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This website (www.excentral.com/eu) is operated by Mount Nico Corp Limited, a Cyprus Investment Firm, authorized and regulated by the Cyprus Securities and Exchange Commission with CIF license number 226/14. The company is located at Agiou Athanasiou, 66 Toumazis Linopetra Building 4102, Limassol, Cyprus.

 

Mount Nico Corp Limited owns and operates the “eXcentral” brand.

 

Risk Warning:

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.92% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Past performance does not constitute a reliable indicator of future results. Future forecasts do not constitute a reliable indicator of future performance. Before deciding to trade, you should carefully consider your investment objectives, level of experience and risk tolerance. You should not deposit more than you are prepared to lose. Please ensure you fully understand the risk associated with the product envisaged and seek independent advice, if necessary. eXcentral does not issue advice, recommendations or opinions in relation to acquiring, holding or disposing of any financial product. Mount Nico Corp Limited is not a financial adviser and all services are provided on an execution only basis. Please read our Risk Disclosure document.

 

Regional Restrictions:

Mount Nico Corp Limited offers services within the European Economic Area (excluding Belgium) and Switzerland.

 

Mount Nico Corp Limited does not issue advice, recommendations or opinions in relation to acquiring, holding or disposing of any financial product. Mount Nico Corp Limited is not a financial adviser and all services are provided on an execution only basis.

Cryptocurrencies

What is a cryptocurrency?

A cryptocurrency is a digital asset that is attached to a blockchain network and provides some type of utility. The function of the cryptocurrency can vary. In some cases, it is as simple as being a store of value, similar to gold. In others the cryptocurrency is meant to hold transactional value in the same way that U.S. dollars, or Euros, or Pound Sterling do. And in others the cryptocurrency is used to power the blockchain network and the decentralized apps that run on it. But no matter what utility or use the cryptocurrency has, there is one thing that all have in common. They are all traded openly in cryptocurrency markets based on supply and demand and on the perceived value of the cryptocurrency and its blockchain.

How to trade cryptocurrencies?

The traditional way to trade cryptocurrencies is on a cryptocurrency exchange. There are both centralized and decentralized versions of these, but they do share in common the need to work with cryptocurrency wallets, private keys, and wallet addresses. For those who are unfamiliar with all these, and with technology in general, trading cryptocurrencies in this fashion can be a frustrating and even scary prospect. However, it is also possible to speculate on the price movements of cryptocurrencies by using a financial derivative called a contract for difference (CFD). With CFDs, there is no ownership of the underlying cryptocurrency and no need to deal with confusing technology. In fact, trading with CFDs in this way makes trading cryptocurrencies no more complicated than trading a stock.

Popular cryptocurrencies

While various cryptocurrencies come and go from the top 100 and even the top 10 (there are nearly 10,000 cryptocurrencies), there are some that remain popular over time. The king of the cryptocurrencies is Bitcoin. It was the very first, created in 2009, and has remained the largest by market capitalization by far since then. The next most popular is Ethereum, and it is also the second largest by market capitalization. It is a smart contract blockchain and is used for a large number of things, including decentralized exchanges, decentralized applications, decentralized finance, and most recently non-fungible tokens. Beyond these two, you’ll find out that there are several cryptocurrencies that have also stood the test of time so far. These include:

  • Ripple
  • Litecoin
  • Dogecoin
  • Cardano

Why trade cryptocurrencies?

Cryptocurrency trading presents great potential opportunities. Because this is a new asset class, it is still quite undeveloped and that means cryptocurrencies often see large moves in either direction. The cryptocurrencies also appear to follow the classical technical patterns quite well, so traders who are comfortable analysing the charts of currencies, stocks, and commodities will be right at home studying the charts of cryptocurrencies and identifying potential entries and exits. Plus, it is always good to be able to diversify your portfolio into something new. Cryptocurrencies do not correlate tightly with any other asset class, so they provide excellent diversification.

Investing vs. Trading Cryptocurrency

Cryptocurrency investors are more risk averse than traders. They fear losing money and are willing to give up some potential gains if it means that their capital remains safer. In addition, the investor has a longer time horizon. They may think of holding onto their cryptocurrencies for years, perhaps accumulating more any time the market dips. Traders on the other hand, rarely hold their positions for more than a few weeks, and it is far more common to see a trader buy and sell within the same week, or even within the same day. Because cryptocurrencies frequently make double-digit percentage moves it isn’t difficult to capture significant gains in a single day. Finally, investors tend to focus more on the fundamentals, in the case of cryptocurrencies this would be the use case and adoption, whereas traders use technical analysis in their trading.

Benefits and Risks

There are a number of benefits to trading in cryptocurrencies, and ironically some of the benefits are also risks. The primary benefit and risk of cryptocurrency trading is the potentially large and sometimes random moves made by cryptocurrencies. Another benefit is that cryptocurrencies are global in nature, and anyone anywhere can trade them. It is also possible to start trading cryptocurrency CFDs with a very small amount of money. On the other side, risks include the threat of hackers, exchange rate risk in the various cryptocurrencies and leverage risks at those brokers who offer leverage.

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