A cryptocurrency is a fairly new asset class that was created when Satoshi Nakamoto mined the very first block of Bitcoin. Cryptocurrencies are a digital type of currency that is guaranteed by the blockchain ledger. Just like other currencies, the cryptocurrencies can be used to buy goods and services. They can also be used as an investment as well as trading CFDs on them. Unlike the traditional fiat currencies, the cryptocurrencies are not issued by any government or central bank. They are decentralized and cannot be controlled by any individual or entity. This is part of the appeal of cryptocurrencies and one of the reasons they have become so popular.
There are literally thousands of cryptocurrencies, but only a handful are very popular for traders. That handful includes Bitcoin, which was the very first cryptocurrency. It remains the largest by market capitalization and out of the entire cryptocurrency market, Bitcoin holds over 60% of the total market cap. Other popular cryptocurrencies include:
Cryptocurrencies have some technological hurdles to clear, but they also have many advantages. One of the biggest advantages is the low fees for large transactions. There have been transfers of hundreds of millions of dollars made for less than $1. The transfers are also extremely fast. Where a wire transfer through a bank could take several days to arrive at the recipient, a Bitcoin transfer takes no longer than 10 minutes in most cases, no matter how large or small the transaction is.
When it comes to trading the chief advantage of cryptocurrencies is the diversity of assets available to trade. There are literally thousands of different cryptocurrencies, and each one has its own use case and price history. Traders are able to specialize in cryptocurrency markets if they like.
Other benefits of cryptocurrencies include privacy, decentralization, security, and strong ownership rights.
Suppose you’re interested in Bitcoin and believe it will increase in value versus the U.S. dollar in the coming days. You decide to trade BTC/USD using CFDs. Currently Bitcoin is being quoted at $36,410 / $36,510. You decide to purchase 2 units opening at $36,510. This is equivalent to buying 2 BTC, so you will gain or lose $2 for every $1 that Bitcoin moves.
As you can see from the example above there are some risks involved in trading cryptocurrency CFDs. The largest risk, especially for those who are inexperienced with cryptocurrencies, is the price volatility associated with the asset class. Because cryptocurrencies and the CFDs linked to them, are so volatile it is possible to lose a large amount of money in a very short period of time.
There is also the leverage involved in CFD trading to consider. With an asset that’s already as volatile as cryptocurrencies, adding leverage can be like pouring gasoline on a fire. Great if it’s in your favour, but disastrous if it goes against you.
Finally, because cryptocurrency markets are still relatively small and unregulated there is little price transparency. Manipulation is known to occur, the lack of transparency and liquidity, can cause significant variations when pricing cryptocurrencies.
|#||Crypto||Prediction||Accuracy||CVIX||Price||24h||7d||Market Cap||7d price change|
|1||BTC||Bitcoin predictions||92%||4||$26 358.83||0.34%||-2.46%||$513 940 893 353|
|2||ETH||Ethereum predictions||94%||6||$1 605.45||0.57%||-1.06%||$193 030 672 715|
|3||USDT||Tether predictions||94%||1||$0.999256||-0.02%||-0.09%||$83 209 237 743|
|4||BNB||Binance Coin predictions||90.4%||4||$211.90||-0.51%||-1.42%||$32 599 483 391|
|5||XRP||XRP predictions||89.6%||8||$0.498171||-0.94%||-3.82%||$26 558 684 405|
|6||USDC||USD Coin predictions||92%||1||$1.000013||-0.01%||-0.01%||$25 482 938 324|
|7||STETH||Lido stETH predictions||93.2%||1||$2 941.39||-0.40%||-3.32%||$10 258 752 564|
|8||WTRX||Wrapped TRON predictions||88.8%||20||$0.084973||0.59%||0.51%||$8 639 700 468|
|9||ADA||Cardano predictions||92.4%||8||$0.244012||-0.57%||-2.80%||$8 571 772 939|
|10||DOGE||Dogecoin predictions||93.6%||6||$0.060473||-0.46%||-3.62%||$8 537 944 555|
|11||SOL||Solana predictions||88%||22||$19.21||1.02%||-4.69%||$7 926 687 641|
|12||TRX||TRON predictions||86%||18||$0.085280||0.25%||0.71%||$7 597 972 233|
|13||TON||Toncoin predictions||59.2%||84||$2.16||2.18%||-9.20%||$7 427 615 519|
|14||DAI||Dai predictions||92.4%||1||$0.999584||-0.05%||-0.02%||$5 345 663 638|
|15||DOT||Polkadot predictions||88.8%||11||$4.00||-0.25%||-3.61%||$4 927 453 445|
Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.
© 2015-2023 Crypto-Rating.com
The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.