IG Group expands its cryptocurrency trading

Users can now invest in Bitcoin and Ether without having to buy and store it themselves.

Online trader IG Group is launching trading on Ether, the token of the Ethereum cryptocurrency network, as it expands its alternative currency options. This means users can invest in the virtual currency without having to buy and manage it.

The platform already offers trading of Bitcoin, the best-known cryptocurrency. Ethereum is a digital platform that can build a variety of different applications, including currency and has a market capitalisation of $28bn (£21.7bn), making it the second largest virtual currency.

It’s just one of a variety of virtual currencies that have gained popularity in recent years. The currencies operate independently of banks and governments. It’s a hot area of investment, with rival online traders like eToro also expanding into virtual currency.

“As the acceptance and popularity of cryptocurrencies has grown around the world, IG has been at the forefront of giving people the opportunity to trade them,” said Rupert Osborne, deputy head of FX and futures at IG. “We launched Bitcoin trading for our clients three years ago and are happy to make Ethereum the second cryptocurrency to trade on the platform.”

The value of these cryptocurrencies has recently soared. Just two years ago Bitcoin was being sold at $500, while today it trades at around $4,000. Ethereum trades at around $300.

Normally to get access to these currencies users need access to a virtual wallet. The IG trading platform takes away the risk of holding a wallet and clients can invest via a spread bet or CFD. Users will never own the currency, they merely trade the movement in its price.

IG says there are a number of benefits to trading Ethereum instead of owning it, including the ability for short term investments, not needing a wallet, and having the security of IG’s encrypted platform.

The retail trading and investment firm was established in 1974 and offers a variety of multi-platform trading services, including a robo-advice platform. 

This article first appeared on www.roboadvicenews.com