Yet blockchain technology is essentially a shared computer system infrastructure which forms a decentralised network, which cryptocurrencies utilise. Whilst it is cryptocurrencies which forced blockchain into the limelight, blockchain has many other uses which companies are exploring, but is outside the scope of this introduction.

The future of Crypto: What excites many about the future for crypto is how it could become the main method of payment. In its earlier days it was widely critiqued as a method of payment, as it was assumed to be used by criminals on the dark web to evade the usual anti money laundering protocols. But, in recent years, it has become a more widely accepted method of payment for legitimate businesses and people.

Bitcoin: It is generally agreed that Bitcoin was the original decentralised cryptocurrency, launched in by a pseudonymous developer called Satoshi Nakamoto. As recognition of crypto payments has increased, so has the number of digital currencies which are in the hundreds and possibly in the thousands. Large Speculators Enter the Ring: If a market moves, it catches the eye of speculators.

And cryptocurrencies have a tendency to be volatile, which makes it even more appealing to some traders. Even with fund managers, hedge funds and institutions speculating on crypto, the problem remained that platforms which offered digital currencies catered for payments and not speculators.

Features such as stop loss, take profit, leverage and the ability to trade short were not available, which are common features professional traders required. Therefore, it was only a matter of time before CME were to launch bitcoin as a tradable futures contract. This allowed professional traders to speculate on the wild fluctuations of bitcoin, trade long, short or hedge their crypto holdings.

Yet this has paved the way for cryptocurrency CFDs contract for difference to be created which fixed these problems and opened crypto speculation up to retail traders.

CFDs contract for difference are a derivative produce. This means a crypto CFD trader does not own a digital currency when a trade is placed, yet they can speculate both long rising markets and short falling markets without the limitations of a traditional crypto transaction. Margin requirements and minimum trade sizes for crypto CFDs are much lower than crypto futures contracts, which make them more accessible for smaller traders.

Moreover, crypto CFD trading also bypasses the requirement to open a digital wallet, and allow traders to speculate on cryptocurrency CFDs alongside traditional markets such as forex , indices or commodities. Spread: When a trade is entered on our MT4 platform , the trader pays the spread which is a transaction cost.

The spread is simply the difference between the bid and ask prices which are visible within the deal ticket or market watch window in MT4. The spread is a variable rate which fluctuates depending on the amount of liquidity available at time of entry. Typically, the spread could be expected be tighter when trading activity volumes are higher.

For example, quiet periods such as bank holidays may see a wider spread as there are fewer participants buying or selling cryptocurrencies. Conversely, the spread could be tighter cheaper during busy trading periods such as when the US or UK markets are open.

Cryptocurrency trading steps

Swap: Swaps are a daily holding cost on open positions, and are derived from the interbank rate from which currency the market is denominated. The swap rate can be either positive a charge or negative a debit depending on whether the trader is long or short a market. Please note that Friday is a triple swap day on crypto CFDs to account for the weekend, as interest rates are calculated a year.

Trade long or short Trading cryptocurrency derivatives such as a CFD allows the trader to go long or short, which is not always possible through a traditional crypto payment system. Bitcoin System is a cryptocurrency trading app that makes it simple to passively make a profit trading bitcoin.

Free signup, limited spots available. Download today! We're here to dispel the myth that you need to be a professional trader with years of experience to successfully trade crypto. Thanks to our proprietary trading algorithm, being an effective crypto trader is as easy as following our automated trading app!

No experience is required. So how does it work?

It depends on intelligent AI algorithms to read market data and generate tradable signals. Only a handful of crypto robots make use of this technology, most of which are hidden behind expensive license fees and paywalls. However, the Bitcoin System app is completely free to use. Bitcoin System trading environment is powered by blockchain and smart contracts to ensure transparency.

Moreover, we rely on some of the best brokers in the industry to facilitate transactions with users. This is why we give you the choice between getting started with our free demo account and practising with paper money or going straight into live trading if you feel comfortable with the platform.