Blockchain Based Trading Coming To Cryptocurrency Market

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This article will provide traders with a guide to trading cryptocurrency CFDs. It will explore: significant cryptocurrencies (and not just Bitcoin), reasons why you should consider trading CFDs on cryptocurrencies, an explanation of how to purchase Bitcoin, Litecoin trading, Ethereum investing, and much more!

What is Cryptocurrency? – A Brief History

Cryptocurrency is a type of ”digital asset” or ”digital currency”. It does not exist in the physical sense (as is the case with regular fiat currencies such as the Dollar and the Euro). Cryptocurrency not regulated or managed by any financial authorities or banks in the same way as traditional currency, but is mostly self-regulated, through the use of various encryption techniques. Furthermore, this process is powered via the internet, with users within associated networks providing the verification that enables the transactions to occur.

The genesis of what we now know as cryptocurrencies transpired back in 2009, and it all began with the launch of Bitcoin, the proto-cryptocurrency. Bitcoin was originally proposed as an electronic payment system based on cryptographic proof. The cryptographic proof came from the emerging technology of the blockchain — a kind of list of digital signatures that provide computational evidence describing the entire transaction history of each Bitcoin.

This public chain of ownership allows peer-to-peer transactions, without any need to entrust a third-party with the task of processing the payment. This lack of any kind of third party operating in a single, supervisory role means that Bitcoin is a decentralised digital currency. Back in 2009, some market commentators dismissed this new, virtual currency as a mere fad, a transitory reaction to the subprime crisis that had racked the global economy back in 2008.

But as Bitcoin has grown in value and credibility over the years, interest in this new type of currency – and the technology framework that underpins it – has blossomed. As more investors have embraced Bitcoin over the years, its value has been driven higher, which in turn has driven greater interest in this asset class. This has led to a breathtaking increase in value and volatility.

As a consequence of all of this, a large number of alternative digital currencies have arrived on the scene (and on some occasions have departed just as quickly), based on the innovation of the blockchain or such similar concepts. In early 2020, the combined value of all cryptocurrencies was estimated to be around $8 billion; by March 2020 this had ballooned to around $25 billion.

2020 proved to be a remarkable year for Bitcoin, and the cryptocurrency market in general. Having never been above $1,000 before 2020, Bitcoin broke above $6,000 in October of 2020 and by early December had rocketed above $10,000. By the end of that month, it set a record level of $19,783, climbing rapidly ahead of the launch of CME and CBOE futures contracts in the cryptocurrency.

The launch of these Bitcoin contracts on mainstream exchanges ushered in a new era, offering the first chance to trade cryptocurrencies on regulated platforms in the US — but it also generally coincided with a marked decline in the fortunes of Bitcoin.

Though volumes of the Bitcoin futures contracts grew steadily in the months after their launch — offering greater and greater and liquidity to traders — the price of Bitcoin fell into a persistent downtrend. By February of 2020, Bitcoin had plunged to below $6,500. By December 2020, that value had shrunk to below $3,500.

Also in December, the crypto market’s market cap plummeted from just under $180 to $152 billion within a 24 hour period, with many spectators comparing the major crash to the infamous dot com crash of the early 2000s.

What Are the Other Significant Cryptocurrencies?

Bitcoin was by far the earliest cryptocurrency, arriving more than two years ahead of the second cryptocurrency, Namecoin. The success of Bitcoin has led to a massive proliferation in digital currencies in recent years, and today there are literally hundreds of cryptocurrencies in existence. One of the most interesting aspects of these new currencies is the lack of control by any single body. Traditional fiat currencies are governed by central banks that may operate independently of a national government, or at the behest of the government.

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The FED (Federal Reserve) has the power to increase the supply of US Dollars, for example. The degree of decentralisation can vary from one cryptocurrency to another – as we shall see – but, in general, there is no central authority that plays an analogous role to a central bank with regards to cryptocurrencies. We’re now going to take a look at four of the other major cryptocurrencies available.

Ethereum (or Ether), is the largest rival to Bitcoin, based on percentage share of total cryptocurrency market capitalisation. Other significant players in the field include Bitcoin Cash, Litecoin, and Ripple, to name a few. Cryptocurrencies are quoted against the US Dollar (USD) and the Euro (EUR) – two of the world’s most widely-used currencies.

Cryptocurrency Codes

The following list shows you the codes used to represent these major cryptocurrencies against the US Dollar:

  • Bitcoin against the Dollar – Code: BTC/USD
  • Ether against the Dollar – Code: ETH/USD
  • Bitcoin Cash against the Dollar – Code: BCH/USD
  • Litecoin against the Dollar – Code: LTC/USD
  • Ripple against the Dollar – Code: XRP/USD

Similarly, the list below shows the codes for the major cryptocurrencies against the euro:

  • Bitcoin against the Euro – Code: BTC/EUR
  • Ether against the Euro – Code: ETH/EUR
  • Bitcoin Cash against the Euro – Code: BCH/EUR
  • Litecoin against the Euro – Code: LTC/EUR
  • Ripple against the Euro – Code: XRP/EUR

Why Trade CFDs on Cryptocurrencies?

Cryptocurrencies are made possible via the emerging technology of the blockchain – the public ledger that keeps a record of all transactions (or similar consensus ledger systems). Since the outset, the potential of both this new type of asset and the technology in general, has engendered interest in specialist quarters.

In recent years, cryptocurrencies have begun to attract attention from a much wider audience, as Bitcoin has been accepted as a means of payment in increasingly more places. Cryptocurrencies have also begun to generate a lot of interest as an alternative investment. A large part of this is down to headlines generated by the huge leaps in Bitcoin’s value. The price of Bitcoin began in 2020 with a worth of around $1,000, rocketing to more than $19,000 by December of that same year.

This new asset space gained further credibility when established exchanges like the CBOE and CME launched futures contracts in Bitcoin. Many people gain an exposure to cryptocurrencies by simply putting money into them – that is, buying the actual digital currency. There are downsides to this, however. Processing times for buying a cryptocurrency are slower than the instant fills that typify a regular Forex (FX) trade; they are unregulated; and there have been some scare stories of compromised Bitcoin and Ethereum wallets.

You can easily sidestep all these concerns by trading cryptocurrencies via CFDs. Using CFDs allows very fast transaction times, which is useful for such a volatile market. For instance, Admiral Markets UK Ltd is authorised and regulated by the Financial Conduct Authority (FCA), so that Bitcoin CFD trading with this broker is regulated in the same manner as normal FX trading.

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How to trade Bitcoin CFDs

Bitcoin is the eldest child in the cryptocurrency family. Dating back to 2009, this makes it substantially older and more established than its nearest cryptocurrency rival in terms of capitalisation. Because it is the most mature cryptocurrency, it shouldn’t come as much of a surprise that it generates the most headlines. In 2020, those headlines were plentiful, on account of Bitcoin’s remarkable growth in value. You can track Bitcoin’s 2020 gains in the chart below:

Source: MetaTrader 4 platform – BTC/USD daily chart – Data Range: 11 Apr, 2020 – 7 Dec, 2020

One way to profit from such increases in value is to actually purchase Bitcoin and store it in a Bitcoin wallet, with the aim being to sell it later at a higher price. A much simpler way to speculate on the value of Bitcoin is to trade BTC/USD using CFDs. All that’s required then is to open a live trading account, and you can then readily trade BTC/USD from a chart using a trading platform such as MetaTrader 4 (MT4) or MetaTrader 5 (MT5)

It’s worth stressing how volatile Bitcoin can be. Valuations in early 2020 pulled back substantially from the highs seen at the end of 2020, and this correction has been accompanied by some wild swings in price. Some traders might approach such volatility with caution, while others might interpret it as a trading opportunity, and others might see potential in shorting the price and looking for further falls. The choice, of course, is yours.

Learn to Become a Bitcoin Cash CFD Trader

Bitcoin Cash is what is known as an altcoin — a virtual currency that works fundamentally in the same manner as Bitcoin. In fact, Bitcoin Cash is simply an offshoot of Bitcoin, resulting from a hard fork in the blockchain. A hard fork is effectively a divergence in the transaction record into two separate and incompatible chains, each governed by a different set of rules. The hard fork in Bitcoin that created Bitcoin Cash arose from a bottleneck within the Bitcoin network, caused by the size of the blocks.

This constraint on capacity created a problem of higher fees and delays in transactions, and led to a section of the Bitcoin community seeking to increase the size of each block in order to ameliorate this scalability problem. Another section of the community wanted to keep things as they were, and in August 2020, the blockchain split. Bitcoin Cash adopted larger blocks in a new branch of the blockchain, and mainline Bitcoin continued with the original chain.

The clash is as much an ideological one as it is a technical one, with issues of decentralisation and security at the core of the argument. To keep tabs on how the price of Bitcoin Cash has changed over time, people trading with Admiral Markets simply need to follow these easy steps:

  • Login to their MT4 or MT5 trading platform with their Admiral Markets trading account
  • Right-click on the ‘Symbols’ window
  • Select ‘Show All’
  • Search for BCH/USD in the list
  • Right-click on this and select ‘Chart Window’

Source: MetaTrader 4 – BCH/USD Daily Chart – Data Range: 26 Dec, 2020 – 7 Feb, 2020

Litecoin Trading

Now that you understand the process of purchasing crypto CFDs, you might want to know the history of some leading coins. Litecoin began in 2020, when it was created by Charles Lee, whilst he was still an a employee at Google. Litecoin was, for a while, the second-largest cryptocurrency, gaining a reputation as being the silver to Bitcoin’s gold. It has in recent years been eclipsed by other newer cryptocurrencies though. Litecoin’s core aim was to provide an alternative to fiat currency for payment.

Though Litecoin is technically very similar to Bitcoin, it does offer faster transaction times and lower transaction fees, meaning that it is more suitable for smaller transactions. At the time of writing, Litecoin is the sixth-largest cryptocurrency in terms of market capitalisation. Aliant Payment Systems, a US-based payment services merchant, announced in February 2020 that they were adding Litecoin to their range of services, alongside Ethereum and Bitcoin.

Ethereum Investing

What is Ethereum? Ethereum (also interchangeably referred to as Ethereum and ETH) is a decentralised, blockchain-based computing platform. Which is to say, where Bitcoin is a currency pure and simple, Ethereum is a whole lot more. It takes the technology at the heart of Bitcoin – the tamper-proof public ledger known as a blockchain, and run by a network of nodes – and uses it as the infrastructure for a system that proposes to turn the way the cloud works on its head.

Rather than apps, payment services, and cloud storage being operated by single parties, Ethereum proposes a network wherein no single entity governs these processes. To use this network, you need Ether. Ether is a cryptocurrency that allows you to pay for transactions and services within the Ethereum network. You can therefore think of Ether as being the fuel that powers the platform.

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Ethereum vs Bitcoin

Ethereum offers substantially faster transaction times compared to Bitcoin, owing to its shorter block time – which is the mean amount of time for the network to generate another block within the blockchain. This also means lower transaction fees compared with Bitcoin.

Perhaps most interesting of all is that Ethereum offers smart contract functionality – a new technology that has been opened up by blockchains. Basically, a smart contract enforces the terms of a relationship with cryptographic code. Ethereum has quickly grown in popularity, and is currently the second-largest cryptocurrency by market capitalisation ($17 billion at the time of writing).

Ripple and XRP

What is Ripple? Ripple (sometimes also called Ripples or XRP) is a payment protocol that enables peer-to-peer money transfer. Like Bitcoin, it uses a public ledger for security that is constantly validated by a network of independent servers. Ripple is also the name of the company that runs the protocol, headquartered in San Francisco. Ripple is also used interchangeably for the native digital currency of the protocol.

The Ripple system was conceived as having a wider scope than Bitcoin, purporting to allow fast, secure financial transactions of pretty much any type. It doesn’t just support XRP, but all currencies in fact. Ripples are the tokens that support the payment system, and they are the third-largest cryptocurrency by market capitalisation (at the time of writing).

Users need to have a small reserve amount of XRP on their account to act as an obstacle for hackers attempting to flood the network with fake accounts. For similar reasons, each transaction incurs a tiny XRP charge to preclude a flood of fake transactions. Ripple does not use mining like Bitcoin to create new tokens (see the mining section below for more information).

Instead, the founders created 100 billion XRP at the beginning and stated that no more would be created, based on the rules of the protocol. Somewhat controversially, a large chunk of that XRP remains in the hands of the founders. There are questions of how decentralised the protocol actually is, but at the same time, this cryptocurrency and payment system has garnered attention from mainstream financial institutions in a way that has eluded other rival virtual currencies.

How Does Mining Fit into All of This?

If you have a passing familiarity with either Bitcoin or cryptocurrencies in general, you have likely come across the concept of ‘mining a digital currency’. In this context, what is mining exactly? To answer that question, we need to examine the creation of cryptocurrency. The terminology originated from Bitcoin and stems from the fixed number of Bitcoins that will ultimately exist (21 million) according to the Bitcoin protocol. Only a certain number of these have been ‘unearthed’ so to speak. Mining involves unearthing new cryptocurrencies, and this actually happens as a reward.

This ‘reward’ is an economic incentive given to a miner for the work completed in terms of creating new blocks of validated transactions, and therefore contributing to the upkeep of the network. It was also designed as an initial mechanism for distributing coins in the intentional absence of a central authority.

Cryptocurrencies rely on nodes. These are computers or servers that work together to exchange transactional information around the network. A mining node is effectively trying to win a race to solve a computational puzzle — an exhaustive search of possible inputs that when combined with data in the current block and passed through a cryptographic hash function, will give an acceptable solution.

The first node to do this ‘wins’ the race and adds a new block to the blockchain. This provides a new hash for the next block that defines the upcoming puzzle to be solved. The reward is a certain number of the cryptocurrency in question. For Bitcoin, this is currently 12.5 Bitcoin (at the time of writing). Solving the puzzle is made intentionally difficult to prevent someone going back to alter information in older blocks.

Modifying a past block in this way would also require you to redo the puzzle solving for all the newer blocks chained after it. The difficulty involved makes it extremely unlikely that such an attacker could keep up with the addition of new blocks by honest nodes. Boiling it all down to the nuts and bolts, the process was designed to issue a steady stream of Bitcoin, while also maintaining the credibility and security of the transactional history – without relying on oversight from some central authority.

The original Bitcoin proposal by Satoshi Nakamoto actually introduced the mining term, stating that: ”the steady addition of a constant amount of new coins is analogous to gold miners expending resources to add gold to circulation”.

Trading CFDs on Cryptocurrencies

Is the mining of Bitcoin profitable? Or should you instead mine Ripple or another cryptocurrency?

The short answer is: it’s not profitable for most people anymore. The Bitcoin protocol aims to yield a steady flow of tokens (one every ten minutes). It follows that the more people mining, the greater the difficulty of success. So back in the early days of Bitcoin, it would have been possible for an individual to profitably mine Bitcoin.

The competition now is so fierce though that extremely powerful, dedicated computer hardware is a necessity, running 24 hours a day. As you can imagine, this comes with an attendant cost in electricity that is substantial. Rather than mining as individuals, people pool their resources to set up ‘mining farms’. These are data centres running thousand of machines, located in areas with low electricity costs.

As an individual, it is actually much more convenient to trade the valuation of a cryptocurrency by using CFDs. Trading CFDs offers a quick, simple, and versatile way to speculate on the price of a variety of major cryptocurrencies. Now that you’re up to speed with the big names, let’s move on to actually getting started with trading cryptocurrencies.

How to Connect to a Cryptocurrency CFD Trading Account in MT4 or MT5

  • Open a Live Trading Account
  • Download MT4 or MT5 to use as your cryptocurrency trading platform
  • Open the platform and click on the ‘File’ tab at the top left of the screen
  • Select ‘Login to Trade Account’ and enter your trading account details
  • Open the cryptocurrency CFD chart of your choice
  • Click ‘New Order’ when you want to buy or sell

You can read more about opening an account and logging in to MetaTrader with article on How to Open a MetaTrader 4 Account.

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Where Do I Find Cryptocurrency CFDs in the MetaTrader 4 Trading Platform?

If you can’t see the cryptocurrencies you want immediately in MetaTrader, just go to the MarketWatch window on the left-hand side of the platform. In that window, you should see a list of market symbols. This may not be an exhaustive list of all the markets that are available for you to trade with Admiral Markets, however. To see this list, just right-click in the ‘MarketWatch’ window and select ‘Show All’. You should now see cryptocurrency CFDs in the list of prices, as shown in the image below:

Source: MetaTrader 4 – BTC/USD hourly chart – Market Watch – Date Accessed: 8 February 2020

To launch a cryptocurrency chart, just click on the symbol and drag into the chart window on the right. Alternatively, right-click on the cryptocurrency of your choice and select ‘Chart Window’.

How to Open and Close a Position in the Ethereum Cryptocurrency CFDs

Placing an order on a cryptocurrency is very easy with MetaTrader 4. Let’s run through an example of how to open a cryptocurrency position using Ethereum. For this example, we used an enhanced version of MT4 by downloading and installing the MetaTrader 4 Supreme Edition (MT4SE) plugin. The MT4SE plugin is free to download, and gives your platform a big boost in terms of the available number of indicators and expert advisors.

Cryptocurrency Invest Example: Opening an ETH/USD Position

For this we used the Mini Terminal EA. Once you have installed MT4SE, you should see this listed as ‘Admiral – Mini Terminal’ in the list of expert advisors within your ‘Navigator’, as shown in the image below:

Source: MetaTrader 4 platform with the Supreme Edition plugin installed – A Mini-Terminal order ticket for ETH/USD – Date Accessed: 8 February 2020

First we opened a chart for the ETH/USD, and then double clicked on Admiral – Mini Terminal to launch the EA. As you can see, this gives you a small order ticket. We then chose ‘1 lot’ as the order size, and then by pressing ‘CTRL’ and then clicking in the S/L field (that is, the stop-loss field), we then opened up the S/L calculation dialogue box that you can see below the mini terminal in the image above.

This function allows you to specify the amount of risk you want to take on board with this this crypto position. You can define this as either as a flat amount in your account’s base currency, or as a percentage of your account’s free equity. The mini-terminal will then calculate the stop level for you that best matches your specified amount of risk.

Then, it’s as simple as clicking ‘Sell or Buy’ to take a position in your chosen cryptocurrency CFD. Optionally, you can also set a take profit level and/or a trailing stop. So, once you have taken a position in the cryptocurrency of your choice, how do you then go about closing the position? There’s more than one way to go about this. Let’s first look at closing just part of the position:

Example: Partial Closing of a ETH/USD Position

Sometimes, it can be beneficial to reduce your exposure by closing off a portion of your open position. You might, for example, want to realise some profit on a winning position, or perhaps lighten your size on a losing trade. Either way, by partially closing, you retain some exposure to future price moves. When you have opened a position you will see lines marked on the relevant cryptocurrency chart that represent your trade, and any associated stop-loss or take profit orders.

Source: MetaTrader 4 – Price data from Admiral Markets – ETH/USD hourly chart – Date Accessed: 9 February 2020.

In this example, a ‘Buy’ trade was placed, and our position is shown with a green box. Had we chosen to sell, this would be a red box instead. Clicking in this box opens a web dialogue window which offers you a variety of options, such as to amend any stop-loss or take profit orders you may have. We clicked on ‘Partial Close’, and you can see in the image above the dialogue that this option presents. We entered 0.5 into the Volume field, which would allow you to close off half of the 1 lot open position.

Example: Total Closure of ETH/USD Position

Closing your whole position is no more complicated than making a partial closure. All you have to do is make sure that your trading size is the same as the open position, and then deal in the opposite direction. We originally bought 1 lot of the ETH/USD to open the position. To close this, we would need to sell 1 lot of the ETH/USD. Just as in the example above, traders could click on the green box that represents their open position and this time, just click on the red ‘Close Order’ button, without first clicking ‘Partial Close’.

Source: MetaTrader 4 – Price data from Admiral Markets – ETH/USD hourly chart – Date Accessed: 9 February 2020.

An Easy Way to Get Started

So, now you’ve read about the different cryptocurrencies available to traders and how to trade them with CFDs, how do you take your first steps into the world of cryptocurrency trading? One smart way is to do so via a risk-free demo trading account. This allows you to explore the functionality of your chosen trading platform, and place orders on live cryptocurrency CFD prices, but without risking any money, until you feel confident enough to open a real position with a live trading account.

Trade Cryptocurrency CFDs With Admiral Markets

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Admiral Markets enables professional traders to trade 24 hours a day, 7 days a week with the EUR and crypto cross, as well as the ability to go long or short on any cryptocurrency CFDs, with no actual crypto assets required for trading. Trade CFDs on BTCEUR, ETHEUR, XRPEUR, BTCUSD, and many more! Click the banner below to open an account and start trading!

About Admiral Markets
Admiral Markets is a multi-award winning, globally regulated Forex and CFD broker, offering trading on over 8,000 financial instruments via the world’s most popular trading platforms: MetaTrader 4 and MetaTrader 5. Start trading today!

This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.

What is OTC cryptocurrency trading? How does the over-the-counter cryptocurrency market work

OTC (Over The Counter market) market. Transactions on the OTC market take place outside of regulation or outside of exchanges. Transactions are made by telephone, computer networks and other means of data transmission. Most over the counter transactions are made through the trade organisers, but unlike exchange trades, in the over the counter market the organiser is not liable in case of default by one of the participants. The most famous platforms are the automated system of quotations of the National Association of securities dealers (Nasdaq Composite), trading platforms based on the Bloomberg information system, for example a platform for currencies trading – Tradebook FX.

Figure 1 – Scheme of interaction between buyers and sellers on the OTC market

Advantages of the OTC market. What good in over-the-counter trading?

Why the over-the-counter market is so attractive? Primarily it’s because of non-standard lots, commissions, regulation… We often hear that Warren Buffett bought a share in Heinz Craft for $7 billion, Abramovich bought a controlling stake in Chelsea sports club for $10 billion or Prokhorov sold a stake in Norilsk Nickel for $3 billion.

How such transactions become available? If such a volume of funds will be brought to the exchange it will cause the growth or fall of the asset by a significant amount. Such non-standard lots are sold or bought on OTC platforms by one investor or a pool of investors. The price of the transaction is often focused on the exchange. But it could be pretty substantial (by 10 percent) and will differ depending on the economic situation.

Figure 2 – Scheme of purchase of the enterprise by a pool of investors (primary market)

Сryptocurrency OTC market. Over-the-counter cryptocurrency trading.

The same thing happens in the cryptocurrency world. There are information systems that receive data about available lots, contractors agree with the terms and conclude a deal. The most popular ways of over-the-counter trading with crypto assets are the following:

– Making transactions through the professional intermediaries. It is still considered as one of the most frequently used. An intermediary in such transactions is a broker specializing in the implementation of large transactions. Information platforms allow you to set different parameters, so you can find the best seller or buyer for certain tokens.

– Transactions through specialized chat rooms. It is interesting to note that the first over-the-counter transaction in the history of the cryptocurrency market was concluded within a specialized Bitcoin-otc chat. The largest, oldest and most popular service for over-the-counter cryptocurrency transactions is LocalBitcoins.

– Making a purchase during the token sale (ICO, initial coin offering, or IEO, initial exchange offering). Transactions are made without the participation of any intermediaries with the help of smart contracts. Buying a large amount of tokens, you can receive a serious discount.

– Making transactions via “dark pools”. It is important to mention the fact that most of the specialized exchange platforms have special closed sections, which can be accessed only by big investors. In these sections investors have the opportunity to buy and sell large volumes of tokens without placing orders on the exchange and without scaring small investors.

– Making transactions through the exchange offices and ATMs (or cryptomats, such as those that have a decentralized Deex cryptocurrency exchange http://bitomat.online). In the crypto world, there is a specific need for over-the-counter transactions in crypto-Fiat transactions. Many companies declare that they have the ability to purchase or sell a cryptocurrency using a plastic bank card. But in many countries for such a purchase/sale even if they are not prohibited directly by law, can either limit the amount of the transaction or block the card. And here exchangers come to help you. Counterparties can fiat money to each other separately from crypto assets through the OTC platforms.

The guarantor of transactions in fiat world are the large banks and other professional participants of this market. For crypto assets, due to the anonymity of the majority of its participants, such a scheme is not suitable. There is another scheme. On most OTC platforms the execution of transactions is guaranteed by escrow accounts and smart contracts which are automatically executed in compliance with the agreements laid down in these contracts.

Figure 3 – Distribution of shares of fiat currencies within the OTC transactions

Bloomberg journalists conducted an analysis of the OTC market and found that hedge funds and other financial institutions prefer to buy and sell cryptocurrency as a result of private transactions, not on crypto-exchanges. Another specificity of the cryptoworld is that large financial organizations are attracted by the opportunity to buy “pure” bitcoins that have never been used in criminal activities on the OTC market. According to the Ikigai hedge fund individual investors can pay for such coins by 20% more than usual.

As a conclusion, we would like to note that any trading carries big risks. In the cryptocurrency OTC market, the most acute issue is the trust and integrity of intermediaries (brokers, exchangers…) which check contractors and help to avoid unintentional participation of the client in questionable or criminal transactions. And if the “white” services neutralize such risks thorough KYC (know your customer – know your customer), the customers of the gray OTC market’ segment are not controlled by any regulators and have to act at their own risk. On the other hand, gray OTC platforms are not defeated by regulatory sanctions. There is a good example. In 2020 Chinese regulators together with the restrictions to conduct of the ICOs banned the work of the cryptocurrency exchanges, but the restrictions did not affect the functioning of the OTC grey market.

Cryptocurrency OTC market and decentralized DEEX crypto exchange.

Following the principles of decentralization, security and anonymity DEEX offers crypto investors all the best. In fact, our crypto exchange is a decentralized p2p platform, not the usual centralized Chinese crypto-Forex with twisted volumes. All transactions are transparent, real, visible in the blockchain and are real transactions of specific users, not trading robots. However, many users have questions about the initial entry into the cryptocurrency business. Where to buy cryptocurrency? How to buy bitcoin with credit card? The cryptocurrency exchange rates offered by numerous centralized crypto exchanges are truly extortionate, especially for small amounts and when buying cryptocurrencies by bank cards.

In April 2020 DEEX will offer a solution! We are opening a secure, reliable, transparent OTC platform based on ETH and Ethereum smart contracts. You will be able to safely buy and sell cryptocurrencies by bank cards, bank transfers in several countries of the world! And all this without the risk of facing with a cryptocurrency scammer! Pure math, nothing personal!

The next stage in the development will be the platform will be the opportunity to work with other cryptocurrencies in addition to ETH. In the near future we are implementing a private club to work with a proven OTC-changers “on the ground”. The cryptocurrency OTC market is truly large, and is probably comparable in volume to 10 percent of the turnover shown on coinmarketcap. By the way, the turnover that you see on coinmarketcap and other crypto-currency trackers and listings is only the numbers drawn by Chinese crypto-Forex. Of course, there are no such trades on cryptoexchanges. But it is on OTC platforms. Realizing that transactions in the OTC segment in the cryptocurrency market is a new trend, the major Chinese crypto-Forex BANANA recently opened such a platform.

We are waiting for you on the OTC DESK DEEX! Buy crypto safe, together with DEEX!

Best Cryptocurrency Trading Platform

Shanthi Rexaline
Contributor, Benzinga

What’s the newest asset class taking the investment world by storm? Cryptocurrency. Lack of regulation is its biggest appeal. However, that may change, given a recent call for regulating this segment.

Though it is a big hit with investors, especially because of the record run of Bitcoin, the most popular of all the digital currencies, there have been skeptics crying foul over the legitimacy of this investment class.

Note: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

The mushrooming of cryptocurrency is proof that it’s moving toward mainstream acceptance. Apart from Bitcoin, there are a multitude of cryptocurrency options for traders such as Litecoin, Ethereum, Ripple, Bitcoin Cash, Dash, etc.

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TradeStation is for advanced traders who need a comprehensive platform. The brokerage offers an impressive range of investable assets as frequent and professional traders appreciate its wide range of analysis tools. TradeStation’s app is also equally effective, offering full platform capabilities.

  • Comprehensive trading platform and professional-grade tools
  • Wide range of tradable securities
  • Fully-operational mobile app
  • Confusing pricing structure to leave new traders with a weak understanding of what they pay
  • Cluttered layout to make navigating TradeStation’s platform more difficult than it should be
Current Promotion

Get $100 when you open an account with $500 or more

TD Ameritrade
  • Novice investors
  • Retirement savers
  • Day traders
$0 $6.95 for OTC Stocks $0
1 Minute Review

This publicly listed discount broker, which is in existence for over four decades, is service-intensive, offering intuitive and powerful investment tools. Especially, with equity investing, a flat fee is charged, with the firm claiming that it charges no trade minimum, no data fees, and no platform fees. Though it is pricier than many other discount brokers, what tilts the scales in its favor is its well-rounded service offerings and the quality and value it offers its clients.

  • World-class trading platforms
  • Detailed research reports and Education Center
  • Assets ranging from stocks and ETFs to derivatives like futures and options
  • Thinkorswim can be overwhelming to inexperienced traders
  • Derivatives trading more costly than some competitors
  • Expensive margin rates
Current Promotion

$600 cash & free trades for 60 days

Coinbase
  • All levels of traders
$0
1 Minute Review
Current Promotion

Currently no promotion

Interactive Brokers
  • Access to foreign markets
  • Comprehensive mobile app that makes trading simple
  • Wide range of available account types and tradable assets
$0.005 per share minimum $1 and maximum 0.5% of trade value; volume discount available $0
1 Minute Review

Interactive Brokers (IBKR) is a comprehensive trading platform that gives you access to a massive range of securities at affordable prices. With access to over 125 global markets, you can buy assets from all around the world from the comfort of your home or office. Options, futures, forex and fund trading are also available — and most traders won’t pay a commission on any purchase or sale. IBKR is geared primarily toward experienced investors. The platform offers limited assistance and can be a challenge for new users to become acclimated to. The broker’s tiered pricing strategy can also be frustrating for traders who focus on hourly or daily price movements.

  • Comprehensive, quick desktop platform
  • Mobile app mirrors full capabilities of desktop version
  • Access to massive range of tradable assets
  • Frustrating and confusing tiered pricing
  • Bloated website that makes finding information a challenge
Current Promotion

$200 refer-a-friend bonus

eTrade
  • Active traders
  • Derivatives traders
  • Retirement savers
$0 $0
1 Minute Review

E*TRADE is an online discount trading house that offers brokerage and banking services to individuals and businesses. One of the first brokers to embrace online trading, E*TRADE not only survived both the dot-com bubble and Recession — it thrived. You can choose from two different platforms (one basic, one advanced). E*TRADE is a suitable broker for traders of most skill levels, whether you want to buy mutual funds and hold them for decades or dabble in options swing trading. E*TRADE offers a library of research and education materials to help you out.

  • Sophisticated trading platforms
  • Wide range of tradable assets
  • Exceptional customer service
  • Limited currency trading
  • Higher margin rates than competitors
  • No paper trading on its standard platform
Current Promotion

Deposit or transfer $5,000 to get $100 back

What is Cryptocurrency?

Technically, cryptocurrency, also known as digital currency, are entries made in a digital ledger which cannot be tampered with unless they fulfill certain conditions. In other words, it is a peer-to-peer electronic cash system.

The best part is, it is decentralized, with no server or central authority. Cryptocurrency consists of each peer in a network of peers who have a record of the complete history of transactions and are privy to the balance of every account. Ultimately, cryptocurrency is a medium of exchange created and stored electronically in the blockchain using encryption techniques with a two-fold purpose:

  1. To control the creation of monetary units.
  2. To verify the transfer of funds.

This image showcases how cryptocurrency works:

Characteristics in the Cryptocurrency Market

Cryptocurrency is a medium of exchange created and stored electronically in the blockchain. Those interested in trading in cryptocurrency should have a good understanding of the characteristics of the cryptocurrency market.

Decentralized: This market is decentralized, with no government or bank involved. This ensures the privacy of transactions and the elimination of transaction charges. What’s more, there is no capital limit with respect to the transactions.

Limited Supply: The supply of cryptocurrencies are limited, as it cannot be created arbitrarily and will have to be mined by digital means. For example, Bitcoin founders have stipulated that only 21 million Bitcoins can be mined in total.

Why the Cryptocurrency Craze?

The cryptocurrency craze is reaching a feverish pitch due to several reasons, some of which are listed below:

  • It ensures fraud-proof transactions, given that everything is done digitally, which disallows counterfeiting or reversal of transactions by senders.
  • Settlement is immediate.
  • Lack of transaction fees, with the miners currently being compensated by the network.
  • Universal recognition, as it is not affected by interest rates, exchange rates, charges, etc.

Cryptocurrency Terms

Block: In simple terms, block is like a page of a record or ledger. Blocks are files where data concerning a digital currency network is stored permanently.

Blockchain: It is the list of all transactions in a peer-to-peer network.

Mining: Mining is a computationally-intensive process the computers or nodes in a cryptocurrency network complete to verify the transaction record. In return, miners receive digital coins as compensation.

Mining Rigs: Computer system used for mining cryptocurrencies.

Node: Any computer that connects to a blockchain is called a node.

Cryptocurrency Exchanges: These are websites where cryptocurrencies can be bought or sold, or in other words, exchanged in return for other digital currencies or traditional currencies.

ICO: Initial Coin Offering, or ICO, is selling a new digital currency or token at a discount by a company to raise money. It is the means by which a new cryptocurrency venture raises funds.

Cryptocurrency Wallet: A software program used to store private and public keys which are used to send and receive digital currencies and monitor their balance by interfacing with various blockchains.

ITRADER – Ready to start trading?

This website is operated by . a company bearing registration number SC517838, having a registered office address at and by a limited liability company incorporated under the laws of bearing company registration number 136374, having its registered address at regulated by the International Financial Services Commission (IFSC), license number 60/322/TS/19.
Payments are processed by on behalf of
Due to regional restrictions, we can’t offer services for US, Canada, and some other residents.

Risk Warning:
CFDs are complex instruments and carry high level of risk to your capital due to leverage. Trading on such instruments may not be suitable for all investors, so please ensure that you fully understand the risks involved. Please seek independent advice if necessary considering your investment objectives and level of experience. You should not risk more than you are prepared to lose. Please ensure you read through our terms and conditions carefully before making CFD’s/Forex investments.
To read our full Risk Disclosure click here

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