What is Cryptocurrency
Cryptocurrency is digital currency that is traded between individuals and businesses on the Internet. Cryptocurrency is fully decentralized, and is not beholden to central banks, governments or financial institutions. Since it is an electronic currency, it exists only on the Internet. It has value because people give it value, not because of its association with gold, the performance of the US economy, or any other macroeconomic reality.
Cryptocurrency, is intangible. It remains in a data format, and is visible to anyone, at any time on the blockchain ledger over the Internet. It can be sent from person-to-person via email, through digital currency wallets or through blockchain networks. There are many benefits to using cryptocurrency over traditional currency notably lower transactions costs, zero commissions, minimal fees, no need for credit cards, and no third parties involved in brokering transactions.
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As mentioned, everything takes place over an online network known as the blockchain. This public ledger is distributed over the Internet, and all people on the blockchain network can access the same digital currency such as Bitcoin. Everybody has access to the same blockchain ledger – it is transparent and public knowledge. Thanks to complex algorithms, each digital currency such as Bitcoin is easily identified, based on pre-set programmable code.
Bitcoin trading is the most popular digital currency option, and it is regarded as the gold standard of cryptocurrency. The technology that has created these digital tokens – blockchain – is the real appeal of digital currency. No other transmission mechanism is more secure, cost-effective (saving billions of dollars), efficient, and transparent than blockchain. Cryptocurrency trading is in its beginning stages and folks are only now being introduced to it.
However, there are a range of altcoins, which are alternatives to Bitcoin and growing in market share and value, and therefore are worth taking note of. Some of the top ranking altcoins include Litecoin, Ethereum, and Bitcoin Cash to name a few.
How to Trade Cryptocurrencies in UK?
AvaTrade is a leading UK cryptocurrency trading broker. It offers safety, security, reliability and transparency of transactions, much like the cryptocurrency networks themselves. Among the many benefits of trading UK digital currency at AvaTrade are the following:
- High leverage of up to
- Fully regulated UK online broker
- Quick and easy deposits and withdrawals
- Low fees, commissions and competitive spreads
- AvaTrade UK offers clients the finest retail trading platform on the market
- Digital currency trading around the clock, including the option of closing positions on Saturday and Sunday
Ways to Trade Digital Currency
You start with a Bitcoin wallet, purchasing BTC with fiat currency, and then exchanging BTC on a digital currency exchange platform to the Altcoins of your choosing. Unfortunately, this method of trading is cumbersome and involves multiple steps. This puts your trading activity at risk of being breached by third parties. Since you need multiple digital accounts to exchange the coins you have purchased, and to store them, the risk factor is markedly higher.
Hackers and cyber criminals prey on clients who jump through so many hoops to trade Bitcoin and Altcoin. The benefit of trading cryptocurrency at AvaTrade UK is that you don’t have to deal with any of that. First of all, no digital wallet is needed, since all the transactions are conducted by the secure online trading platform. We offer Secure Socket Layer (SSL) technology that fully encrypts all of your trading activity and personal information. Hackers cannot break through the ironclad security system we have in place.
All trading activity in BTC and Altcoin is conducted via contracts for difference (CFDs). These are derivative trading instruments which allow you to speculate on the relative price fluctuations of cryptocurrency without taking physical ownership of these financial instruments. You’re welcome to read up more on the advantages of trading CFDs at your leisure.
What Should You Watch out for While Trading Digital Currency?
Traders across Britain see the inherent value in Bitcoin and other cryptocurrency. By including digital currency in your financial portfolio, you can protect against the devaluation of your financial assets listed in GBP. Since so many retailers and individuals are now accepting digital currency as an internationally accepted payment option, it has real value.
Across Asia, countries are now approving usage of cryptocurrency on a widespread basis. For example, the Philippines, South Korea and Japan are but three countries that have fully regulated cryptocurrency trading in some or other form. This is a big boon to this nascent market. In the early days, the dark web – the grey market of the Internet – was the primary proponent of digital currency. Banks and governments risk losing control of the financial markets by ignoring cryptocurrency, but traders understand how important it really is.
People used Bitcoin as a way of conducting anonymous transactions for legitimate and nefarious purposes alike. As Bitcoin’s popularity grew, its legitimacy improved accordingly. Now, land-based businesses and e-commerce operations are adopting cryptocurrency-friendly platforms and operations across the board. Thanks to the smart contract benefits of cryptocurrency and blockchain, digital currency is rapidly growing.
The actions of speculators can drive cryptocurrency prices higher or lower. Geopolitical uncertainty can drive traders and investors away from conventional assets like gold, silver and the USD, in favour of cryptocurrency like Bitcoin. Over the years, China has featured prominently in the cryptocurrency debate. Back in 2013, China was going to boycott Bitcoin trading and this resulted in the price of the cryptocurrency dropping by as much as £300.
By 2014, Bitcoin exchanges were no longer allowed to receive deposits from banks and financial exchanges. By 2017, the PBOC was looking to block token offerings via ICOs on Chinese bourses. However, there appears to be a slight relaxation of these rules in China as reported by the official news agency. Nonetheless, activities taken by central banks and governments can have a direct bearing on the prices of digital currency. At current market cap values, figures in excess of $173 billion have been reported and that number is growing all the time. Bitcoin’s market cap comprises approximately 57% of the cryptocurrency market.
Whether you invest in digital currency by purchasing BTC, ETH, LTC, BCC or ETC and hold it in your digital wallet, or you trade it as a CFD, it is an invaluable component of a financial portfolio.
Top Tips For trading Cryptocurrency at Avatrade Uk
As with all trading opportunities, it’s a clever idea to buy low and sell high. It works the same with cryptocurrency trading. Fortunately, AvaTrade UK makes it easy for you to trade cryptocurrency regardless of the size of your bankroll. The most important tips for trading cryptocurrency are as follows: Follow macroeconomic indicators, news reports and analysis of digital currency trading at all times. You can act on market movements and profit accordingly.
Two types of analysis are important with cryptocurrency trading. These include technical analysis and fundamental analysis. Technical analysis relates to graphs, charts and related research for cryptocurrency trading. As for fundamental analysis, it is an examination of all factors that relate to the cryptocurrency market. These are typically macroeconomic factors
Getting Started with Cryptocurrency Trading at AvaTrade
Now that you know what drives markets, you can use this information to profit from digital currency trading. There is good and bad news circulating in cryptocurrency markets, notably China’s desire to impose penalties on digital currency trading platforms, and the rush to purchase digital currency as a result of ongoing tensions with North Korea. This results in dramatic price volatility on a day-to-day basis. Traders can benefit from this volatility by including cryptocurrency in a trading portfolio.
There are many different types of digital currencies available on the markets, including BTC, LTC, ETH and others. A caveat is in order: digital currencies are highly unstable and are susceptible to large crashes at a moment’s notice. By the same token, they can rise in value pretty quickly and generate returns that are largely unheard of in the financial markets. The short-term success of Bitcoin and Ethereum has been unprecedented in 2017. But what lays ahead remains unknown. Regardless of the current performance, the technology that drives cryptocurrency a.k.a. blockchain is here to stay.
So Why Choose Us for Your Cryptocurrency Trading?
AvaTrade is leaps and bounds ahead of the competition. We offer many benefits that other trading platforms simply don’t. Here’s what you can expect from us:
- Short Selling–Short Selling – short selling allows you to generate profits while markets are falling. By hedging that prices will fall in a falling market, you can generate profits.
- Auto Trading Functionality – Auto Trading Functionality – the use of pre-programmable trading bots or algorithmic trading programs are available. This cutting-edge technology allows you to copy (Zulutrade) the trading of professional traders, copy their trades or trade socially. It’s your call.
- leverage– Leverage – AvaTrade UK offers generous leverage to traders. This means it is easy for you to borrow funds from us to place your trades. Your required margin is much smaller when you have leverage available.Cash in with AvaTrade – trade cryptocurrency Today!