For centuries, money existed in physical forms like coins or paper, used for everyday transactions. This changed in 2009 with the launch of Bitcoin, the first digital currency, introduced as open-source software. Cryptocurrencies, stored entirely in digital form on global servers, have since expanded, with new ones emerging regularly. Bitcoin remains the leading cryptocurrency, and at iMali CFD, you can trade it as a CFD.
The Origins of Cryptocurrencies
The concept of digital currency dates back to 1982, proposed by cryptographer David Chaum. He founded DigiCash in 1990, but the company folded in 1998. The modern era began with Bitcoin, a decentralized currency launched by the pseudonymous Satoshi Nakamoto. Unlike earlier centralized attempts, Bitcoin operates on a peer-to-peer network, secured by blockchain technology, where transactions are verified through digital signatures.
Despite concerns about misuse by illicit groups, blockchain and cryptocurrencies have gained support, with global companies and governments exploring their applications for secure, transparent transactions.
Key Cryptocurrencies
Bitcoin: Launched in 2009, Bitcoin pioneered decentralized digital currencies. New Bitcoins are created via mining, solving blockchain blocks, with difficulty adjusting every 2016 blocks. Only 21 million Bitcoins will ever exist, expected by 2140. Its price is highly volatile—reaching $70,000 in early 2025 but fluctuating widely, often 7x more volatile than gold.
Ethereum: Introduced in 2015, Ethereum is both a cryptocurrency and a platform for smart contracts. Ether started at $1 and peaked at $4,800 in late 2024, now trading around $4,200. Ethereum processes more transactions than Bitcoin and is widely adopted by institutions for its protocol. It aims to limit inflation to 0.5–2% using proof-of-stake.
Ripple (XRP): With a market cap of $90 billion, Ripple ranks third. Launched in 2013, it facilitates real-time currency exchange and transfers. XRP peaked at $3.50 in 2024 and now trades at $2.10. Banks like UBS and Santander use Ripple for its efficient cross-currency transactions, making it a promising asset for traders.
Dash: Originally Darkcoin, Dash launched in 2014 with a two-tier network for enhanced privacy and speed. Its market cap is $5 billion, with Dash coins at $350. Dash boasts an active community, with over 8,000 pages of discussions on BitcoinTalk, and a daily turnover of $200 million.
Litecoin: Created in 2011 by Charlie Lee, Litecoin is a Bitcoin offshoot with faster transactions and lower fees. It has a $10 billion market cap, with coins at $180. Litecoin plans to release 84 million coins, maintaining scarcity to support its value, and sees a daily turnover of $300 million.
The Cryptocurrency Market
The crypto market, though young, now exceeds $500 billion in daily trading volume across over 1,500 currencies. This volatility offers opportunities but demands caution. Unlike traditional markets, cryptocurrencies react to tech events like hacks or innovations, not central bank policies. A $100 million trade can significantly impact smaller coins, unlike in forex markets.
Trade Cryptocurrencies with iMali CFD
At iMali CFD, we offer CFD trading on top cryptocurrencies like Bitcoin, Ethereum, Ripple, Dash, and Litecoin. Our platform provides real-time charts, educational resources, and 24/5 trading access. Leverage up to 1:5 is available, but check our platform for the latest details.
Risks to Understand: CFD trading on cryptocurrencies is complex and volatile, with a high risk of losing your entire balance. Prices can swing dramatically, making these products unsuitable for inexperienced traders. Ensure you understand the risks before trading.