78% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Cryptocurrencies

Questions

Answers

  • What are cryptocurrencies?

    A cryptocurrency is a form of digital currency created from code that functions autonomously, outside of traditional banking and government systems. You can read more about cryptocurrencies here

  • What is bitcoin?

    Bitcoin is a type of cryptocurrency. It is a digital currency which operates outside the mandate of a central authority, and the first decentralized digital currency to use blockchain technology. You can read more about bitcoin here.

  • What is ethereum?

    Ethereum is a digital platform which allows users to build a range of decentralised applications. 'Ether' is the digital currency used on the ethereum network. Like bitcoin, ethereum works via a public blockchain network. You can find more information on ethereum in our article.

  • What cryptocurrencies can I trade?

    You can spread bet or trade CFDs on Bitcoin/USD and Ethereum/USD.

  • Where can I find cryptocurrencies on the desktop platform or mobile apps?

    On the web-based platform, click on 'Cryptocurrencies', available in the product library. On the mobile app, tap 'More' at the bottom-right hand corner, then tap Cryptocurrencies.

  • How can I apply for a cryptocurrency account?

    If you're new to CMC Markets, you can apply for a live account by filling in our application form. Please note that you can trade cryptocurrencies with CMC Markets through a spread bet or CFD account. If your application is approved and you've verified your email address and funded your account, you will be able to place your first cryptocurrency trade.

    If you're already a CMC Markets client, just click on 'Cryptocurrencies' in the top navigation toolbar on the platform.

  • Do I have to deposit money to open an account?

    You don't need to deposit any funds to open an account with us, but you will need to make a deposit in order to place your first cryptocurrency trade.

  • How secure is the web-based platform?

    We use the internationally accepted security system SSL (Secure Sockets Layer) for all account functionalities, including fund deposits and withdrawals. This system is automatic and you will receive an instant notification if your browser does not support it.

  • How can I close or reduce an existing cryptocurrency position?

    To close or reduce a position, select the red ‘Close Out’ X to bring up an order ticket. To close ‘All’ select ‘X’ on the aggregate row, or to close an individual trade select ‘X’ on the individual position row. To partially close a position, you will need to reduce the ‘Size’ of the trade. The wording at the bottom of the ticket will change to indicate that you are reducing your position rather than closing it.

  • Can I practise trading cryptocurrencies?

    Yes, cryptocurrencies are available on our demo account.

  • Do I need a cryptocurrency wallet to trade cryptocurrencies with CMC Markets?

    When you spread bet or trade CFDs, you don't take ownership of the underlying asset, instead you trade on the rising or falling price of the cryptocurrency. Therefore, you don't need a wallet to trade cryptocurrency products with CMC Markets.

  • What are the trading hours for cryptocurrencies?

    The trading hours for cryptocurrencies are 11pm Sunday to 9pm Friday.

  • What are blockchain forks?

    Blockchain forks are essentially a split in the blockchain network. Forks occur when the software of different miners disagree over the best way forward for the currency. It’s up to miners to decide which blockchain to continue using. If there isn’t a unanimous decision, this can result in the creation of two versions of the blockchain. There can be periods of increased price volatility around such events. For more information surrounding blockchain forks, read our article.

  • How do blockchain forks affect my account?

    The price of our cryptocurrency instruments are based on the underlying market. They are made available to us by the exchanges and market-makers with which we trade. In the event of a hard fork, we will generally follow the blockchain that has the majority consensus of cryptocurrency users. We will use this as the basis for our prices. We reserve the right to determine which cryptocurrency unit has the majority consensus. We will endeavour to notify clients of potential blockchain forks. However, it’s ultimately our clients’ responsibility to ensure they find out when these might occur.

    More information on our policy here.

  • What is bitcoin cash?

    Bitcoin cash (BCH) is a cryptocurrency and payment network created as a result of a hard fork with Bitcoin in December 2017. A hard fork occurs when members of the cryptocurrency community have a disagreement, usually regarding improvements to the software used within the network. In this case it was a disagreement around a proposal to increase the block size. After a fork, the blockchain splits in two and it is left to the miners and the wider community to decide which cryptocurrency to align themselves with. When the bitcoin hard fork took place, one bitcoin cash token was typically awarded for every bitcoin held (although some exchanges chose not to recognise bitcoin cash). Learn more about bitcoin cash

  • What is litecoin?

    Litecoin (LTC) is a peer-to-peer cryptocurrency that was set up by Charlie Lee (a former Google employee) in 2011. It was an early bitcoin spinoff, or ‘altcoin’ and initially intended for smaller value transactions than those made using bitcoin. Technically speaking, it was created to be almost identical to bitcoin, but it has some notable differences and improvements. For example, litecoin can process blocks up to four times quicker than bitcoin. It also requires more sophisticated technology to mine, but the total number of coins available has a much larger cap – it is currently set to 84 million, which is four times greater than bitcoin. Learn more about litecoin

  • What is ripple?

    Ripple (XRP) is a network that allows the transfer of any currency (including both fiat currencies and cryptocurrencies) around the world. It aims to ensure secure, fast and low cost transfers across the network, with no risk of fraud or chargeback. The network is considerably faster than bitcoin – it is able to settle transactions in just a few seconds. The minimum transaction cost is also much lower, which is one of the reasons that ripple has been increasingly adopted by banks for settlement. Ripple is also the name given to the native cryptocurrency (XRP) used on the ripple network. Learn more about ripple

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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.