CFD can be described as an interbank exchange market that was created in 1971 as the global economy began to shift between fixed rates of exchange and floating rates. It’s a grouping of transactions by CFD market agents that involves the trade of funds between two countries using currency units executed at a fixed exchange price. The exchange rate utilized for these transactions depends on demand and supply patterns.

The term “crypto-currency” refers to a method of exchange created and stored electronically as part of a blockchain, employing encryption methods to control the generation of money units and confirm transactions.

In simple terms, it is an online database with limited entries that can’t be changed without meeting specific specifications. The database holds information on balances, accounts, and transactions. Moving currency between accounts in exchange is only possible when the appropriate conditions are met. A confirmation entry is then entered into the database.