Cryptocurrencies

What are cryptocurrencies?

Nowadays everyone talks about cryptocurrencies! But what exactly are these mysterious digital assets? Let’s dive into the world of cryptos!
Cryptocurrencies are one of the newest innovations in the financial world, providing a decentralized network in which transactions can occur without intermediaries! In simple terms, transactions can take place without the involvement of central authorities or financial institutions. Due to their virtual nature, cryptocurrencies are not backed by any tangible asset or central bank, although they are quoted in conventional currencies like the US dollar. In fact, cryptocurrencies rely on supply and demand just like stocks or fiat currencies. Thus, a cryptocurrency’s price fluctuates depending on how many people want to buy or sell it at any moment. Cryptocurrencies are growing at an accelerated pace, as blockchain networks open new opportunities daily. Enter the Crypto trading zone and begin trading CFDs on some of the most prominent names: Bitcoin, Ethereum, Litecoin, Cardano, Ripple, Stellar, Chainlink, Solana, and EOS!

How to trade cryptocurrencies

Cryptocurrency prices are largely determined by the rate of adoption. Given the decentralized nature of the market, they tend to remain unaffected by economic and political factors that normally influence traditional currencies. By trading crypto CFDs, a trader speculates on price movements without owning the underlying asset. Cryptocurrencies are an extremely volatile asset class due to the large number of short-term speculative interests, so it is crucial to identify and manage risk.