A cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. Cryptocurrencies use decentralized control as opposed to centralized digital currency and central banking systems.
The decentralized control of each cryptocurrency works through distributed ledger technology, typically a blockchain, that serves as a public financial transaction database.
Bitcoin, first released as open-source software in 2009, is generally considered the first decentralized cryptocurrency.Since the release of bitcoin, over 4,000 altcoins (alternative variants of bitcoin, or other cryptocurrencies) have been created.
How To Trade Cryptocurrency?
Scared of missing out? Here is a quick plan to get you trading cryptocurrency quickly.
Decide if you want to own the cryptocurrency, or simply have a hunch that it’s value will go up or down.
If you want to own the currency, you need an exchange – Try Hodly – It is a simple, user friendly app
If you want to speculate on the price, you need a broker. Check the list above or use the broker page for a full list.
Fund your account
Buy the Cryptocurrency you want, or open a trade on it’s price.
Congratulations, you are now a cryptocurrency trader! Remember, you can run through the purchase or sale of cryptocurrencies on a broker demo account. Unfortunately, you cannot practise on an exchange.
Trading crypto generally revolves around speculating on it’s price, rather than owning any of the actual coins. For this reason, brokers offering forex and CFDs are generally an easier introduction for beginners, than the alternative of buying real currency via an exchange.