Trading cryptocurrencies means executing a transaction based on the direction of the price of a specific cryptocurrency against the dollar (in cryptocurrency pairs against the dollar) or against another cryptocurrency, by means of cryptocurrency pairs against another cryptocurrency. CFDs are particularly common way to trade cryptocurrencies because they allow more flexibility in the use of leverage and the ability to execute sell positions just like executing purchases.
Growing popularity of cryptocurrency trading
Over the past decade, since Bitcoin first appeared online, cryptocurrency trading has become more common. Cryptocurrencies are digital currencies created using blockchain or peer-to-peer technology that uses encryption – for security. Cryptocurrencies are different from banknotes issued by governments from all over the world because they are intangible: they are made up of bits and bits of data. Furthermore, cryptocurrencies do not have a central authority or authority such as the central bank that issues them or regulates their trading in the economy. Because cryptocurrencies are not issued by any government entity, they are not considered legal.
Although cryptocurrencies are not recognized as illegal in the global economy, they have the potential to change the financial landscape and this makes them difficult to ignore. At the same time, blockchain technology, which forms the basis of the creation of cryptocurrency, has opened up new investment opportunities for traders to take advantage of.
Types of cryptocurrencies
Although there are hundreds of cryptocurrencies now, traders’ interest seems to revolve around nearly six cryptocurrencies. Bitcoin tops the list of the most common currencies, which are the original cryptocurrency. Because there is a “hard fork” – split – in bitcoin’s original blockchain, Bitcoin has formed two additional new virtual currencies: Bitcoin Cash and Bitcoin CashABC. Other popular currencies that are frequently traded on cryptocurrency exchanges and online CFD trading platforms, such as Plus500, which include Ethereum, Litecoin and Ripple XRP, are also common lyceums.
Famous currencies can be divided into several main types. There are those that aim to offer an alternative to banknotes. These include Bitcoin, Bitcoin Cash (BCH), Bitcoin Cash ABC and Litecoin. On the other hand, Ethereum, the only goal is to “spend” to use the Ethereum platform for smart contracts, which can be used to create Dapps-decentralized applications. Thus, ethereum is more a “service code” than a currency. On the contrary, Ripple (XRP) is used as a blockchain-based payment platform. Finally, there is the 10 most popular currency index, which can be compared to the stock market, or currency index, but consists of the top 10 most coded and liquid assets.
In 2008, Bitcoin or BTC was the first cryptocurrency offered to the world. This was the first cryptocurrency to adopt blockchain technology. Today, Bitcoin has become one of the most valuable cryptocurrencies in the industry, with even gold being valued.
Bitcoin Cash (BCH)
Bitcoin Cash is the result of the hard fork-split – which occurred in the original bitcoin blockchain series in August 2017. The change was an attempt to allow larger blocks on the original blockchain, thus allowing faster processing of transactions.
Bitcoin Cash (ABC)
The result of another “split”, but this time in the blockchain of Bitcoin Cash on November 15, 2018. The split was the result of the upgrade of bitcoin cash to Bitcoin Cash Adjustable Blocksize Cap (from which the name “ABC”) came from). At this time, Bitcoin Cash Adjustable Blocksize Cap was one of the biggest blockchain customers. The purpose of the upgrade was to provide the possibility of non-cash transactions such as smart contracts and forecasting services by Orikel. Those behind the split wanted to replace the request for accepted character transactions by requesting topological transactions.
However, not all members or contracts on the Bitcoin Cash network agreed to the upgrade, so when updates were provided, another split occurred, resulting in the emergence of Bitcoin Cash ABC.
Index of the 10 most traded cryptocurrencies
The 10 most traded cryptocurrencies index is an index designed to provide a tradable index for the cryptocurrency class. It consists of the top 10 currencies and most liquid coded symbols, in terms of average prices on multiple major exchanges. The index was consolidated at 1,000 points on December 23, 2016, and as of January 9, 2018, it was recalculated against 10-element market movements on an ongoing basis.
Ethereum coin is designed as a quick way to process transactions, a blockchain network developed based on the original blockchain technology. The cryptocurrency was first introduced by Fatlik Butrain in November 2013.
Ripple Labs Inc., a U.S.-based technology company, was developed as a payment method in 2012, where ripple’s main goal was to simplify the current global payment transfer system by reducing costs and processing payment time.
Litecoin was introduced to the cryptocurrency world in October 2011 as an attempt to facilitate cross-border payments. It is designed to allow for quick verification of transactions compared to Bitcoin.