The intentions of cryptocurrencies are to be more reliable, faster and cheaper to maintain than the standard, government backed money we have become accustomed to. And as they are directly exchanged between users, they do not require a financial institution to hold the money. They also allow users to see the transactions occur from being sent, to being received and delivered in complete transparency.None of this would be possible without blockchain technology.

Blockchain Technology:Cryptocurrencies are often confused with blockchain. Yet blockchain technology is essentially a shared computer system infrastructure which forms a decentralised network, which cryptocurrencies utilise. Whilst it is cryptocurrencies which forced blockchain into the limelight, blockchain has many other uses which companies are exploring, but is outside the scope of this introduction.
The future of Crypto:What excites many about the future for crypto is how it could become the main method of payment. In its earlier days it was widely critiqued as a method of payment, as it was assumed to be used by criminals on the dark web to evade the usual anti money laundering protocols. But, in recent years, it has become a more widely accepted method of payment for legitimate businesses and people. Cafe’s, online stores and even some shops now accept cryptocurrencies as a form of payment, although some crypto’s are more popular than others.
Bitcoin:It is generally agreed that Bitcoin was the original decentralised cryptocurrency, launched in 2009 by a pseudonymous developer called Satoshi Nakamoto. As recognition of crypto payments has increased, so has the number of digital currencies (which are in the hundreds and possibly in the thousands). Yet it is Bitcoin which remains the most popular, appeared in the most headlines and been discussed among people from all walks of life (who don’t trade) due to its breath-taking rallies and market crashes.So, what does this have to do with trading?
Large Speculators Enter the Ring:If a market moves, it catches the eye of speculators. And cryptocurrencies have a tendency to be volatile, which makes it even more appealing to some traders. Yet for even seasoned investors, digital currencies are difficult to find ‘intrinsic value’, with some arguing that they are a priceless commodity and others adamant they will go to zero.Even with fund managers, hedge funds and institutions speculating on crypto, the problem remained that platforms which offered digital currencies catered for payments and not speculators. Features such as stop loss, take profit, leverage and the ability to trade short were not available, which are common features professional traders required.Therefore, it was only a matter of time before CME were to launch bitcoin as a tradable futures contract. This allowed professional traders to speculate on the wild fluctuations of bitcoin, trade long, short or hedge their crypto holdings.
Bitcoin Futures Aren’t for Everyone:Whilst the introduction of crypto futures were an important step for speculators, large margin requirements, high prices and volatile fluctuations priced out most traders who didn’t have millions in their trading account. Yet this has paved the way for cryptocurrency CFDs (contract for difference) to be created which fixed these problems and opened crypto speculation up to retail traders.