Examine cryptocurrency trading in more detail and start to understand what we mean by phrases like “cryptocurrency”: In contrast to traditional currencies, cryptocurrencies are digitally encrypted, decentralized forms of money that are not linked to or governed by a single entity like a government or central bank. Blockchain technology is how cryptocurrencies function. This distributed technology manages and records transactions across a number of machines. The security of this technology is one of its appeals. The act of speculating on cryptocurrency price fluctuations through a CFD trading account or purchasing and selling the underlying coins through an exchange is referred to as cryptocurrency trading. With no need for wallets or exchanges, you can trade a wide variety of cryptocurrencies and go long or short on Bitcoin, Ethereum, Litecoin, and Ripple.