Cryptocurrency Glossary

Pips are the units used to measure movement in the price of a cryptocurrency, and refer to a one-digit movement in the price at a specific level. Generally, valuable cryptocurrencies are traded at the ‘dollar´ level, so a move from a price of $190.00 to $191.00, for example, would mean that the cryptocurrency has moved a single pip. However, some lower-value cryptocurrencies are traded at different scales, where a pip can be a cent or even a fraction of a cent.

Kaspersky Internet Security defends you from malware infections, spyware, data theft and protects your online payments using bank-grade encryption. If you want to spend cryptocurrency at a retailer that doesn’t accept it directly, you can use a cryptocurrency debit card, such as BitPay in the US. Bitcoin is an innovative payment network and a new kind of money. Copyright © 2026 FactSet Research Systems Inc.Copyright © 2026, American Bankers Association. SEC fillings and other documents provided by Quartr.© 2026 TradingView, Inc.

What are the risks of investing in crypto?

• Cryptocurrencies, like Bitcoin and Ethereum, are different from stocks and real money.
• The currency was developed by Satoshi Nakamoto – widely believed to be a pseudonym for an individual or group of people whose precise identity remains unknown.
• But they may not be able to see the identities of those involved in the transaction or, in certain cases, the contents of the transaction.
• Cryptocurrency trading involves speculating on price movements via a CFD trading account, or buying and selling the underlying coins via an exchange.
• Fees will vary by payment method and platform, which is something to research at the outset.

There are thousands1 of cryptocurrencies out there, with hundreds being introduced daily, so it can be confusing to categorize. However, there are generally four types of cryptocurrencies out there. Blockchains address that problem by having a tamper-resistant ledger of who owns what that anyone can verify without the need for a centralized intermediary.

Overstock, an e-commerce platform, was among the first sites to accept Bitcoin. You can place an order via your broker's or exchange's web or mobile platform. If you are planning to buy cryptocurrencies, you can do so by selecting "buy," choosing the order type, entering the amount of cryptocurrencies you want to purchase, and confirming the order. Developed in 2015, Ethereum is a blockchain platform with its own cryptocurrency, called Ether (ETH) or Ethereum. IG International Limited is licensed to conduct investment business and digital asset business by the Bermuda Monetary Authority.

Bitcoin is open-source; its design is public, nobody owns or controls Bitcoin and everyone can take part. Through many of its unique properties, Bitcoin allows exciting uses that could not be covered by any previous payment system. Mining computers select pending transactions from a pool and check to ensure that the sender has sufficient calvenridge funds to complete the transaction. This involves checking the transaction details against the transaction history stored in the blockchain. A second check confirms that the sender authorised the transfer of funds using their private key. Blockchain is an encrypted public ledger through which digital assets can be transferred, recorded, and stored.

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It does so by combining two concepts of blockchain technology – digital signatures and hash functions – to create a tamper-proof trail of who owns what in order to avoid the double spend problem. Cryptocurrencies work by combining hash functions and digital signatures. Crypto is an emerging field, not unlike the technology sector in the 1990s. There are plenty of brilliant ideas in the crypto world, but not every blockchain innovation will find its way to mainstream use. So, if you’re planning on investing in cryptocurrencies, proceed with a healthy dose of caution.

Nomura to tighten risk controls at Laser Digital after crypto-related losses

And cryptocurrency investments are subject to far less regulatory protection than traditional financial products like stocks, bonds, and mutual funds. The risks of loss from investing in CFDs can be substantial and the value of your investments may fluctuate. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how this product works, and whether you can afford to take the high risk of losing your money. The difference between a digital currency and a cryptocurrency is that the latter is decentralised, meaning it is not issued or backed by a central authority such as a central bank or government.

Trading platforms

The spread is the difference between the buy and sell prices quoted for a cryptocurrency. Like many financial markets, when you open a position on a cryptocurrency market, you’ll be presented with two prices. If you want to open a long position, you trade at the buy price, which is slightly above the market price.

There are thousands of options, and it's better to spread your investment across several currencies. Ripple can be used to track different kinds of transactions, not just cryptocurrency. The company behind it has worked with various banks and financial institutions. There are over 2000 cryptocurrencies available to buy and sell, though most have little value. Of these, bitcoin, ether (the token of the Ethereum network), ripple, bitcoin cash (an offshoot of bitcoin) and litecoin are among the most valuable by market capitalisation. It’s important to read the details on your chosen trading platform to ensure you understand the level at which price movements will be measured before you place a trade.