Below is a glossary of terms that are used in the online trading industry. Select the first letter of the word you are seeking from the list above to jump to the appropriate section of the glossary.
What are cryptocurrencies?
Cryptocurrencies, also known as digital currencies, are virtual currencies that many analysts and experts believe will eventually replace paper money. The cryptographic technology (hence the name cryptocurrencies) makes the currencies extremely hard to counterfeit, which makes the currencies very enticing. Because the digital currencies are decentralized, and not regulated by any government agencies anywhere in the world, they have an independence that many traders like. However, no regulation also makes transparency a potential issue for other traders.
How does one use cryptocurrencies?
Different cryptocurrencies can be obtained in different ways. For example, Bitcoins, the most widespread digital currency, can be “mined” by users, although there is a limited number of new coins available for mining at any given time. Once they have been mined, they can be traded on forex exchanges for fiat currencies, or used as a form of payment online. Currently, more than 100,000 vendors and companies accept digital currencies as a valid form of payment, and as these cryptocurrencies increase in value, that number seems likely to grow. Many forex brokers, – including Fortrade.com – provide traders with the option of trading CFDs of the larger cryptocurrencies, such as Bitcoin, Ethereum, Dash, and Litecoin.