Digital assets
Cryptocurrency
Cryptocurrencies are digital assets that trade around the clock on platforms worldwide. This guide covers how they are quoted, how trading differs from forex and the main risks to understand.
Updated · FXPIPS Editorial Desk · Educational content, not investment advice
Data
Cryptocurrency prices
Delayed prices from CoinGecko for the largest cryptocurrencies, plus Bitcoin's daily price history.
Drivers
What moves crypto prices
01
Regulation and policy
Decisions by governments and regulators on how crypto assets can be issued, traded or taxed can have a large effect on demand and access.
02
Liquidity and risk appetite
Crypto assets have often been sensitive to changes in overall financial conditions, including interest rate expectations.
03
Supply rules
Each network has its own issuance rules. Bitcoin's supply, for example, is capped at 21 million coins, with new issuance falling over time.
04
Adoption and network activity
Use of a blockchain, developer activity and the availability of investment products can influence interest in an asset.
05
Market structure events
Exchange failures, security breaches and large liquidations of leveraged positions have caused sharp price moves in the past.
What cryptocurrencies are
A cryptocurrency is a digital asset recorded on a blockchain, a shared ledger maintained by a network of computers. Bitcoin, launched in 2009, was the first widely used example. Ether, the native asset of the Ethereum network, is another major one. Thousands of other tokens exist, with very different designs, purposes and levels of risk.
Stablecoins are tokens designed to track a reference asset, usually the US dollar. They are widely used for trading on crypto platforms, but they carry their own risks, including the possibility of losing their peg.
How crypto is quoted
Crypto prices are quoted like currency pairs. BTC/USD shows how many dollars one bitcoin costs; ETH/BTC shows the price of one ether in bitcoin. Pairs against stablecoins, such as BTC/USDT, are also common.
Illustrative example: if BTC/USD is quoted at 60,000.00, one bitcoin costs $60,000. Many platforms let you buy fractions, so 0.01 BTC would cost $600.
Where and when crypto trades
Crypto trades 24 hours a day, seven days a week, including weekends and holidays. There is no single exchange. Prices are formed on many separate platforms around the world, and the price on one can differ from another, especially during fast markets.
Ways to gain exposure include:
- Crypto exchanges and apps, where you can buy and hold the asset itself.
- Exchange-traded products in some jurisdictions that track crypto prices.
- Futures on regulated exchanges such as CME Group.
- CFDs from some brokers, although retail access to crypto derivatives is restricted in certain countries.
Contract basics and a worked example
Illustrative example: you buy 0.05 BTC at $60,000. Your position is worth 0.05 × 60,000 = $3,000.
- If the price rises to $63,000: profit = (63,000 − 60,000) × 0.05 = $150, or 5%.
- If the price falls to $54,000: loss = (60,000 − 54,000) × 0.05 = $300, or 10%.
Moves of this size within short periods have been common in crypto markets. With leverage, the effect on your deposit is larger still. A 10% move against a position with 5:1 effective leverage would reduce your equity by about 50%. The Leverage Calculator and Position Size Calculator can help you understand exposure.
How crypto differs from forex
| Feature | Major forex pairs | Cryptocurrencies |
|---|---|---|
| Trading hours | 24 hours, weekdays | 24 hours, every day |
| Underlying | National currencies backed by central banks | Digital tokens with network-specific rules |
| Typical volatility | Lower | Much higher |
| Price sources | Interbank and dealer quotes | Many separate exchanges |
| Regulation | Established frameworks | Varies widely and is still evolving |
Risks
- Extreme volatility: prices can rise or fall by large percentages in hours.
- Platform risk: exchanges can be hacked, fail or freeze withdrawals.
- Custody risk: if you hold your own tokens, lost keys usually mean lost assets.
- Regulatory risk: rules can change and differ between countries.
- Scams and fraud: be cautious of guaranteed-return schemes and unsolicited offers.
- Leverage can lead to rapid losses and forced liquidations.
You could lose all the money you put into crypto. Read Basic risk management before trading any volatile asset. This page is educational and does not recommend buying or selling any cryptocurrency.
This page is for education only and is not a recommendation to buy or sell any instrument. Leveraged products such as CFDs and futures can lose you more than you expect; check your broker's contract specifications and your local regulations.