Cryptocurrency Trading

Without going into too much detail behind the underlying technology, let’s just have a look at what a cryptocurrency is and how it works.

Simply put, a cryptocurrency is digital money, and is often seen as an alternative to what is known as fiat currency.

A defining feature of a cryptocurrency is its decentralized nature; it is not issued or regulated by any central authority, making it immune to government interference or manipulation.

Unlike euros or dollars, which have an unlimited supply, the supply of virtual currencies is tightly controlled by the underlying algorithm. For this reason, a cryptocurrency can be compared to valuable commodities like gold.

If you wish to invest in CFDs on cryptocurrencies, you should be aware of the following

Cryptocurrencies are traded on non-regulated decentralized digital exchanges. The pricing of crypto currency CFDs is derived from these exchanges, which may mean the following:

• Market depth is limited to what is available in the order books of such exchanges which are not regulated and do not provide the relevant protections.
• Market data and price feeds are subject to disruptions because of the internal rules of these exchanges or their pricing engines.
• Blockchain technologies, which are the backbone of crypto currency systems, are subject to regulatory bans, hard forks, the activities of hackers, mining cartels and other malicious actors, which may cause further market disruption.
• Charges and funding costs tend to be significantly higher than for other CFD products. Fees can include the spread, funding charges, and commissions. The impact of these fees, may affect your likelihood of making a profit.
• Digital exchanges may introduce trading suspensions or other actions that could result in cessation of trading on such exchanges and/or the price and market data feed becoming unavailable. By trading CFDs in Crypto currencies you accept that where trading ceases and then resumes again at either the relevant initial digital exchange or on any successor exchange thereof, there may be significant price differential which may impact the value of your CFD positions in the relevant Crypto currencies and result in significant gains or losses.

Crypto currency CFDs are not suitable and/or appropriate for all clients. Any person who intends to trade or invest in crypto currency CFDs should have detailed and updated knowledge of the block chain industry.

Please make sure that you have carefully read our Terms and Conditions of Business and our Risk Disclosure and that you fully understand the risks associated with trading CFDs on cryptocurrencies.