Polygon, Polkadot and Terra led the way as cryptocurrency prices stormed back Tuesday after taking hard hits in recent days.
The three rally leaders were all up more than 10%, according to Market Cap. Polygon rose more than 12% at one point, while Polkadot and Terra gains exceeded 11% and 10%, respectively.
Bitcoin rises more than 3%
On Tuesday, Bitcoin rose more than 3% while approaching $52,000 (£39,269), before receding slightly. The world’s most valuable digital currency generated a volume of $34.9bn as 685,482 units traded.
Ethereum and Binance, the second and third most valuable crypto assets dollar-wise, saw modest increases as their gains straddled the 1% line.
Tether and Solana, the fourth and five-largest digital coins in terms of market capitalisation, declined marginally – as did USD coin, a stablecoin pegged to the US dollar.
Shiba Inu up about 2%
Closely watched memecoin Shiba Inu, which is named after the same dog breed as Tesla CEO Elon Musk’s puppy, rose more than 2% on volume of $2bn.
Bitcoin, Ethereum, Binance and Tether combined for $140.56bn in trading volume.
Meanwhile, Spell generated plenty of buzz on Twitter as the meme token began trading on the Coinbase platform. Spell rose more than 41% while posting a 24-hour trading volume of $262.8m.
The chatter circulated among self-described analysts who use aliases, instead of their actual names, for Twitter handles. One observer’s post showed a rocket blasting off.
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.