Choosing the Smartest Ways for Cryptocurrency Trading for You
Crypto-currencies (cryptos) are virtual currencies that typically use a distributed network to conduct secure financial transactions. With the StsRoyal trading platform, you can trade crypto-CFDs such as Bitcoin, Ripple XRP, Ethereum, and more by speculating about their price movements without owning them.
Crypto currencies are growth markets that have become increasingly popular and large cryptocurrencies such as Bitcoin and Ethereum have reached the mainstream.
The majority of cryptocurrencies, also known as “cryptos,” are powered by Blockchain technology. They differ from established fiat currencies as they are decentralized assets that are not currently regulated or controlled by any country, central bank or regulatory agency.
Blockchain technology, which operates the majority of crypto currencies, also has far-reaching implications for many things, such as client-server models, food supply chains, and advanced cybersecurity protocols.
Cryptocurrency trading differs significantly from more traditional markets, such as forex or indices, as they are relatively new assets and they are not impacted by the same forces as other more established markets.
What moves the crypto currency markets?
As the cryptocurrency markets are new, there are less correlated assets that drive price changes. In addition, they were created as decentralized assets without regulatory control and, for this reason, they are not as impacting on the numbers, interest rates and political changes as fiat currencies.
Crypto-currency prices are sensitive to potential moves towards greater regulation and various factors, such as:
Disagreement within the crypto communities about upgrades, for example when a cryptocurrency is hard-coded. This can happen when its blockchain diverges in two directions.
Attacks on crypto currency exchanges that reveal security holes
New stories and rumors of stronger central bank control or possible exclusion of crypto currencies by countries
There are a number of cryptocurrencies on the market, some more popular than others and each with a different degree of volatility. =
Some of the cryptocurrency markets you can trade on ETX with a spread bet or CFD are:
Bitcoin: the “original” and still the most valuable coin on the market.
Bicoin Cash: The result of the first “Hard Fork” in the original Bitcoin Chain. Bitcoin Cash is a stand-alone cryptocurrency.
Ethereum: Another, probably more ambitious, project that intends to change the way the Internet works.
Litecoin: Created to support cross-border payments with faster transaction times than competitors.
Ripple: It was created to address issues such as versatility and speed in international payment methods.
What are some of the biggest cryptocurrencies?
If you’re new to online trading, finding the differences between some of the leading crypto currencies and deciding which to trade with can be very difficult. These are relative new assets and therefore understanding how each cryptocurrency fits into the market environment is very important before starting to develop your own trading strategy.