Cryptocurrencies

Digital Assets for a New Era of Trading

Cryptocurrencies have redefined how value is created, transferred, and traded in the digital age. Built on blockchain technology, these decentralized assets operate outside traditional financial systems, offering both innovation and volatility in equal measure. Bitcoin, launched in 2009, was the first to introduce this model — a peer-to-peer digital currency designed to bypass intermediaries. Since then, the landscape has expanded to include thousands of other cryptocurrencies, each with unique purposes and varying degrees of market traction.

Some tokens are designed for payments or network participation, while others support decentralized applications or serve as governance tools within their ecosystems. Although many are lightly traded, the most prominent cryptocurrencies have grown into globally recognized instruments that are actively speculated on, much like traditional currencies, equities, or commodities.

Popular Cryptocurrencies to Know

At the core of the crypto market is Bitcoin (BTC) — the original and still the dominant digital currency by market capitalization. Its role as “digital gold” has remained central, often setting the tone for the broader market.

Next is Ethereum (ETH), widely regarded for its technological innovation. As the first blockchain to introduce programmable smart contracts, Ethereum has become the foundation for a range of decentralized applications (dApps) and has fueled the rise of decentralized finance (DeFi).

Other notable names include:

Ripple (XRP): Designed to streamline cross-border payments and challenge traditional systems like SWIFT.

Litecoin (LTC): Created as a lighter, faster alternative to Bitcoin, often referred to as “digital silver.”

Dogecoin (DOGE): What began as a parody evolved into a cult favorite, driven by community enthusiasm and widespread adoption.

How to Trade Cryptocurrencies

There are two primary ways to engage with the crypto market:

Buying and Selling the Asset Itself
This involves purchasing actual tokens through a cryptocurrency exchange. While it offers full ownership, it also requires technical know-how — such as using digital wallets, managing private keys, and navigating the risk of irreversible transactions in the event of user error.

Speculating via CFDs (Contracts for Difference)
A more accessible alternative for many traders, CFDs allow you to speculate on price movements without owning the underlying asset. There’s no need for a wallet or direct exposure to token transfers. Instead, traders can go long or short on cryptocurrency prices, using leverage to potentially amplify outcomes — though this comes with its own risks.

At Investico, cryptocurrency trading is done exclusively through CFDs.

Trading Example: Taking a Short Position on Bitcoin

Suppose you expect Bitcoin’s price to fall. You open a short CFD position, selling three contracts at a market price of $16,000 per BTC.

If Bitcoin drops to $14,400, your position gains $1,600 per contract — a total of $4,800.

If Bitcoin rises to $17,600 instead, the same $1,600 move works against you, resulting in a $4,800 loss.

This example highlights the directional flexibility of CFD trading, along with the importance of managing both risk and reward.

Why Traders Turn to Crypto CFDs

Traders are drawn to cryptocurrency CFDs largely for their 24/7 market access. Unlike traditional assets, crypto never sleeps, allowing for greater flexibility and real-time responsiveness across time zones.

The market’s inherent volatility also plays a role. Frequent price swings create opportunities for short-term strategies — though they require disciplined risk management.

CFD trading offers directional freedom, with the ability to go long or short without restrictions, and leverage allows traders to increase exposure with less capital. When used wisely, it adds flexibility without the need to own the asset outright.

Risks to Consider

Volatility cuts both ways. While price swings can create opportunity, they also increase the likelihood of significant losses — particularly when trading with leverage. Wide spreads and sudden market movements are also more common in crypto than in traditional assets.

Risk management is critical. At Investico, traders are equipped with tools to set stop-losses, monitor exposure, and stay informed — but sound judgment and discipline remain key.