Emerging over the last decade and poised as the asset class of the future, cryptocurrency provides a new system of transactions, which offers exciting prospects for live trading.
With new industries rapidly adopting blockchain technology, recent years have seen cryptocurrencies quickly rise in value - offering traders a greater opportunity than ever to get involved with these new instruments.
Pepperstone currently provides 5 cryptocurrency derivative products across all of our trading platforms, allowing you access to these markets wherever you are in the world, on any device.
Cryptocurrencies such as Bitcoin are much more volatile than traditional currencies and carry significant risks, which we've set out in more detail below. Please also note that you won't own or have any rights in the underlying currency when you trade with Pepperstone.
As the most popular asset in an emerging class, Bitcoin provides an opportunity to further diversify your trading through its self governing supply and demand. Reaching a market capitalisation of over $100 billion, Bitcoin has been growing into an increasingly used trading instrument, giving more opportunities than ever for trading.
In 2017, Bitcoin underwent a hard fork to solve scaling issues and in doing so created a new blockchain that resulted in the Bitcoin Cash cryptocurrency. Differing from Bitcoin in how it scales its protocol, this instrument has divided many enthusiasts and represents a step forward in crypto trading and the possibilities of solving technical issues with cryptocurrencies.
Ethereum is currently ranked as the second most valuable cryptocurrency in market capitalisation. Instead of focusing purely on transactions like Bitcoin, Ethereum serves a greater variety of industry uses giving it a competitive edge to other cryptos. These extended uses include smart contracts and blockchain application platforms, which have allowed Ethereum to have large price changes in recent months, making it a volatile instrument for clients to trade.
Short for “Digital Cash”, Dash was created in an attempt to improve the speed and anonymity of crypto transactions. Being the first cryptocurrency with a decentralised governance, Dash has been able to create an efficient payment system that has led to having higher liquidity than its counterparts, making it one of the most valuable instruments in this asset class.
Launched initially in 2011 as an alternative to Bitcoin, Litecoin uses a simpler algorithm for block generation to speed up transactions. This faster speed has allowed Litecoin to become a very popular trading instrument with an increasing market capitalisation in recent years.
Advantages of Trading Cryptocurrencies with Pepperstone:
- Leverage up to 5:1 for Professional Clients, and 2:1 for Retail Clients.
- No commission fees
- The ability to hedge on a single account
- To Access to institutional grade spreads and trade execution
Risks of Trading Cryptocurrencies:
- Leveraged trading puts your capital at risk. You could lose all, or a large portion, of your trading capital if the market makes a significant move against your current open position/s
- All trading involves risk
- Past performance does not guarantee future performance
- Tax benefits (if any) are subject to change and depend on your personal circumstances
- The cryptocurrency market is volatile - sharp and sudden moves in price could see you lose significant amounts of money very quickly