Cryptocurrencies

Questions

Answers

  • What are cryptocurrencies?

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

  • What is bitcoin?

    Bitcoin is a form of cryptocurrency and the first decentralized digital currency to use blockchain technology to function outside of traditional banking and governmnet systems. Learn more about bitcoin here

  • What is ethereum?

    Ethereum is an open software 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; while Bitcoin is used to track ownership of currency, the Ethereum blockchain focuses on running the programming code of any decentralized application. Learn more on Ethereum here.

  • What cryptocurrencies can I trade?

    You can trade CFDs on a range of cryptocurrencies, including Bitcoin/USD, Ethereum/USD, Litecoin/USD, Ripple/USD and Dash/USD. View the full list of cryptocurrencies available to trade here.

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

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

  • How can I apply for a cryptocurrency account?

    If you're new to CMC Markets, you can apply for a live account – just complete our application form. Please note that you can trade Cryptocurrencies with CMC Markets through a CFD account. When your application has been 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.

  • 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 practice trading cryptocurrencies?

    Yes, cryptocurrencies are avaialble on our demo account. Login or set up a demo account here.

  • What do CMC Markets charge on converting foreign currency profit or loss into my home currency?

    Your account will be in your home currency. All positions are opened in US dollars and coverted to NZD at the prevailing level 1 mid price for the exchange rate +/- 0.3%

  • Do I need a wallet to trade bitcoin?

    When you trade CFDs, you don't buy or sell the underlying asset, instead you trade on the rising or falling price of the cryptocurrency. You don't need a wallet to trade CFDs on our cryptocurrency products. 

  • What are the trading hours for bitcoin?

    The trading hours for cryptocurrencies are Monday 12pm to Saturday 10am. 

  • What are blockchain forks?

    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. Read more on blockchain forks here

  • 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 reserve the right to determine which cryptocurrency unit has the majority consensus. 

  • What is bitcoin cash?

    Bitcoin cash is a form of cryptocurrency arising as a result a hard-fork of bitcoin. Although both cryptocurrencies use blockchain technology, the main difference for bitcoin cash is the size of the blocks within the blockchain; bitcoin cash increased the size limit to 8MB (vs. 2MB in bitcoin) allowing for transactions to be processed at a much faster speed. Learn more about bitcoin cash here.

  • What is litcoin?

    Litecoin is a form of digital currency and was an early bitcoin spinoff utilising blockchain technology. Litecoin has a  quicker mining process generating blocks up to four times faster than bitcoin. Litecoin also has a higher coin limit market cap (84 million vs. 21 million bitcoin). In this way, litecoin was designed for cheaper, smaller transactions, making it more efficient for daily use. 

  • What is ripple?

    Ripple (XRP) is  a network that allows the transfer of any currency (including both traditional and cryptocurrencies) around the world. It aims to ensure secure, fast and low cost transfers across the network with no risk of fraud of chargeback. The network is considerably faster than bitcoin - it is able to settle transaction in just a few seconds. The minimum transaction cost is also lower, making it more popular for banks to use for settlement. 

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