Cryptocurrencies, such as Bitcoin and Ether, are continuing to gain significant media coverage. Recently several friends have been asking me whether I have an opinion on cryptocurrencies (I don’t!).
That said, I figured it might be time to create crypto-dedicated page for people to use a quick starting point for finding more information.
The volatility (price fluctuations) of Bitcoin and Ethereum are very large on a regular basis. Therefore, it is possible to win or lose large amounts of one’s capital very quickly, particularly if using leverage from a broker. Thus, extreme caution should be exercised!
Naturally, people are attracted to trading instruments touted as highly volatile by the media, because this plays to the human emotions of potentially making a big gain (a long shot).
I have not spent any time researching cryptocurrencies, however related articles regularly pop up on my Twitter feed. I will add links to them here if there seems to be helpful and/or interesting content.
- FXCM: What is Bitcoin? – a good graphical display of Bitcoin’s history and relevant statistics
- #Cryptocurrency Hashtag
- #Ethereum Hashtag
- Pelican Exchange: Crypto Update
- Wikipedia: What is Cryptocurrency
- Wikipedia: Tulip Mania in 17th Century
Here are some examples of stories that the media loves to publish:
- Bloomberg: Crypto Trader makes $200 million in 1 month
- ZeroHedge: Bitcoing going to $50,000
- CNBC: Ethereum crashes below $200; down 50% since June
- Zero Hedge: Bitcoin and Etherum fall heavily on ‘civil war’ fears – some price-time charts included in this article – they illustrate the kind of volatility one can expect in trading these instruments, and the type of events, such as software changes, can trigger the volatility
Where can you speculate on Bitcoin and Ether?
There are several UK-based brokers who offer the option to speculate in cryptocurrency prices – the speculation is done using “Contracts for Difference” [CFD] rather than in the actual cryptocurrency itself. ETX Capital and IG Markets are brokers I have used for trading forex in the past – both of them offer crypto trading. I have not traded crypto currencies with them, so do so at your own risk!
Here’s an article breaking down how the trading actually works.