Should You Trade Crypto? Explore the Possibilities & Trade Securely with TMGM

In the last decade, cryptocurrency has gained immense exposure and traction as a next generation asset class. Playing a pivotal role in the rapidly evolving fintech scene, while offering the allure of strong potential returns, it’s no surprise that many investors and retail traders have shifted some of their portfolio to the world of crypto.

As cryptocurrency remains a relatively new asset class, it’s important to equip yourself with in-depth knowledge about the evolving crypto space before trading crypto assets yourself.

This article discusses the key considerations of crypto, later differentiating it from the option to trade crypto CFD instruments without having to physically own and store cryptocurrency yourself.

At TMGM, we provide a secure platform that’s fully regulated by the ASIC, VFSC, and the FSC of Mauritius for seamless CFD crypto trading, with no crypto wallet necessary.

What is Crypto? - Crypto Made Simple

Cryptocurrency, also known as Crypto, is a digital form of currency. Housed on decentralised networks known as blockchains secured by cryptography, this makes it near impossible to double-spend or counterfeit the same cryptocurrency.

The blockchain records every single transaction for its cryptocurrency, ensuring total transparency and immutability. Each blockchain network has “nodes” to ensure the validity of every transaction. Nodes function like next-generation bank clerks. They make sure senders have sufficient cryptocurrency to send. Once a node approves a transaction, it is grouped into a new “block” on the relevant blockchain. For a block and all of its transactions to be completed, nodes – also known as miners – must solve a complex math puzzle using computational power. Their reward is a fraction of the same cryptocurrency which they approve on their blockchain.

Traditional fiat currencies issued by governments and central banks are known as centralised forms of currency. It’s the centralised nature of fiat currencies which some people now rail against, since decentralised currencies obtain their value from those who use them and don’t lean on central banks or third parties to function.

Popular Cryptocurrencies

Although there’s quite literally thousands of cryptocurrencies in the marketplace today, each designed to serve its own purpose or boast its own unique features, let’s run through the most popular cryptocurrencies:

Bitcoin (BTC)

Created in 2009, Bitcoin is the original cryptocurrency, often referred to as “digital gold”. It was created by a mysterious online user named Satoshi Nakamoto, who aimed to devise a peer-to-peer system for digital transactions that wouldn't need third party intervention and could be inflation-proof.

With a maximum quantity of 21 million BTC to be mined, this would control supply and demand. Despite the success of Bitcoin there have been two “hard forks” of the Bitcoin blockchain – Bitcoin Cash and Bitcoin Gold. A hard fork utilises the same underlying blockchain with slightly different rules and metrics based on the preferences of the founding users.

Ethereum (ETH)

Ethereum has long been considered Bitcoin’s number-one rival. The concept of Ethereum was conceived by a teenage computer scientist called Vitalik Buterin. After publishing his whitepaper on the new protocol at a Bitcoin seminar in the US, the Ethereum network took flight.

Its platform focuses on equipping programmers and developers with the ability to deploy decentralised web applications (dApps) and smart contracts, without having to build a new blockchain for every new dApp. Ether is the native cryptocurrency of the Ethereum network, used to cover network services and transaction fees.

Litecoin (LTC)

Litecoin was conceived in 2011 as a response to Bitcoin. The thinking was that Bitcoin’s slower blockchain confirmation times for transactions will hinder its long-term scalability. Litecoin has quicker confirmation times and the ability to store more transactions within a single block on the blockchain.

Aside from its faster transaction processing times, there’s also more Litecoins available than Bitcoins. The total cap of Litecoins in circulation is four times that of Bitcoin, sitting at 84 million LTC. Litecoin’s vision is to create a cryptocurrency capable of handling fast and cheap daily transactions for consumers.

Ripple (XRP)

The concept of Ripple (XRP) is to act as a digital payment protocol. XRP is now being used as a bridge currency to offer fast, ultra-low-cost cross-border transactions. Think of how the SWIFT system oversees conventional cross-border payments and security transfers between banks.

Ripple has cemented itself as the crypto payment settlement asset exchange and remittance system for retail and institutional users.

Dogecoin (DGE)

Dogecoin was the first “meme coin” of the cryptocurrency industry. It was designed as a “joke” cryptocurrency, with its founders poking fun at the speculative nature of the cryptocurrency scene at the time. Little did they know it would attract the support of Elon Musk – and others – to become a genuine crypto asset.

Dogecoin is an open-source cryptocurrency, inspired by the success of Litecoin. It uses the same proof-of-work technology as LTC to ensure faster payment processing speeds than Bitcoin. Dogecoin is one of the few cryptocurrencies which could be considered inflationary, since there’s no cap on the number of DGE which can enter circulation.

Potential Applications of Cryptocurrency

There’s no doubt that cryptocurrency and blockchain technology have the potential to revolutionise a host of industries, redefining how we spend and save our personal wealth:

The Draw of Crypto Investing: Potential Benefits

According to recent research, global ownership rates for cryptocurrency in 2024 stand at 6.8%, which means there’s more than 560 million people who buy and sell cryptocurrencies worldwide.

Bitcoin remains the most valuable cryptocurrency by a considerable margin. Its market capitalisation comprises around half of cryptocurrency’s entire market cap. There are multiple reasons why hundreds of millions of people invest in cryptocurrency today, including:

Understading the Prospects of Crypto Investing

We’ve touched upon the potential benefits of being involved in the burgeoning cryptocurrency industry. For a balanced guide to crypto investing, it’s just as crucial to consider the challenges and risks involved.

The number-one issue surrounding cryptocurrencies today is price volatility. As a relatively immature marketplace, the market value of cryptocurrencies can fluctuate wildly daily. It’s not uncommon to experience swings of 10%-15% in a 24-hour trading window. These are swings which are few and far between in the stock market and only triggered by exceptional or dire news on a company or its industry.

Another ongoing issue for cryptocurrency investors is its regulatory environment, or the lack of it, to be frank. Only a limited number of countries have embraced cryptocurrencies to the point of regulating it as a credible form of real-world currency. When you invest in certain cryptocurrencies, keep your eyes and ears open, as news of new regulatory frameworks or outright bans have the potential to make or break a crypto asset.

Although cryptocurrency is very much a digital currency, the onus is still on buyers and sellers to store and look after their crypto assets. Security issues have long since plagued the crypto industry, so it’s becoming increasingly important for crypto owners to take matters into their own hands with hardware wallets, complete with private keys, as well as enabling two-factor authentication (2FA) for account log ins wherever possible.

Is Crypto Right for You?

Before you dive headfirst into the cryptocurrency markets, it’s important to carry out your own self-assessment of your risk tolerance and investment goals.

Remember, cryptocurrencies are comfortably the most volatile asset you could buy and sell right now. If you’re a risk-averse investor or trader, you'll find it challenging to manage the volatility of this new asset class.


Are you an investor seeking safe short-term gains or are you prepared to take hold for longer in the hope of even bigger returns? In truth, cryptocurrency can appeal to short and long-term investors, but it’s vital you define clear objectives from your crypto investments from day one.

Even if you’re excited about the prospect of buying into cryptocurrencies for the first time, this isn’t something you should commit huge sums to in the first instance. Most investors will only risk 5%-10% of their overall portfolio on high-risk asset classes, so this should give you an idea of how much you should allocate to your crypto endeavours.

Investing In vs. Trading Cryptocurrency

If you’d rather not buy and store cryptocurrency and focus on profiting from the regular price volatility in the crypto markets, you can always trade crypto CFDs instead. These mimic the market performance of the underlying assets, with the ability to go “long” or “short” just like other traditional CFDs. It’s important to distinguish the difference between crypto trading (buying and exchanging crypto to store in a crypto wallet) and crypto CFD trading (trading the market value of crypto assets without having to store them).

How to Trade Crypto Securely with TMGM

At TMGM, we offer Contracts For Difference (CFDs) which are pegged to the price of each underlying crypto asset. You can buy (long) and sell (short) a crypto CFD. If you buy one and its price increases, you can close your trade for a profit. If you sell a crypto CFD and the price falls, you can also close the trade in a profitable position.

We offer crypto CFDs for the 12 most popular cryptocurrencies, with more potentially to follow. The crypto CFD markets are also fully compatible with MetaTrader 4 (MT4) software.

The flexibility to profit from crypto price moves up and down makes crypto CFDs such an intriguing instrument to day trade or hold for a longer period in the market. The crypto CFD markets at TMGM are available to buy and sell 24/7, so you’re not constrained by time when you trade cryptocurrencies with us.

We’re also proud to offer industry competitive spreads, which is the difference between our crypto CFD “buy” and “sell” prices and the real “buy” and “sell” prices of the underlying asset. The narrower the spread, the better, since you’ll only need a minor market move to make your trade a profitable position. Our crypto pricing engine also ensures you’re never requoted a price, allowing you to execute crypto trades with the utmost speed and accuracy. Better still, you can start trading CFD crypto instruments using something called leverage. Leverage allows you to secure larger positions with a minor capital outlay, amplifying potential profits and losses based on funds borrowed from your broker.

For instance, you can get up to 1:200 leverage on the most popular cryptocurrencies like Bitcoin and Ethereum. This means for every $1 you “buy” or “sell”, the value of your position is magnified up to 200x. This gives you a chance to trade crypto’s volatility with a relatively modest trading bank.

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