Understanding Crypto Trading

Cryptocurrencies have garnered a significant amount of excitement within the financial trading community over the past few years. But what exactly is a cryptocurrency, and how does crypto trading work?

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Cryptocurrencies are digital forms of currency that are designed to be used to make financial transactions to purchase products and services. This newer asset class is meant to be an alternative to fiat currencies which are issued by governments and controlled by central banks.

Instead of central banks making decisions on the supply, cryptocurrencies are usually governed by the community which has invested in the specific cryptocurrency token. Also, in place of a central bank’s ledger, a cryptocurrency has a fully transparent and decentralized virtual ledger that maintains a record of every financial transaction using the specific cryptocurrency token.

When the first cryptocurrency, Bitcoin initially came onto the scene in 2009, hardly anybody took notice in the financial markets. However, since then, the value of Bitcoin has shot up past $50,000, bringing along the rest of the cryptocurrency markets, which also reached unprecedented highs.

Crypto trading works through the use of CFDs which allow you to trade various cryptocurrency markets without actually having to take possession of cryptocurrency coins and tokens. The value of your CFD cryptocurrency position will appreciate and depreciate as the market for the specific cryptocurrency goes up and down. With Bullquote, you can trade a wide choice of cryptocurrency pairs.