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Bitcoin was the original cryptocurrency and was introduced in 2009. It’s also the most valuable and widely traded. Bitcoin’s code has been copied and amended by numerous other teams starting similar digital currencies – however, Bitcoin is still more valuable than all other cryptocurrencies combined.
Ethereum is a blockchain similar to the Bitcoin blockchain, but includes additional functionality that allows smart contracts and applications to run on it. This allows all the computers on the network to act as a giant decentralised computer, and third-party applications can be run by this giant computer.
Ripple is a company creating blockchain based solutions for the global banking industry. These solutions use Ripple’s own cryptocurrency, XRP, which trades freely like any other cryptos. Ripple is one of the most popular cryptocurrencies for trading as it is highly liquid and has recently had large price swings.
Litecoin, is the sixth most valuable cryptocurrency in the world. It is widely listed on exchanges, giving it good liquidity and price discovery. Litecoin is also highly correlated with Bitcoin, and often follows the Bitcoin price moves.
Cryptocurrencies are digital currencies that exist on decentralised ledgers, exchanges and blockchains. While there are now well over a thousand cryptocurrencies, active traders focus only on the most valuable cryptocurrencies, which are also the most liquid. Similar to Index CFDs, Cryptocurrencies can be traded via a derivative that allows traders to take a long or short position. Traders won’t own the underlying cryptocurrency, but they will ‘own’ any movement in the price when they hold a position.