Bitcoin is a digital cryptocurrency that derives its value from supply and demand factors unique to this asset class. Bitcoin is available in a finite supply and therefore increases in price as demand increases. Demand stems from speculative sources and more practical sources, for example Internet purchases paid for in Bitcoin.
Bitcoin also has a tendency to react to market sentiment in more traditional markets such as equities and foreign exchange, increasing during periods of negative sentiment.
Price movements on Cryptocurrencies like Bitcoin or Ethereum are driven primarily by news and prevailing sentiment, i.e. the fear and greed of retail speculators. These sometimes dramatic shifts can lead to massive intraday price swings, making Cryptocurrency CFDs an exciting product for aggressive and experienced day traders.
The mazi finance Global Cryptocurrency CFD product allows traders to go long or short without actually holding the Cryptocurrency. This means traders can get exposure to the price of the Cryptocurrency without worrying about the security risks associated with storing it and the counterparty risk from the exchange. This is similar to trading Energy Futures such as oil rather than owning physical oil to speculate on its price.
The first and largest cryptocurrency, Bitcoin paved the ways for hundreds of similar currencies and boasts a market cap of over $100 billion.
The world's second-largest cryptocurrency, it is labelled by many as 'the next Bitcoin'. Ethereum has received international recognition and support from giant organisations.
Dash's focus is on instant transactions and owner privacy. Dash has an infrastructure that enables much faster transactions than other cryptocurrencies.
Designed by a former Google engineer to improve upon Bitcoin's technology, Litecoin offers quicker processing times and a larger number of tokens.
XRP is both a transaction network and crypto token which was created in 2012 as the go-to cryptocurrency for banks and global money transfers.
Dogecoin was founded by software engineers Billy Markus and Jackson Palmer, as a payment system. This coin began as a 'meme coin' and is now seen as a popular option for traders.
Opening Price3910.25 * 2 = USD $7820.50
Closing Price4200.50 * 2 = USD $8401.00
Gross Profit on TradeUSD $8401.00 - 7820.50 = $580.50
The price of Bitcoin CFD against the US Dollar is 3900.25/3910.25 and you decide to buy 2 contracts at 3910.25.
One month later Bitcoin CFD has increased to 4200.50/4210.50 and you decide to take your profit by selling your 2 contracts at 4200.50 each.
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