Blockchain Trading

Blockchain and cryptocurrency trading has boomed in the last decade owing to the decentralised, secure and efficient nature of the new technology. Arguably it all began with Bitcoin, but today there are hundreds of crypto coins with investing potential. In this guide, we explore how blockchain works, the pros and cons, plus alternative blockchain trading options.

Crypto Brokers

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Found 67 Brokers
Reliable and affordable trading since 2009. Join over 900,000 others trading on 400+ CFD products over assets like forex, gold, indices, cryptocurrency and shares from 0.0 spreads through TradingView, MT4 or MT5. Vantage is ASIC regulated and client funds are segregated. Open an account in under 5 minutes.
Demo Account
Yes
Regulated By
ASIC, FCA, CIMA
MT4 Integration
Yes
Min. Deposit
$200
Min. Trade
0.01 Lots
Crypto
Yes
Trading in the Uphold environment offers a one-stop-shop for all your crypto requirements.
Demo Account
Yes
Regulated By
FCA, FinCEN
MT4 Integration
No
Min. Deposit
$0
Min. Trade
$1
Crypto
Yes
NordFX offer forex trading with specific accounts for each type of investor. Spreads start from 0.0 pips while minimum deposits start at $10.
Demo Account
Yes
Regulated By
VFSC
MT4 Integration
Yes
Min. Deposit
$10
Min. Trade
$1
Crypto
Yes
Trade Forex on 0.0 pip spreads with the world's leading True Raw forex broker - IC Markets.
Demo Account
Yes
Regulated By
ASIC, CySec, FSA
MT4 Integration
Yes
Min. Deposit
$200
Min. Trade
0.01 Lots
Crypto
Yes
Skilling are an exciting new brand, regulated in Europe and beyond, with a bespoke browser based platform, allowing seamless low cost trading across devices.
Demo Account
Yes
Regulated By
CySec, FSA
MT4 Integration
Yes
Min. Deposit
100 £/€/$ or 1000 NOK, SEK
Min. Trade
0.01 Lots or 1 Share
Crypto
Yes
Coinmama is a popular cryptocurrency trading exchange, aimed at beginners and high-net worth investors.
Demo Account
No
Regulated By
FinCEN, FINTRAC
MT4 Integration
No
Min. Deposit
$30
Min. Trade
$30 to buy, $100 to sell
Crypto
Yes
BitMEX offer the largest market liquidity of any cryptocurrency exchange. The platform also offers ultra low trading costs and minimum deposit requirements.
Demo Account
Yes
Regulated By
Licensed in the Republic of Seychelles, company number 148707
MT4 Integration
No
Min. Deposit
0.001 BTC
Min. Trade
Varies upon the crypto traded and amount of leverage
Crypto
Yes
PrimeXBT is a Bitcoin-based platform offering highly leveraged trading in FX, indices, commodities, & cryptocurrencies.
Demo Account
No
Regulated By
MT4 Integration
No
Min. Deposit
0.001 BTC
Min. Trade
0.01 contract
Crypto
Yes
Finq.com offer a great all round service with trading on 2100+ assets and immediate bonus offers. Up to $4000 in Deposit Bonuses.
Demo Account
Yes
Regulated By
FSA
MT4 Integration
Yes
Min. Deposit
$100
Min. Trade
0.01 lots
Crypto
Yes
RaceOption is a binary options and CFD platform offering trading contests and prize giveaways.
Demo Account
Yes
Regulated By
MT4 Integration
No
Min. Deposit
$250
Min. Trade
$1
Crypto
Yes
TMGM is a competitive forex and CFD broker with a wide range of instruments, features and tools provided at low-cost.
Demo Account
Yes
Regulated By
ASIC, FMA, VFSC
MT4 Integration
Yes
Min. Deposit
$100
Min. Trade
0.01 lots
Crypto
Yes
Kucoin is a global crypto exchange offering spot and margin trading alongside lending services and trading bots.
Demo Account
Yes
Regulated By
MT4 Integration
No
Min. Deposit
$0
Min. Trade
0.0001
Crypto
Yes
Rockfort Markets is a New Zealand broker with a competitive range of assets, trading platforms and educational services.
Demo Account
Yes
Regulated By
FSP, FMA
MT4 Integration
Yes
Min. Deposit
$200
Min. Trade
0.01 lots
Crypto
Yes
Pocket Option is a global binary options broker with sleek proprietary trading platform and competitive range of assets.
Demo Account
Yes
Regulated By
IFMRRC
MT4 Integration
No
Min. Deposit
$50
Min. Trade
$1
Crypto
Yes
Pacific Union is a multi-asset broker offering trading via the MT4 and MT5 platforms.
Demo Account
Yes
Regulated By
Cyprus Securities and Exchange Commission (CySEC) and Seychelles Financial Services Authority (SFSA)
MT4 Integration
Yes
Min. Deposit
$50
Min. Trade
0.01 lots
Crypto
Yes
Nexo is a crypto platform with a range of blockchain-based solutions, including trading, lending, borrowing, and payment cards.
Demo Account
Yes
Regulated By
ASIC, FCEN
MT4 Integration
No
Min. Deposit
$10
Min. Trade
$30
Crypto
Yes
Pionex is a cryptocurrency exchange with impressive automated trading tools and bots.
Demo Account
No
Regulated By
FinCEN
MT4 Integration
No
Min. Deposit
$0
Min. Trade
0.1 USDT
Crypto
Yes
AdroFX is a regulated, global broker offering forex, CFD and crypto trading with MT4 access and attractive welcome bonuses.
Demo Account
Yes
Regulated By
FSA, BSSLA
MT4 Integration
Yes
Min. Deposit
$25
Min. Trade
0.01 lot
Crypto
Yes
Bybit is an established crypto exchange aimed at active online traders.
Demo Account
Yes
Regulated By
MT4 Integration
No
Min. Deposit
$0
Min. Trade
0.001
Crypto
Yes
OKX is a digital exchange offering trading on hundreds of cryptos across desktop and mobile applications with low fees.
Demo Account
Yes
Regulated By
VARA
MT4 Integration
No
Min. Deposit
10 USDT
Min. Trade
Variable
Crypto
Yes
Bitfinex is among the best crypto exchanges for experienced investors with a free mobile trading application and low fees.
Demo Account
Yes
Regulated By
MT4 Integration
Yes
Min. Deposit
$10,000
Min. Trade
$10 - $25
Crypto
Yes
IB Boast a huge market share of global trading. With a minimum deposit of $10,000 however, they remain an option for larger traders only.
Demo Account
Yes
Regulated By
SEC, FCA, IIROC, SFC
MT4 Integration
No
Min. Deposit
$10000
Min. Trade
$100
Crypto
Yes
Gemini is a leading crypto trading exchange with low fees and a long list of altcoins.
Demo Account
No
Regulated By
FCA
MT4 Integration
No
Min. Deposit
$0
Min. Trade
0.00001 BTC
Crypto
Yes
Paxful is a crypto trading exchange and digital wallet offering low fees and easy sign-up.
Demo Account
No
Regulated By
MT4 Integration
No
Min. Deposit
From 0.005 BTC
Min. Trade
10 USD
Crypto
Yes
Kraken is a top-rated cryptocurrency trading exchange offering the largest tokens and altcoins by market cap.
Demo Account
Yes
Regulated By
FCA, FinCEN, FINTRAC, AUSTRAC, FSA
MT4 Integration
No
Min. Deposit
$10
Min. Trade
Varies upon the crypto traded
Crypto
Yes
TP Global FX offers a long list of popular financial assets with spreads from 0.1 pips. With a focus on innovation and transparency, they are a growing brand.
Demo Account
Yes
Regulated By
SVG FSA, NFA, CAMA Nigeria
MT4 Integration
Yes
Min. Deposit
$200
Min. Trade
0.01 lots
Crypto
Yes
Global Prime is a multi-regulated trading broker offering 100+ markets.
Demo Account
Yes
Regulated By
ASIC, VFSC, FSA
MT4 Integration
Yes
Min. Deposit
AUD $200
Min. Trade
0.01 lots
Crypto
Yes
Trade.com offers thousands of tradable assets on desktop and mobile platforms.
Demo Account
Yes
Regulated By
FCA, CySEC, FSCA
MT4 Integration
Yes
Min. Deposit
$100
Min. Trade
0.01 lots
Crypto
Yes
Quotex offers a proprietary web platform that offers digital options and copy trading.
Demo Account
Yes
Regulated By
IFMRRC
MT4 Integration
No
Min. Deposit
$10
Min. Trade
$1
Crypto
Yes
Just2Trade offer high tech trading on stocks and options with some of the lowest prices in the industry.
Demo Account
Yes
Regulated By
CySEC, NFA, FINRA, Bank of Russia
MT4 Integration
Yes
Min. Deposit
$100
Min. Trade
0.01
Crypto
Yes
Videforex accepts deposits in a range of cryptos and fiat currencies. Payouts reach 95% per trade.
Demo Account
Yes
Regulated By
MT4 Integration
No
Min. Deposit
$250
Min. Trade
$1
Crypto
Yes
Zulutrade provide multiple automation and copy trading options across forex, indices, stocks, cryptocurrency and commodities markets
Demo Account
Yes
Regulated By
HCMC
MT4 Integration
Yes
Min. Deposit
Broker choice dependent but balance on ZuluTrade should exceed $100
Min. Trade
$1
Crypto
Yes
ActivTrades offers online trading on the MT4, MT5 and ActivTrader platforms. Over 93.60% of orders are executed at the requested price.
Demo Account
Yes
Regulated By
FCA, SCB
MT4 Integration
Yes
Min. Deposit
$500
Min. Trade
0.01 lots
Crypto
Yes
StormGain provides an online crypto trading platform, cloud mining tool, plus digital currency wallets and daily signals.
Demo Account
Yes
Regulated By
MT4 Integration
No
Min. Deposit
$50
Min. Trade
$10
Crypto
Yes
LQDFX offers online trading with multiple STP accounts and MT4 analysis tools.
Demo Account
Yes
Regulated By
MT4 Integration
Yes
Min. Deposit
$20
Min. Trade
0.01 lots
Crypto
Yes
RoboForex is a multi-asset online broker offering powerful trading aides.
Demo Account
Yes
Regulated By
IFSC
MT4 Integration
Yes
Min. Deposit
$10
Min. Trade
0.01 lots
Crypto
Yes
SimpleFX is a CFD broker offering its own SFX WebTrader platform & low fees.
Demo Account
Yes
Regulated By
MT4 Integration
Yes
Min. Deposit
$0
Min. Trade
0.01 lots
Crypto
Yes
EagleFX is a popular trading broker offering forex, stocks, cryptos & commodities.
Demo Account
Yes
Regulated By
MT4 Integration
Yes
Min. Deposit
$10
Min. Trade
0.01 lots
Crypto
Yes
Speculate on traditional and emerging financial markets via MT4, MT5 and cTrader. FXPrimus is multi-regulated and offers leverage up to 1:1000 alongside monthly promotions.
Demo Account
Yes
Regulated By
CYSEC, MIFID, ICF, FCA, BaFin, VFSC
MT4 Integration
Yes
Min. Deposit
$15
Min. Trade
0.01 lots
Crypto
Yes
FXChoice is an offshore retail broker offering MT4 and MT5 platform downloads plus online CFD trading.
Demo Account
Yes
Regulated By
FSC
MT4 Integration
Yes
Min. Deposit
$100
Min. Trade
0.01 lots
Crypto
Yes
EZ Invest is a CySEC-licensed broker offering trading on the financial markets.
Demo Account
Yes
Regulated By
CySEC
MT4 Integration
Yes
Min. Deposit
$500
Min. Trade
0.01 lots
Crypto
Yes
FXCC is a trustworthy trading broker regulated by the CySEC. The brokerage offers ECN trade executions, leverage up to 1:500 and $0 commissions.
Demo Account
Yes
Regulated By
CySEC
MT4 Integration
Yes
Min. Deposit
$0
Min. Trade
0.01 lots
Crypto
Yes
Fortrade is a multi-asset broker offering a simple live account with advanced tools.
Demo Account
Yes
Regulated By
FCA, ASIC, CySEC, NBRB, IIROC
MT4 Integration
Yes
Min. Deposit
$100
Min. Trade
0.01 lots
Crypto
Yes
FP Markets is a multi-asset broker offering a choice of trading platforms.
Demo Account
Yes
Regulated By
ASIC, CySEC, ESMA
MT4 Integration
Yes
Min. Deposit
$100
Min. Trade
0.01 lots
Crypto
Yes
AGEA is a regulated forex & CFD broker offering multiple trading platforms and account types.
Demo Account
Yes
Regulated By
Commission for Capital Markets
MT4 Integration
Yes
Min. Deposit
$1
Min. Trade
0.01 lots
Crypto
Yes
Admiral Markets is leading Forex and CFD broker offering the MT4 & MT5 platforms
Demo Account
Yes
Regulated By
FCA, CySEC, ASIC, JSC
MT4 Integration
Yes
Min. Deposit
$100
Min. Trade
0.01 lots
Crypto
Yes
Spectre.ai is a blockchain-based binary options broker
Demo Account
Yes
Regulated By
St. Vincent and the Grenadines
MT4 Integration
No
Min. Deposit
$0
Min. Trade
$1
Crypto
Yes
Trade on the financial markets with low cost, leveraged products at HYCM.
Demo Account
Yes
Regulated By
FCA, DFSA, CIMA, CySEC
MT4 Integration
Yes
Min. Deposit
$100
Min. Trade
0.01 lots
Crypto
Yes
FXOpen is a highly regulated FX & CFD broker offering multiple trading platforms.
Demo Account
Yes
Regulated By
FCA, ASIC
MT4 Integration
Yes
Min. Deposit
$300
Min. Trade
0.01 lots
Crypto
Yes
Hantec Markets is a multi-regulated online FX broker offering MT4 and a tailored service providing flexibility to suit any trader.
Demo Account
Yes
Regulated By
FCA, ASIC, FSC, FMA, FSA, CGSE, VSFC, JSC
MT4 Integration
Yes
Min. Deposit
$10
Min. Trade
0.01 lots
Crypto
Yes
Dukascopy is a Swiss-based forex, CFD, and binary options broker
Demo Account
Yes
Regulated By
FINMA, FCMC, JFSA
MT4 Integration
Yes
Min. Deposit
$100
Min. Trade
0.01 lots
Crypto
Yes
NinjaTrader offer investors futures and forex trading. Use auto-trade algorithmic strategies and configure your own platform while trading with the lowest costs.
Demo Account
Yes
Regulated By
NFA, CFTC
MT4 Integration
No
Min. Deposit
$50
Min. Trade
Varies by asset
Crypto
Yes
GO Markets is an ASIC-regulated FX & CFD broker.
Demo Account
Yes
Regulated By
ASIC, CySEC, FSC of Mauritius
MT4 Integration
Yes
Min. Deposit
$200
Min. Trade
0.01 lots
Crypto
Yes
ThinkMarkets is a multi-regulated forex and CFD broker
Demo Account
Yes
Regulated By
FCA, ASIC, FSCA, CySEC, JFSA, FSA Seychelles
MT4 Integration
Yes
Min. Deposit
$0
Min. Trade
0.01 lots
Crypto
Yes
LegacyFX is a multi-asset broker offering an MT5 download & free signals.
Demo Account
Yes
Regulated By
CySEC, FCA, VFSC, NBRB
MT4 Integration
No
Min. Deposit
$500
Min. Trade
0.01 lots
Crypto
Yes
easyMarkets.com - Simply Honest. Trade CFDs on Forex, Commodities, Indices, Shares & Cryptos With a Top Rated Forex Broker
Demo Account
Yes
Regulated By
CySec, ASIC, BVI
MT4 Integration
Yes
Min. Deposit
€100
Min. Trade
Varies by asset
Crypto
Yes
Deposit and trade with a Bitcoin funded account. BinaryCent offers binary options, FX and CFD trading. 1:100 leverage is also available.
Demo Account
Yes
Regulated By
VFSC
MT4 Integration
No
Min. Deposit
$250
Min. Trade
$.10
Crypto
Yes
Spreadex offer spread betting on financials with low fees. The company is a popular and award winning UK regulated broker.
Demo Account
No
Regulated By
FCA
MT4 Integration
No
Min. Deposit
£0
Min. Trade
£0.01
Crypto
Yes
Pepperstone offers spread betting and CFD trading to both retail and professional traders. Clients can trade FX, indices, commodities and shares on MT4, MT5 and cTrader platforms.
Demo Account
Yes
Regulated By
FCA, ASIC, DFSA, CMA, BaFin
MT4 Integration
Yes
Min. Deposit
$500 recommended
Min. Trade
0.01 Lots
Crypto
Yes
Axi is a global online FX and CFD trading company, trusted by 60,000+ ambitious customers in 100+ countries around the world.
Demo Account
Yes
Regulated By
FCA, ASIC, DFSA, FMA
MT4 Integration
Yes
Min. Deposit
0 $/€/£
Min. Trade
0.01 Lots
Crypto
Yes
Coinbase is the easiest place to buy, sell, and manage your cryptocurrency portfolio.
Demo Account
No
Regulated By
CBoI
MT4 Integration
No
Min. Deposit
0 $/€/£
Min. Trade
0.0001 XBT
Crypto
Yes
Fusion Markets are delivering low cost forex and CFD trading via low spreads and trading costs. Their message is - Stop paying too much to trade
Demo Account
Yes
Regulated By
ASIC
MT4 Integration
Yes
Min. Deposit
$0
Min. Trade
0.01 Lots
Crypto
Yes
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Demo Account
Yes
Regulated By
FCA, CySEC
MT4 Integration
No
Min. Deposit
$200 ($50 in US, $10 in UK)
Min. Trade
$1
Crypto
Yes
An investor with a Plus500 account can trade CFDs on underlying financial instruments such as Forex, Stocks, Commodities, Cryptocurrency (Availability subject to regulation), Options and Indices. With tight spreads and no commission, they are a leading global brand.
Demo Account
Yes
Regulated By
FCA, MAS, CySec, ASIC, FSA
MT4 Integration
No
Min. Deposit
$100
Min. Trade
Varies by asset
Crypto
Yes
Alpari offer forex, CFD and binary options trading across a big range of markets with low spreads and a range of account types that deliver for every level of trader from beginner to professional.
Demo Account
Yes
Regulated By
FSC of Maritius, SEBI, JFSA
MT4 Integration
Yes
Min. Deposit
From $/£/€ 5
Min. Trade
0.01 Lots
Crypto
Yes
Trading 212 Offer a truly mobile trading experience. With tight spreads and a huge range of markets, they offer a dynamic and detailed trading environment. Recent customer care issues have severely damaged the reputation of the brand.
Demo Account
Yes
Regulated By
FCA
MT4 Integration
No
Min. Deposit
€/£/$1
Min. Trade
0.01 Lots
Crypto
Yes
Multi-Award winning broker. Specialising in Forex but also offering stocks and tight spreads on CFDs and Spread betting across a huge range of markets.
Demo Account
Yes
Regulated By
CySec, DFSA, FCA, SCB, FSCA
MT4 Integration
Yes
Min. Deposit
$100
Min. Trade
0.01 Lots
Crypto
Yes

What Is A Blockchain?

In the last few years, blockchain-based trading has been the talk of the financial markets. However, the concept of how a blockchain works can be complicated, so we’ve broken down the key components below.

Blocks

Blockchain in its simplest form is a database; a collection of data stored electronically on a system. Most databases store data in a tabular format so that users can search and report on relevant information. On a blockchain, data is stored in groups, known as blocks.

Chains

Each block holds a certain amount of data and once full is connected to the previous block. This process is continuous and eventually creates a chain. Once each block is connected to the chain it is timestamped and cannot be modified. This creates a secure record of every transaction that has ever occurred.

Blockchain Trading

Decentralisation

A defining characteristic of blockchains is that they are decentralised. The data in traditional databases is held and stored on powerful servers which are usually owned by one entity. For example, stock trading is always completed via a central exchange. Blockchain data requires the same amount of server power but instead, sources this from a multitude of computers with different owners, known as nodes. For changes to be executed on the blockchain (either creating new blocks or changing existing blocks) this must be agreed upon by a majority of the nodes in the blockchain. The nodes work together to manage the blockchain and there is no single owner of the data.

It is by nature decentralised, which means no single entity can control the ledger or influence trades. It is this node approval process that has driven the popularity of blockchains and the emergence of DeFi platforms.

Decentralised Finance (DeFi)

DeFi utilises blockchain technology to provide financial services without the control of a central bank. For example, by enabling users to profit from lending their capital through smart contracts in the same way a bank would. Once integrated into the blockchains, smart contracts cannot be amended by an individual user, ensuring that the transaction remains secure.

DeFi projects are less likely to be impacted by fraud or hackers because it is more difficult to steal money and information across multiple sources versus a central location like a bank. The emergence of DeFi projects has resulted in increased trading of blockchain-based assets, such as cryptocurrencies and NFTs.

History Of Blockchain

Although blockchain technology has risen to fame in the last decade, the concept has been around for much longer. The timeline below shows how it has evolved.

  • 1991 – Haber and Stornetta’s “How to time-stamp a digital document” refers to a chain of blocks for the first time
  • 1998 – Nick Szabo develops the first decentralised digital currency named “Bit Gold”
  • 2008 – 10 years later, the enigma, Satoshi Nakamoto, releases the first blockchain white paper which details how the software should be modelled
  • 2009 – Nakamoto creates the first blockchain public ledger where transactions can be made with Bitcoin. Although not the first digital currency developed, it solved the failings of its predecessors. The Bitcoin blockchain that was released in 2009 is still in operation today
  • 2010 – The first Bitcoin transaction occurred – the purchase of two pizzas for 10,000 BTC, regarded as the most expensive pizza in the world with a current market value of over £300m
  • 2013 – Bitcoin’s market cap exceeds $1 billion with the coin trading at $100/BTC. In the same year, new cryptocurrencies, such as Ethereum, release their white papers
  • 2014 – Ethereum raises over $18m of Bitcoin. Blockchain 2.0 is released, separating the blockchain and the coin. BTC begins to be accepted by merchants as a form of payment
  • 2015 – Over 100,000 merchants accept Bitcoin as a payment method
  • 2017 – The number of Bitcoins in circulation reaches 16.5m. The coin exceeds $1,000/BTC for the first time in three years. Japan recognises Bitcoin as an official currency
  • 2018 – Dogecoin market cap exceeds $1 billion

Blockchain Trading Options

Cryptocurrencies

Cryptocurrencies and blockchain trading go hand-in-hand. Since Bitcoin’s emergence in 2009, the crypto space has grown into a multi-billion pound industry with hundreds of tokens available for trading.

In 2022, most brokers and exchanges offer cryptocurrency trading alongside other traditional asset classes, such as forex, stocks, and commodities (e.g gold or oil), meaning clients can benefit from a diverse portfolio. Popular platforms, such as MetaTrader 5, now offer the ability to trade cryptos on both desktop and mobile app.

Fees vary by broker, so investors should shop around for the best deals. Some brokers now also accept Bitcoin as a form of payment, however, this is usually limited to crypto exchanges.

NFTs

Another type of digital token born out of the development of blockchain technology is the non-fungible token or NFT. Exchanging NFTs on a blockchain is similar to trading cryptocurrencies, but has some distinct differences. Cryptos are fungible, meaning they are completely indistinguishable from one another. If I lend you 10 BTC, when you pay me back I’m not concerned whether I receive the same 10 BTC or different ones. In fact, I wouldn’t be able to tell if they were different.

NFTs on the other hand, are non-fungible, meaning they are completely unique. The first-ever signed copy of the Wolf of Wall Street would not have the same value as the millions of blank copies or duplicated fakes. It would be a one-of-a-kind, just like NFTs.

These digital tokens come in all shapes and sizes and can be anything from music to gaming software. Like cryptos, all NFTs benefit from the secure and transparent nature of blockchains.

Emissions Trading

In addition to trading assets, blockchain technology can be used to solve issues related to emission targets. Large businesses that emit high levels of carbon emissions must purchase government-issued pollution permits to avoid fines. This is particularly applicable in the oil and gas sector where trading is under constant public and government scrutiny. Any company wishing to increase their pollution levels must have the correct permits. These are purposefully kept in short supply and so some firms elect to manage their emissions with permit derivatives which are available on most trading platforms.

Blockchain technology facilitates the buying and selling of these permits by better connecting the supplier and those in demand. It increases transaction transparency while reducing fees and the risk of fraud. There is also no requirement to negotiate the issuance of permits with a central governing body, so it becomes totally decentralised.

P2P Energy Trading

Blockchain technology can also be used to solve household energy wastage issues. Blockchain-oriented energy markets or peer-to-peer (P2P) trading enables customers to sell excess electricity to other customers. Typically, only trading of solar energy is possible and users must be on the same grid, but usage is expanding rapidly. The first example of this was in 2018 when a neighbour of a renewable energy source creator bought excess power using Ethereum (ETH).

This type of blockchain trading can increase resource efficiency across the world, particularly in countries with high energy consumption, such as China, the USA, and India. Rather than consumers paying large energy companies a fixed amount of their income each month, control is given back to the consumer, with the option to start trading their excess energy.

Bitcoin Blockchain

Bitcoin Blockchain

Exchange Structures

Blockchain technology is increasingly becoming integrated with other trading markets in an attempt to increase the efficiency and transparency of the exchange. Some commodity exchanges still validate their transactions by manually recording purchases and sales – an outdated and risky approach. By integrating a blockchain commodity trading platform, transactions would be validated instantly, providing a higher degree of security and transparency.

There are already examples of businesses developing a blockchain oil and gas trading system, with Vakt and OneOffice leading the way in the design of such software. As the revolution against traditional trading exchanges grows, there is an expectation that exchanges for other asset classes, such as bonds, equity and securities, will be upgraded using blockchain technology.

Getting Started

The number of blockchain trading users is growing daily. This has resulted in a catalogue of advice and support for people looking to get into the blockchain trading game. It is always advisable to do your research before putting your capital at risk.

Key resources include the Blockchain Trading Alliance and Blockchain Academy, where users will find in-depth reviews, technical analysis, and trading forums. Here, a range of topics will be covered, including how to implement a trading bot, how to adjust your trading view, and which is the best blockchain trading platform. All of which will aid the implementation of a successful trading strategy. Traders should also make use of any demo accounts before risking their capital.

Pros Of Blockchain Trading

Now we’ve explored the trading options, how does blockchain improve trading? The benefits are explained below:

  • Highly secure – Any transaction or amendment in a blockchain must be validated by nodes in the chain. This can help reduce the risk of insider trading, as unauthorised amendments would be noticeable.
  • Increased accuracy – Due to the advanced technology behind blockchain trading and the multi-node approval process, there is a reduced risk of human error. There is still a slight risk of computer error but this would need to be verified by all nodes, making it highly unlikely.
  • Growing support – It was 10 years ago when the first Bitcoin transaction was executed. Today there are hundreds of tradable coins and many other ways to get involved with blockchain trading. This rise is expected to continue as users prioritise the decentralised and secure nature of blockchain trading over traditional methods.
  • Improved transparency – The development of each blockchain trading platform is accessible through open-source software. This means information such as how the blockchain operates, how it was built and its history, is available for all members of the public to review, including other developers and auditors.
  • Increased accessibility – Traditional trading exchanges do not operate on the weekends and have specific trading hours during the week. Blockchain trading is available 24/7 every day of the year, meaning traders can access the market at any time. The decentralised nature of blockchain trading also removes the involvement of an overseeing third party, which makes trading more efficient.

Cons Of Blockchain Trading

Despite the strong features of blockchain trading, there are some drawbacks:

  • Complicated – Blockchain trading is much more difficult to understand compared to other asset classes or methods. Traders may resist entering the blockchain world due to its complexity.
  • In development – Blockchain trading is still a relatively new concept. With the exception of cryptocurrency and NFT trading, most aren’t widely available. However, there is a strong probability that blockchain technology will be further integrated into society in the future.
  • UK regulation – In 2020, the FCA tightened regulations on crypto trading. In particular, crypto derivatives and leveraged trading is no longer available. This may have slowed the expansion of blockchain trading to traditional asset brokers.
  • Energy-intensive – Blockchain technology requires vast amounts of energy to validate transactions, making it potentially damaging to the environment.

Blockchain Trading Summary

The potential for blockchain trading is massive. This has been demonstrated in the digital currency sector with the expansion of Bitcoin to a multi-billion-dollar industry in just over a decade. The key features of blockchain technology make it an attractive concept for a variety of industries, and many, such as energy and financial services, are already beginning to utilise it.

Despite this, increased regulation on blockchain technologies by governments and other bodies poses a threat to its development. This regulatory control also devalues the decentralised nature of blockchains which may further hinder the level of user interaction. Regardless of these potential barriers to entry, the future for blockchain remains bright.

FAQs

What Is A Blockchain?

A blockchain is an electronic database that securely stores data via encryption. Groups of data, known as blocks, are connected to each other in chains once their data capacity is reached. Once the block is full, it is timestamped and connected to the previous block. Changes cannot be made to blocks once they are chained, making the technology secure.

Is Blockchain Trading Safe?

Blockchain trading is secure in that each transaction is recorded on a ledger which cannot be altered. Since it is decentralised, no single organisation controls transactions. Any changes in the blockchain have to be agreed by the computers validating the network, called nodes, which further reduces the risk of errors. Despite this, traders should take steps to protect their cryptos from hackers by enabling 2FA and not reusing passwords across accounts.

When Was Blockchain Invented?

The term “Blockchain” was first referenced in 1991 by Haber and Stornetta when discussing the process of validating a digital document. The first cryptocurrency, named “Bit Gold” was developed some years later by Nick Szabo in 1998. However, it wasn’t until a decade later that Satoshi Nakamoto released the first blockchain white paper and Bitcoin was born.

How Do I Start Blockchain Trading?

There are several different blockchain trading options. The most common form of blockchain trading involves purchasing cryptocurrencies, which are available to trade with many brokers and exchanges. Despite this, UK traders may struggle to invest in crypto derivatives if their selected broker is FCA regulated.

What Blockchain Companies Can be Traded?

In recent times there have been some companies that specialise in blockchain technology solutions. Like traditional publicly traded companies, their shares can be traded directly on the stock exchange. A good example is the blockchain trading company Riot Blockchain, which can be traded publicly on NASDAQ.

Further Reading