2017 was one the most significant years in the short history of cryptocurrencies. Despite being around since 2009, Bitcoin (BTC) and its peers received a surge of interest that saw the price of almost every digital coin rise exceeded all expectations.
For those invested in BTC, the move from $1,000 to almost $20,000 in the space of 12 months was validation that cryptos have a future. However, for those taking a closer look at the market, the entrance of BTC into the mainstream consciousness has had some other, interesting consequences.
One of the subtler yet potentially significant changes the crypto revolution of 2017 has brought about is on the trading industry. To be specific, online CFD trading.
CFD Trading Brings Cryptos into the Light
Otherwise known as contracts for difference trading, CFD allows investors to speculate on positive or negative price movements of a certain product, stock, bond or other asset.
Since online trading became possible in the mid-noughties, CFD trading has become one of the most popular endeavours for both the experienced and inexperienced. As well as CFD trading on 9,000+ instruments, online traders can access 24/5 support, receive live market reports and access the daily markets securely through purpose-built trading platforms.
In essence, the industry has become a commercial entity that’s now as accessible to low-level investors as it was the banking institutions 20 years ago.
As cryptos gradually became popular, new markets have opened up.
Although it’s still a niche part of the industry, crypto CFD trading is starting to emerge, allowing investors to speculate on the price fluctuations of leading digital coins.
However, unlike traditional exchanges where users are expected to purchase the underlying asset (i.e. owning BTC or another token such as XRP), CFD trades aren’t direct investments. This dynamic not only opens up more trading opportunities, it also helps companies and individuals stay within the law.
Moving Towards a Digital Spending Revolution
Although the majority of major economies haven’t outlawed cryptocurrencies, some have. Therefore, by using CFD options for certain digital coins, those involved aren’t infringing any local laws, because they are not actively buying or owning cryptocurrency.
For the trading sector, this has led to an increase in investment options. For cryptos, this innovation is the next step in the digital currency revolution. Although the ultimate aim of the crypto community is to have BTC or altcoisn as our default payment mechanism, all commodities are propped up by a network of additional support.
For example, gold is as treasured as a precious metal used in the jewellery industry as well as a tradable asset. The two feed into and, therefore, support each other.
The same is true of the financial sector. We use the dollar or pound to pay for things but it’s also traded by banks on the forex market. Again, the two mediums support each other. By becoming part of the CFD industry, crypto’s network is growing – and that will help it reach its ultimate goal of becoming a mainstream currency.
Therefore, while the 2017 price boom was great from a financial perspective, the wider implications are much more significant. By becoming a tradable CFD instrument, cryptos have moved a little bit closer to becoming an integral part of the world as a whole.