What is crypto? | Learn to trade | Hummingbird
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70.6% of retail investor accounts lose money when trading CFDs with this broker. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Risk warning: 70.6% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
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What is crypto?

Cryptocurrencies are digital currencies that run on blockchains instead of banks. Here’s how they work, the main types you’ll come across, and how trading them differs from forex.

Money without a middleman

A cryptocurrency is a digital asset you can send directly to anyone, anywhere, without a bank in between. Instead of a bank keeping the records, every transaction is recorded on a blockchain.

Definition

A blockchain is a shared record of transactions, grouped into blocks and linked in order, that no single company controls.

How blocks link together
Block 1Transactions
Block 2Transactions + link to 1
Block 3Transactions + link to 2

Because each block links to the one before it, changing an old record would mean rewriting every block after it, on thousands of computers at once.

2009Bitcoin, the first cryptocurrency, went live
21 millionThe most bitcoin that will ever exist

The main types of crypto

There are thousands of cryptocurrencies, but most fall into a few groups.

BTC

Bitcoin

The original cryptocurrency, often compared to digital gold because its supply is fixed.

ETH

Smart contract platforms

Blockchains such as Ethereum and Solana that run apps and host thousands of other tokens.

$

Stablecoins

Tokens such as USDT and USDC that are designed to hold a steady value against a currency like the US dollar.

How crypto trading works

Like forex, crypto is quoted in pairs. BTC/USD is the price of one bitcoin in US dollars. Buy if you expect the price to rise, and sell if you expect it to fall.

Forex24 hours, 5 daysThe currency market closes at the weekend.
Crypto24 hours, 7 daysCrypto markets never close, including weekends and holidays.

On Hummingbird you can buy, trade and hold crypto alongside your forex positions, and deposit or withdraw in both crypto and traditional currencies.

Know the risks

Crypto prices can move sharply in minutes, and markets are less regulated than traditional ones. Only trade with money you can afford to lose, and consider starting in practice mode.

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