Cryptocurrency market, Types of Cryptocurrencies, Bitcoin & CFD trading
The Cryptocurrency exchange is a platform that facilitates cryptocurrency trading among numerous buyers & sellers, In order to begin investing in cryptocurrencies & tokens, you need to open an account in a cryptocurrency exchange, you should find an exchange in your domestic country first to convert money from your bank account into Bitcoin, the base currency.
Cryptocurrency is an emerging market that has become popular as major cryptocurrencies like Bitcoin and Ethereum have entered the mainstream, Cryptocurrency is a digital asset conceived for use as a medium of exchange, that uses blockchain technology cryptography to secure transactions, control the supply of additional units & corroborate transfers.
You can find a fiat-based cryptocurrency exchange that allows you to deposit your local money, Due to strict regulations, all fiat-accepting exchanges require you to verify your account before depositing your funds, You must complete the ‘Know-Your-Customer’ (KYC) process by submitting your identity proof and any other personal information.
If you’re keen on buying any other altcoins & tokens, You should open a domestic cryptocurrency exchange in your country and verify your account (submit identity proof), You have to deposit funds from your bank account to your crypto exchange account and start buying Bitcoin.
You should open a crypto exchange account that presents a variety of other coins, these exchanges do not accept fiat deposits and only allows coin deposits, After verifying your account, you can transfer the Bitcoin that you’ve bought from your local exchange to your new crypto exchange and you can start buying other coins with your Bitcoin
Cryptocurrency CFDs (Contracts for Difference)
Rather than trading on a cryptocurrency exchange and having to open a digital wallet (which can be difficult to set up and complicated to manage) to store actual coins, when you trade cryptocurrencies with ETX you’ll be speculating on market movement with a spread betting or CFD trading account.
CFD trading account has a number of benefits over directly buying a particular cryptocurrency, You won’t need a digital wallet and so won’t be exposed to potential network hacks, and because you’re speculating on price movement rather than owning the underlying asset you can go both long and short on cryptos.
Cryptocurrency markets are some of the world’s most volatile markets, with big price swings very common, When you trade cryptocurrencies at ETX you can use all of the same smart risk management tools you can use on our more established markets, Cryptocurrency trading could be for you if you have a good understanding of the market and a strong trading strategy that relies on astute evaluations of potential risk.
NatureForex presents Bitcoin, Litecoin, and Ethereum CFDs which allows you trade cryptocurrency without owning coins, Crypto CFDs are contracts between buyers & sellers, wherein sellers pay buyers the difference between the current value of crypto-assets and their value at the end of the contracts, Crypto CFDs are more costly but they are less private, they offer credibility & simplicity of use for traders who aspire to make money off cryptocurrencies.
Types of Cryptocurrencies
Aside from Bitcoin, there are numerous other popular cryptocurrencies, These include Bitcoin Cash, Ripple, TRON, Ethereum, Litecoin, XEM, Bitcoin Gold, Stellar, NEO, EOS, Steem and Quantum, The most popular cryptocurrencies are Bitcoin, Ethereum, Ripple & Litecoin, There are many cryptocurrencies on the market, some better known than others & each with varying degrees of volatility, Some of the cryptocurrency markets you can trade at ETX as a spread bet or CFD include:
Bitcoin is the original crypto and still the market’s most valuable coin, Bitcoin Cash is the result of the first “hard fork” in Bitcoin’s original chain, Bitcoin Cash is a standalone cryptocurrency, Ethereum is a different, perhaps more ambitious project which aims to fundamentally change the way the internet works, Litecoin is designed to support cross-border payments with faster transaction times than competitors, Ripple is created to address issues such as versatility & speed of international payment solutions.
Bitcoin – BTC
Bitcoin was the first cryptocurrency, It has paved the way for many other cryptocurrencies, Bitcoin is considered to be the most popular cryptocurrency, Bitcoin uses peer-to-peer technology for decentralized control, allowing it to operate without any central authorities or banks, Blockchain is a digital public ledger of all transactions and it is the core component of Bitcoin.
Bitcoin (BTC) is the original decentralized cryptocurrency or peer-to-peer digital payment system designed to challenge traditional financial models by using Blockchain technology for transactions with other currencies, services or products, Bitcoin was launched in 2009 by “Satoshi Nakamoto,” an anonymous internet user, or group of users, who mined the first Bitcoin.
The digital currency was created with a finite number of possible Bitcoin that can be mined and there are a total of 21 million in existence, Coins are mined using the processing power of computers or networks of computers, to solve increasingly difficult algorithms, To set the value of the first Bitcoin, original Bitcoin enthusiasts & miners negotiated prices in USD on the bitcoin talk forums, At the time of its inception, each Bitcoin was worth roughly $0.05.
As Bitcoin grew and angel investors and entrepreneurs invested heavily in its success, so its price rose dramatically, At its highest ever recorded price point, in December 2017, each Bitcoin was worth just under $20,000, Bitcoin has shaped the cryptocurrency market as it is today, A few years after Bitcoin launched & gained popularity, many new cryptocurrencies started appearing, These are known as ‘altcoins’, Altcoins are defined as cryptocurrencies that are alternatives to bitcoins.