Cryptocurrency

Why trade Cryptocurrencies with Whitley?
Cryptocurrencies are an emerging market which have become increasingly popular as major cryptocurrencies like Bitcoin and Ethereum have entered the mainstream.

The majority of cryptocurrencies, also referred to as simply 'cryptos,' are powered by Blockchain technology. They differ from established fiat currencies in that they are decentralised assets currently unregulated or controlled by any one country, central bank or regulatory authority.

While cryptocurrencies are not accepted as legal tender in many countries around the world, their potential to change the wider financial landscape has made them impossible to ignore and has opened up investment and trading opportunities.

The Blockchain technology that drives most cryptocurrencies also has wider implications for everything from client-server models to food supply chains and enhanced cyber security protocols.

Trading cryptocurrencies is quite different from more traditional markets like Forex or Indices as, because they are relatively new assets, they are not influenced by many of the same forces as other more established markets.

There are a range of cryptocurrencies on the market, some better known than others and each with varying degrees of volatility.

What moves cryptocurrency markets?
Because cryptocurrency markets are so new, there are less correlating assets that drive price changes and because they have been designed as decentralised assets free from regulatory control, things like data releases, rate changes and political upheaval do not affect them as much as fiat currencies.

Cryptocurrency prices are sensitive to potential moves towards greater regulation as well as a range of factors like:

Disagreements within crypto communities over upgrades, for example when a cryptocurrency undergoes a hard fork (This can occur when its Blockchain diverges in two different directions)

Attacks on cryptocurrency exchanges which expose security flaws

News stories and rumours of greater central bank control or of countries potentially banning cryptos

There are a range of cryptocurrencies on the market, some better known than others and each with varying degrees of volatility.

Some of the cryptocurrency markets you can trade at Whitley include:
Bitcoin - the "original" crypto and still the market's most valuable coin plus Ethereum, Litecoin, Ripple, DigiByte and hundreds more

Is cryptocurrency trading for me?
Rather than trading on a cryptocurrency exchange and having to open a digital wallet (which can be difficult to set up and complicated to manage) to store actual coins, when you trade cryptocurrencies with Whitley you'll be speculating on market movement. This has a number of benefits over directly buying a particular cryptocurrency. You won't need a digital wallet and so won't be exposed to potential network hacks, and because you're speculating on price movement rather than owning the underlying asset you can go both long and short on cryptos.

Remember, cryptocurrency markets are some of the world's most volatile markets, with big price swings very common. When you trade cryptocurrencies at Whitley you can use all of the same smart risk management tools you can use on our more established markets. Cryptocurrency trading could be for you if you have a good understanding of the market and a strong trading strategy that relies on astute evaluations of potential risk.

Open Account