Bitcoin is a digital cryptocurrency that derives its value from supply and demand factors unique to this asset class.
Bitcoin is available in a finite supply and therefore increases in price as demand increases.
Demand stems from speculative sources and more practical sources, for example, Internet purchases paid for in Bitcoin. Bitcoin also has a tendency to react to market sentiment in more traditional markets such as equities and foreign exchange, increasing during periods of negative sentiment.
Virtual currency CFD’s are complex, extremely risky and usually highly speculative instruments. When trading such products there is a high risk of losing all your initial capital. You should consider whether you understand how virtual currency CFD’s work and whether you can bear the loss of the entire invested amount. The values of virtual currencies are subject to extreme price volatility and may result in significant loss over a short period of time. Prior to trading these instruments you should fully understand the true extent of the exposure to the risk of loss and take into consideration your level of experience