Price movements on Cryptocurrencies like Bitcoin or Ethereum are driven primarily by news and prevailing sentiment, i.e. the fear and greed of retail speculators. These sometimes dramatic shifts can lead to massive intraday price swings, making Cryptocurrency CFDs an exciting product for aggressive and experienced day traders.
The ViniFx Cryptocurrency CFD product allows traders to go long or short without actually holding the Cryptocurrency. This means traders can get exposure to the price of the Cryptocurrency without worrying about the security risks associated with storing it and the counterparty risk from the exchange. This is similar to trading Energy Futures such as oil rather than owning physical oil to speculate on its price.
Broaden Your Trading Opportunities
- Spreads from 0.1 pips.
- Access to 120+ Currency Pairs.
- 0.10s Average execution speed.
- All trading strategies enabled.
- Leverage up to 1:500.
How does Crypto Trading Work?
Bitcoin is the most popular digital cryptocurrency that derives its value from supply and demand factors unique to this asset class. Bitcoin is available in a finite supply and therefore increases in price as demand increases.
Demand stems from speculative sources and more practical sources, for example Internet purchases paid for in Bitcoin.
Bitcoin also has a tendency to react to market sentiment in more traditional markets such as equities and foreign exchange, increasing during periods of negative sentiment.
The first and largest cryptocurrency, Bitcoin paved the ways for hundreds of similar currencies and boasts a market cap of over $100 billion.
Ripple is both a transaction network and crypto token which was created in 2012 as the go-to cryptocurrency for banks and global money transfers, and has recently experienced a period of growth.
The world’s second-largest cryptocurrency, it is labelled by many as ‘the next Bitcoin’. Ethereum has received international recognition and support from giant organizations such as Microsoft, JP Morgan, and Intel.
Bitcoin Cash CFD
Bitcoin Cash resulted from a hard fork of the Bitcoin blockchain. It increased block size from 1 megabyte to 8 megabytes without incorporating SegWit.
PeerCoin aims to solve the inefficiency problem of the Proof-of-Work that is used by bitcoin and many other coins using its own Proof-of-Stake system.
Dash’s focus is on instant transactions and owner privacy. Dash has an infrastructure that enables much faster transactions than other cryptocurrencies and therefore displays higher liquidity than many of its counterparts.