Looking at the latest market reports, it seems like cryptocurrency is here to stay. Moreover, it is gaining momentum day by day, so if you were blissfully ignoring it then it’s time to get on the crypto bandwagon.
A cryptocurrency is a form of digital currency that can be used for online transactions to buy goods and services. But unlike digital currencies, crypto is not backed or produced by any central authority. And you’ll need real currency to acquire any form of cryptocurrency. At the moment, there are thousands of digital currencies available in the market, and many companies have their own specific currency or tokens, made particularly for the goods and services they provide.
One of the main reasons crypto is so popular is that it removes intermediaries like banks from the very equation. Hence, cryptocurrency markets are decentralized and the transactions take place over different networks across the world through blockchain technology. A blockchain is a digital registry that shows the transaction history and ownership details of every unit of cryptocurrency. They are easily readable and stored in more than one location making crypto transactions more transparent and secure than other modes of payment.
Just as any other financial instrument, you can trade CFDs on popular cryptocurrencies like Bitcoin, Ethereum, and Litecoin via crypto brokers. CFDs enable you to speculate the price movements of crypto and you could make a profit out of it without physically owning it. They are also highly leveraged, which means that both your profits and losses will be magnified.
Traders are often attracted to crypto trading in the high hopes that it’s the currency of the future. But being a sought-after asset also means that cryptocurrencies are highly volatile. So while there is the possibility of huge returns the risks that come with are also quite tremendous.
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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81.48% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Trust Capital TC does not offer Contracts for Difference to residents of certain jurisdictions including the USA, Iran, and North Korea. Please consider our “Risk Disclosure“.