Trade cryptocurrency CFDs with growsafeltd.com
What is a cryptocurrency? A cryptocurrency is a digital asset conceived for use as a medium of exchange, which uses cryptography to secure transactions, control the supply of additional units and corroborate transfers. In short, cryptocurrency is a decentralised electronic currency. Why trade cryptocurrencies? Cryptocurrencies have the tendency to be particularly volatile, so they provide various opportunities for traders to open positions with big movements. Leveraged trading provides high liquidity, matched with the reputation cryptocurrencies have for being highly volatile, means that trading cryptocurrencies with Capital.com provides greater opportunities in markets.
Although the cryptocurrency market is relatively new, it has experienced significant volatility due to huge amounts of short-term speculative interest. For example, between October 2017 and October 2018, the price of bitcoin rose as high as $19,378 and fell to lows of $5851. Other cryptocurrencies have been comparatively more stable, but new technologies are often likely to attract speculative interest. The volatility of cryptocurrencies is part of what makes this market so exciting. Rapid intraday price movements can provide a range of opportunities to traders to go long and short. In early 2021, cryptocurrency such as bitcoin has risen up to $58,000, the highest currency has ever risen. The cryptocurrency market is usually available to trade 24 hours a day, seven days a week, because there is no centralised governance of the market.
Cryptocurrency
transactions take place directly between individuals
on cryptocurrency exchanges all over the world. However,
there may be periods of downtime when the market is
adjusting to infrastructural updates or ‘forks’.
Liquidity is the measure of how quickly and easily
a cryptocurrency can be converted into cash without
impacting the market price. Liquidity is important
because it brings about better pricing, faster
transaction times, and increased accuracy for technical analysis.
In general, the cryptocurrency market is considered illiquid because
the transactions are dispersed across multiple exchanges,
which means that comparatively small trades can have a huge
impact on market prices. This is part of the
reason cryptocurrency markets are so volatile.