Bitcoin & Friends

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Bitcoin is at the forefront of the Cryptocurrencies trend sweeping the global markets, drawing traders and investors from every part of the world. But what is making this hugely volatile financial instrument so attractive? For a brief overview of trading on Bitcoin & friends, read on….

Bitcoin & Friends

If you invested in just 1 Bitcoin a year ago, you would have seen your $1,000 extend to $11,800. This is probably the highest return on a financial asset in history. The same goes for traders who have taken a long-term view of Bitcoin and put funds into trading CFDs – Contract for Difference – the financial instrument that rises and falls in returns, dependent on the movement of the underlying asset.

Trading instead of buying

For CFD traders, trading on movement does not demand the purchase of actual Bitcoins, though it must also be said that in early December when there was slippage, the risk also became very apparent and reminded the market that traders must be extremely knowledgeable to enter the market. There is one broker who takes this seriously and at TRADE.com there is a Cryptocurrency eBook available and news every day to help with better trading decisions.

Alternative Cryptos

It cannot be denied that Bitcoin is the success story of the year. However, there are now over 1,100 cryptocurrencies on the market, each following the innovative blockchain technology that has created these decentralized digital currencies. Many, like Ethereum and Dash, tend to mirror the Bitcoin trend but others, such as Ripple and Litecoin, are often used as alternative investments when Bitcoin is under pressure.

Crypto future

None can predict the future and with Bitcoin and cryptocurrencies as a whole, analysts give mixed forecasts. Billionaire investor Howard Marks reports Cryptocurrency as a ‘pyramid scheme’, whereas John McAfee, founder of McAfee Security and a Bitcoin miner himself, says that ‘bitcoin would reach $500,000 within three years.’

However, this we do know - CBOE and CME Group recently launched bitcoin futures contracts, more and more reputable institutions are joining the Enterprise Ethereum Alliance, hard forks are being planned, and rumours are starting about regulation for crypto. Due to these and many other events in the pipeline, Bitcoin and its cryptocurrency friends are hugely volatile, creating the ideal environment for the CFD trader who is looking for market movement.

You can learn how to trade and start trading Bitcoin and other Cryptocurrencies on TRADE.com – CLICK HERE TO REGISTER

The contents of this article do not constitute investment advice. Please remember that trading is highly risky and can lead to loss of capital. Trading Contracts for Difference (CFDs) in Cryptocurrencies carries a high level of risk and is not suitable for all investors. For more about risks on TRADE.com, click onto the Risk Disclosure Policy.