$11,100 $2,775.00
The key difference is that with Bitcoin Mini CFD you can trade one-tenth the size of the standard Bitcoin CFD contract. What is Bitcoin?
Bitcoin is a decentralised cryptocurrency or peer-to-peer digital payment system which is used as a method of investment as well as transaction for other currencies, services or products.
Initially launched in 2009 by an anonymous internet user or group known only as “Satoshi Nakamoto,” the virtual currency has grown rapidly since its inception.
The value of early Bitcoin transactions were negotiated by miners on the bitcointalk forums with each Bitcoin at the time worth an estimated $0.06.
As Bitcoin has become more widely used and as greater quantities of Bitcoin have been mined the price has risen sharply since early 2013. Buying Bitcoin vs Bitcoin trading
There are two main ways to invest in Bitcoin online; you can open a virtual wallet and buy Bitcoin through the blockchain at its current market value or you can trade on price movements of Bitcoin by opening a CFD Trading account.
When you buy Bitcoin on an exchange, it is similar to investing in any other physical asset and you will own the underlying instrument which you can then sell at a later date, should the value of the asset rise.
When you trade Bitcoin as a CFD, you are speculating on the price movement of the underlying Bitcoin market.
The price of Bitcoin will be quoted in established currencies, primarily USD, and you will not own the underlying instrument. Additionally you will be trading on leverage which allows you a greater market exposure without tying up large amounts of capital.
Trading When you trade Bitcoin you can go long as well as short You won’t own the underlying asset so don’t need to set up a virtual wallet When you trade CFDs on Bitcoin you are trading on leverage, this means you have a larger exposure to the market with less upfront capital. Remember leverage can magnify profits as well as losses. Buying When you buy Bitcoin you own the underlying asset and will purchase your chosen amount of Bitcoin at full market value You will purchase Bitcoin on an exchange, this will require you to open a virtual wallet to store your Bitcoin It can be expensive to withdraw or fund your virtual wallet, some exchanges charge fees for doing so Setting up an account and arranging purchase of Bitcoin can be time consuming and overly complicated What is the City Index policy on Bitcoin forking?
In the event that the current bitcoin splits into two, new bitcoins are created, this is known as a hard fork.
We will generally follow the bitcoin that has the majority consensus of cryptocurrency users and will therefore use this as the basis for our prices.
In addition we will also consider the approach adopted by the exchanges we deal with, which will help determine the action we take.
We reserve the right to determine which cryptocurrency unit has the majority consensus behind them.
As the hard fork results in a second cryptocurrency, we reserve the right to create an equivalent position on client accounts to reflect this. However, this action is taken at our absolute discretion, and we have no obligation to do so.
If the second cryptocurrency is tradeable on major exchanges, which may or may not include the exchanges we deal with, we may choose to represent that value, but have no obligation to do so. We may do this by making the product available to close based on the valuation, or by booking a cash adjustment on client accounts.
If, within a reasonable timeframe, the second cryptocurrency does not become tradeable, then we may void positions that had previously been created at no value on client accounts.
Over periods of substantial price volatility around fork events, and we may take any action as we consider necessary in accordance with our terms and conditions including suspending trading throughout if we deem not to have reliable prices from the underlying market.
Important Notice:
Cryptocurrencies are not legal tender currency and trading of derivatives on cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.
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