It uses cryptography for security. Cryptocurrencies operate on a technology called blockchain. The blockchain is a decentralized ledger that records all transactions across a network of computers. This decentralized nature means that there’s no central authority, like a traditional bank, controlling the currency.

For example, Bitcoin is one of the most well – known cryptocurrencies. When you trade cryptocurrency CFDs (Contracts for Difference) on our platform, you’re speculating on the price movements of these digital assets. You don’t actually own the underlying cryptocurrency. Instead, you’re trading on the difference between the opening and closing price of a contract.

These digital currencies can be highly volatile. Their prices can change rapidly due to factors such as market sentiment, regulatory news, technological advancements, and even social media trends. This volatility, while presenting risks, also offers opportunities for traders to potentially make significant profits if they can accurately predict the price movements.