Trading CFDs involves a significant risk of loss that may not be suitable for all investors. Please ensure you fully understand the risks and take appropriate care to manage your exposure.
For more information please read our Risk Disclosure

Trading CFDs involves a significant risk of loss that may not be suitable for all investors. Please ensure you fully understand the risks and take appropriate care to manage your exposure.

Invest in Cryptocurrencies with Alvexo

Cryptocurrencies have taken the market by storm

Trading Cryptocurrencies is now one of the most popular types of investment. Rightly so too. With over 1500 coins and a total market cap of just over $500 billion this asset class is seeing massive forward momentum. With no third party involvement, lower charges and their appreciating value, traders are flocking to cryptocurrencies as a valid investment asset. Despite the number of cryptos in existence, only a handful at present hold a market capitalisation in excess of $10 billion and those are the ones drawing the most attention from trader and investors alike.

When did all this begin?

It all started with bitcoin – the world’s first ever and most famous virtual currency, being created back in 2008. Since then, bitcoin consumers can now use bitcoin and several other digital currencies to pay for items from firms such as Microsoft, PayPal and even Lamborghini, among others. In fact, even the Bank of Japan is now involved in bitcoin investments, having officially recognised it as a form of currency not to mention CBOE Global Markets’ introduction of bitcoin futures trading back in December 2017 that has allowed institutional investors more freedom in trading bitcoin.  So what is it, why should you trade it and how do you go about doing it? Let’s have a look…

What is a Cryptocurrency?

A cryptocurrency is a digital currency that uses encryption (cryptography) to regulate the creation of currency units and verify fund transfers operating independently of a central bank. Simply put, they allow for the purchase of goods and services. However, one of the salient differences is that there is no central bank regulating, printing out currency notes and minting coins.

1. So how are they created?

Well, they are created using a technique called cryptography, hence the name cryptocurrency. This makes them far more secure, less likely to be hit by fraud and removes the many intermediaries known to exist in traditional currency transfers.

2. So why is there a big rush to invest in Cryptos such as bitcoins?

Well, it is the next technological revolution in currency trading with many success stories already well documented. In fact, a $100 investment in bitcoin in 2009 would now be worth over $70 million!

3. You’re probably quite keen to get started right?

Ways to Invest in Cryptocurrencies similar to Bitcoin

The typical route towards bitcoin investments can be quite a difficult one. That’s because you need to be tech savvy to a certain degree, and find a trusted bitcoin exchange. Once you’ve found one that hasn’t been hacked you then need to open a bitcoin wallet. Safety concerns abound either from the exchange itself or finding a “cold storage” location in which to store them. With the recent hacks on several bitcoin exchanges traders have been searching for alternative routes to benefit from cryptocurrencies without directly purchasing them, thereby minimising the current security concerns. One way to invest in cryptocurrencies is to trade them with a broker like Alvexo. It is far easier to trade the changes in a cryptocurrencies price than owning them outright! how to start trade cryptocurrency  

Benefits to trading cryptocurrencies with Alvexo

1. You can go short, as well as go long

At the beginning of 2013, the price of bitcoin – the world’s premier crypto was just $13. In the middle half of 2017, its price rose a few dollars shy of $3,000. Having the ability and the right tool to go long and profit from any upside movement could have been very useful. However, in 2014 the price of bitcoin went from $1,000 to $200 in one year. Having the ability to short and profit from any downside movement could also have proved to be very useful.

2. You can use the power of leverage

Trading cryptocurrencies with Alvexo allows you to trade without investing the whole position-size up front. With leveraged trading you can essentially control a much bigger position as you only need a certain amount of margin to hold a position open. Of course, leverage can generate profits as well as losses. Be sure to manage risk carefully as cryptocurrencies belong to what is currently a volatile market.

3. You don’t need a cryptocurrency wallet

When trading cryptocurrencies with Alvexo you do not need a wallet, rather you use the same platform to trade currencies, commodities and stocks as you would traditional assets.

Frequently Asked Questions (FAQ)

1. Is trading cryptocurrencies safe?

All forms of trading can be risky. Cryptocurrencies are currently considered to be a volatile asset. That’s why Alvexo supports the use of stop loss orders to help manage risk.

2. Will I own virtual cryptocurrencies?

No. With Alvexo all you are doing is simply speculating on the changes in price of a given digital currency. You do not need to own it like you would using cryptocurrency exchange.

3. How are cryptocurrencies quoted?

As cryptocurrencies are considered a currency, they are quoted like a traditional currency pair. Usually as an example, bitcoin is quoted against the US dollar and typically has a symbol such as BTC/USD or just Bitcoin.   *Cryptocurrencies are traded on non-regulated decentralised digital exchanges and there is no specific European regulatory framework governing the trading in Cryptocurrencies. As Cryptocurrencies do not fall under the scope of MiFID, consequently, the Client is not entitled to the protections offered under the Investor Compensation Fund in relation to their trading activity that relates to Cryptocurrencies. Similarly, any complaints and/or disputes the Client may have against the company which relate to trading on such products (i.e. Cryptocurrencies) are not eligible and shall not be accepted for review/consideration by the Financial Ombudsman of the Republic of Cyprus.

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