Digital assets secured by cryptography that operate on decentralised blockchains - covering Bitcoin, Ethereum, and thousands of altcoins traded on centralised exchanges, DEXes, and via CFDs at multi-asset brokers.
Cryptocurrency is a broad term for digital assets that use cryptographic protocols to secure transactions and record ownership on decentralised ledgers (blockchains). Bitcoin (BTC), launched in 2009, was the first, solving the double-spend problem without a trusted central authority. Ethereum (ETH), launched in 2015, extended the concept by adding programmable smart contracts, enabling an entire ecosystem of decentralised applications, DeFi protocols, NFTs, and stablecoins.
Traders access crypto markets through several routes. Centralised exchanges (Binance, Coinbase, Kraken) are custodial platforms where users deposit fiat and trade spot or derivatives. Decentralised exchanges (DEXes like Uniswap) allow non-custodial trading directly from wallets using automated market makers and liquidity pools. Multi-asset forex brokers offer crypto CFDs, providing access to BTC, ETH, and major altcoin price movements without managing wallets or private keys - suitable for traders who want crypto exposure within a familiar brokerage environment.
Crypto markets have characteristics that differ fundamentally from forex. They trade 24/7/365, including weekends and holidays - gaps and illiquid conditions can occur any time. Volatility is far higher: daily moves of 5–15% are common on Bitcoin and Ethereum; altcoins can move 30–80% in a single session. On-chain fundamentals - hash rate, exchange inflows/outflows, staking yields, whale wallet movements - provide a unique category of market intelligence unavailable in traditional markets.
The regulatory landscape for crypto is evolving rapidly. The EU's MiCA regulation (2024) provides the first comprehensive framework for EU-wide crypto rules. The US remains in regulatory flux between the SEC and CFTC over jurisdiction. Traders should verify the regulatory status of any platform they use and understand whether they hold actual coins (with private key custody) or derivative exposure.
Worked Example
A trader in Germany wants Bitcoin price exposure without managing a crypto wallet. They open a BTC/USD CFD through their multi-asset forex broker, depositing USD 2,000 and using 2:1 leverage to control a USD 4,000 position at BTC = USD 40,000. Bitcoin rises 12% to USD 44,800 - the CFD gains USD 480. On a USD 2,000 margin, that is a 24% return. The trader closes via the broker platform with no wallet interaction, but has no on-chain ownership and will not receive any hard-fork airdrop tokens.