exchange rate which fluctuates.

WHAT IS CRYPTO TRADING

Why is Cryptocurrency trading
so popular?

Crypto trading has become popular because of the massive press coverage they have generated. In addition, Cryptos are not subject to the same dynamics as conventional currencies.

Cryptos have no central bank regulating how much of a currency is in circulation. They are not tied to a particular interest rate and it is not possible for a central bank to ‘print’ more Cryptos. The traditional forces that influence other currencies – e.g. economic factors like inflation data – generally don’t affect Cryptos.

Like other currencies the value of Cryptos is measured against what they are worth against different currencies. This means you can go long or short on a particular Cryptocurrency against the US dollar, GBP or Euro.

RIGHT FOR ME

Is Cryptocurrency trading
right for me?

Cryptocurrencies are a new and rapidly evolving market. Several key factors make them attractive as a potential trading opportunity:

  • Trade long or short on Cryptocurrencies: you can take advantage of both rising and falling Cryptocurrency prices
  • Trade without owning: you can trade the price of Cryptocurrencies without having to buy them yourself
  • Volatility: Cryptocurrencies can be much more volatile than ‘normal’ currencies
  • Range: the price band within which a Cryptocurrency’s price can trade
  • Leveraged trading: Leverage can be used to enhance profits – and losses – from Cryptocurrency trades