Getting latest data loading
Home / Special Reports / The Bitcoin Report

Leveraged products involve a high level of risk and you can lose more than your original investment. They are not suitable for everyone so please ensure you understand the risks involved and if necessary please obtain investment advice from a financial adviser before investing. This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.

17 September 2017

The Bitcoin Report

Unless you’ve been living under a rock, you’ll have likely heard about 2017’s most divisive topic. Cryptocurrencies. Talks of returns in the double or even triple digits have set traders’ tongues wagging, resulting in a significant increase of products available. Even Paris Hilton has jumped in on the act, recently endorsing a US coin offering.

With financial websites awash with news about cryptocurrencies, this report will focus on the currency that started it all, Bitcoin. We’ll answer questions such as what it is, what it can be used for, how you can trade it and whether it is a feasible investment. By the end of the report, you’ll be able to decide whether it’s boom or bust.


What is Bitcoin and what is it used for?

Bitcoin is the best-known example of a cryptocurrency, a virtual and de-centralised currency whose transactions are performed without the need for a central issuing authority – a bank, in most cases. In 2009, a programmer under the pseudonym Satoshi Nakamoto published the specification and proof of what became Bitcoin. Since then, it has become the world’s most popular cryptocurrency, inspiring others such as Ethereum and Ripple.

To obtain one, you would need to ‘mine’ a Bitcoin by authenticating a series of bitcoin transactions that are then recorded onto a central ‘blockchain’. Once you have completed these, and they have been confirmed by a peer-evaluated system, you are then rewarded with a number of Bitcoins. While this was once a relatively simple process, the number of authentications that need to be completed for a single block has increased exponentially.

While physical Bitcoins have limited use today – mainly for online transactions – traders can speculate its value in a similar way to regular currencies, a popular trade that has seen Bitcoin rally as much as 300% this year.


Why has Bitcoin increased in value so much this year and will it continue?

The 2017 cryptocurrency rally has come about after a surge in fundraisings called Initial Coin Offerings, or ICOs. While an IPO raises money through public listing, most commonly an ICO raises money for developers by offering tokens in return for a future stake in the currency being developed. So far ICOs have raised $1.8bn in 2017.

However, investors are seemingly falling out of love with Bitcoin, if only a little. China has ruled ICOs illegal, while JP Morgan’s CEO has very publicly claimed that Bitcoin is a fraud, resulting in the crypto poster child falling up to 30% from its highs. With ICO investigations in the both UK and US ongoing, investors are spooked. However, as blockchain technology becomes increasingly popular in mainstream finance, with the world’s largest financial institutions dedicating vast resources to research it, Bitcoin could play a key role in this new world.


Over the page, we analyse the investment opportunities in Bitcoin, including just how you can trade it.

Page: 01

Bitcoin (BTC)

Will Bitcoin rally back to highs of $5000 (+49%) or fall to July 2017 lows of $1800 (-46%)?
  • In 2017, the price of a single coin has rallied from around $1000 in January to highs of almost $5000.
  • However, the cryptocurrency has fallen by over a third from August’s all-time highs of $4924.
  • Relative Strength Index (RSI) has bounced from near its oversold level
  • Stochastics have turned oversold for the first time since July’s lows
Market commentators are divided on Bitcoin’s future direction:
  • Allianz chief economic advisor Mohamed El-Erian believes it should be worth half of its current value
  • CNBC contributor Brian Kelly, however, believes it is undervalued in the long run


Pricing data sourced from ProRealTime Charts on 15 September. Please contact us for a full, up to date rundown.

Page: 02

How can I invest in Bitcoin and other cryptocurrencies?

While online coin brokers and exchanges claim to offer access to physical Bitcoins, most are unregulated and, therefore, pose considerable risks to investors. However, there are some regulated ways to invest in Bitcoin.

Bitcoin is available to trade through Contracts for Difference or CFDs. While you would not have the physical ownership of one or more Bitcoins, you would be able to speculate on the value of the cryptocurrency in the same way that you would trade an index. Furthermore, this allows you to take either a long or short position on the cryptocurrency, allowing you to the ability to profit from falling prices as well as rising ones.

A position is opened in the form of a contract. A contract means that you stand to profit from movement based in points – for Bitcoin (USD) this entails a single dollar. Contracts are priced at different levels, with a point having different value depending on the size of a contract that you undertake. A maxi contract has a value of $100 per point on a 12.5% margin, while a mini contract is priced at $10 a point but requires a larger capital outlay, a 20% margin. The commission on a maxi contract is £10 in, £10 out, while a mini contract carries a £1 cost each way.

A long position would see profit when Bitcoin increases in value – relative to your per point exposure – while a short position profits when Bitcoin falls. Proportionate losses would be made should it move unfavourably.

Other cryptocurrencies available to trade are limited to Ethereum, however products such as exchange traded funds (ETFs) may offer the exposure to Bitcoin and cryptocurrencies without needing to trade the product itself.

However, trading Bitcoin comes with immense risks. Given the value of Bitcoin is incredibly difficult to quantify effectively, daily movements of 5-20% in either direction on little or no news regularly take place. This makes long-term positions more difficult to support, which has forced Bitcoin traders to pursue short-term strategies.


Bitcoin and cryptocurrencies are not for me. What are my other options?

If you’re searching for trading opportunities that have a much lesser tendency to post sharp price movements, then you may be interested in trading indices.

Indices, selected lists of the largest and most traded companies on a particular stock exchange, are traded on a contract basis, however they have a much broader range of influence and drivers than Bitcoin. These include, but are certainly not limited to, corporate news, foreign exchange markets and macroeconomic factors.

As detailed above, indices trade on a per point basis, however one advantage of trading indices as opposed to cryptocurrencies is that the margin required to open a position is much smaller. For example, the UK’s blue chip index – the FTSE 100 – requires a margin of as little as 5%, although this is dependent on trading hours.

Alternative investments that trade on a similar basis include Commodities, including Crude Oil and Gold, and Currencies, such as GBP/EUR, EUR/USD or even a trade-weighted index such as the US Dollar Basket. Like indices, these are subject to a diverse range of influences and, while not subject to the same volatility as a cryptocurrency, can often see daily price movements of up to 5%.

Accendo Markets’ research team puts together daily publications on indices, commodities and blue-chip equities. To discover our award-winning offering, sign up here to have it delivered directly to your inbox.

Page: 03

Want to take advantage of the above opportunities in Bitcoin right now?

Whether you see Bitcoin going up or down for the remainder of the year, tradable opportunities will present themselves regularly. We’re here to help you weed them out and capitalise on them. Accendo Markets can help you increase your profit potential with the use of leveraged instruments such as CFDs, a flexible alternative to traditional shares that is currently exempt from UK stamp duty.

CFDs: Like shares, but more flexible

Stockbroking Ticket

CFD Ticket

The example above shows how buying 1,450 shares in British Land @ £6.90 requires an outlay of around £10,000 plus commission (see left-hand box), while the same exposure via a CFD requires about £500 plus commission (see right-hand box). If a trader invests in British Land, one would assume they believe the share price is likely to move in their favour. After considering the ‘worst case scenario’ and assigning funds to cover it, the trader may conclude there’s little point in exposing the full £10,000 to the BLND shares - some of that capital could be put to good use elsewhere in the markets. (Source: IG, Prices indicative)

CFDs are leveraged instruments, but you don’t have to use the leverage

If you had, say, £10,000 to invest in the stock market, you could deposit that amount into a share dealing account and purchase shares in a company. You would pay commission to open the position, 0.5% in stamp duty and the full £10,000 will be tied up in your chosen shares with any profit or loss based on that exposure. The same £10,000 worth of exposure can be secured with a CFD for a fraction of the initial outlay thanks to leverage, with the risk and reward the same as if £10,000 worth of traditional shares were held. But should you not be interested in leverage, you can always treat CFDs like shares. Simply deposit £10,000 into a CFD trading account and take the equivalent CFD position which will tie up just £500 (note that overnight financing costs will still apply). The remaining £9,500 is not tied up, so you can use some of that to take advantage of another short-term opportunity elsewhere, or simply leave it on the account to support any losses. Best of all, using a CFD means you pay no stamp duty!

What’s your view?

Think shares will rise? Take a long position by buying CFDs (buy low, aiming to sell high). Think they’ll fall? Take a short position by selling CFDs (sell high, aiming to buy low). For a more detailed rundown of CFDs, their mechanics, associated costs and some trading scenarios download our ‘Comprehensive Guide to CFDs’ here.

Page: 04

The Accendo Markets Research Offering

Does your current broker’s morning report tell you all you need to know about yesterday’s news? If so, how is it offering you anything more than the plethora of information already available on the internet?

We’re proud that our morning editorial has become a hot commodity in the City, its content quoted daily by the journalists that are writing the news everyone else will be reading later in the day, if not the next. Our morning report tells you what’s driving the market at that moment and what to look out for in the day ahead.

If a company has reported earnings before the market opens, we’ll tell you why the shares are called to open up or down in relation to that announcement.

As well as the Morning Report, signing-up to Accendo Markets Research & Trade Ideas offers you the chance to receive the following publications:

  • Another Level: A selection of key level alerts on various stocks.
  • Index Focus: A selection of key level alerts on the major indices.
  • Trade Alerts: Trading ideas from our analysts. What do they think is likely to move?
  • Macro Calendar: Live market-moving data, breaking news as it happens
  • Week in Advance: A summary of next week’s key events. Is there a trading opportunity there for you?

To ensure you can act as quickly as possible, you’ll receive an email with a link to the latest publication as soon as it’s released. You can unsubscribe from these emails at any time.

Based on a wealth of experience, gained from both large and small institutions, our Research and Trade Ideas are produced in-house. Our team of dedicated professionals comprises both analysts and traders, drawing upon a wide range of resources and methodologies.

Our aim is to provide you with the manpower and expertise you need to help you clarify, interpret and capitalise on the ever-growing volume of market information.

The journalists don’t pay for it and neither do you, so why not give it a go? You’ve nothing to lose and perhaps a little more to gain… Subscribe Today!

Page: 05


Free online quotes and Competitive exchange rates


Do you need to exchange currency? You could be being overcharged by thousands of pounds by your bank or bureau de change!

It’s now easier than ever to get bank-beating currency exchange rates that could save you thousands. For too long banks have dominated the FX market to the point where they will simply give you an exchange rate that may as well have been plucked from thin air. The current system is due an overhaul.

The foreign exchange market is always moving. On this premise, a new breed of Currency Exchange specialists is able to offer unparalleled services that will help you by constantly monitoring the market on your behalf. It’s now the norm for customers to expect the support of a knowledgeable and approachable account manager - your eyes and ears in the market - who’s always on hand to talk.

Download your free Currency Exchange Guide here to make sure you don’t make the mistake of accepting an inferior exchange rate.


This free guide will tell you:

  • Common mistakes to avoid
  • How to get preferential exchange rates
  • How to get your timing right

Whether you're an individual or a business, this guide could put thousands of pounds in your pocket. Be informed, don't lose out. Download your free guide here.


AccendoFX Ltd - 1 Alie Street, London, E1 8DE (UK) - AccendoFX Ltd. is registered with the Financial Conduct Authority (FCA) No. 671133 and HMRC No. 12798406. Registered in England and Wales No. 9269365.

Page: 06

This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.

Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research

CFDs, spreadbetting and spot FX are leveraged products & can result in losses exceeding your initial deposit. They are not suitable for everyone, so please ensure that you understand the risks.
The value of shares can go down as well as up, so you could get back less than you invest.

Telephone calls and online chat conversations may be monitored and recorded for regulatory and training purposes.

* We provide these as underlying assets to CFDs and Spreadbets.

To view our policies and terms, please click here

This website is not intended for or directed at residents of the United States or any country outside the UK. It is not intended for use by or distribution to any person in any jurisdiction or country where its use or distribution would contravene any regulation or local law.
Prices on this page are delayed.

Like many websites, we use cookies for statistical purposes and to acquire information on general internet use. This helps ensure that you get the full benefit of our services, and enhances your browsing experience . For more details on the cookies we use, view our privacy policy under the heading 'How We Use Cookies'. By using this website, we'll assume that you're happy to receive all cookies from Accendo Markets.
Removing cookies may impede the operation of some parts of this website. For general information about cookies and how to remove them, please click here 

Accendo Markets Ltd - 1 Alie Street, London, E1 8DE (UK) Telephone: 020 3051 7461 - Accendo Markets Ltd. is Authorised and Regulated by the Financial Conduct Authority (FCA) No. 475285. Accendo Markets Ltd. Registered in England and Wales No. 6417051. © Copyright Accendo Markets Ltd 2015. All rights reserved.

4.82 Average

154 Reviews

Shaun D

since signing up for Accendo I have had two traders, Mark and Sam. I have found both of these to be very informative about how CFD's work and they have made it very easy for me. Since working with Sam (last four months) my trading knowledge has improved and I can make more informative decisions about which Company's to invest with. Keep up the good work Sam.

Posted 1 day ago


I am very happy with the service I get from Accendo Markets and in particular Jermaine Bedlow. He is very professional and pleasant to speak to and this counter for a lot. The only problem I do have is with the Accendo trading platform as the platform will not stay open for more than about two minutes on my works computer before it shuts down, but it is fine on my home laptop.

Posted 2 months ago

Shreekant P

Its a good site for dealing stocks worldwide and having good staff.

Posted 2 months ago

Nick W

Krishan Appiah is one of the most dedicated / informative broker I have ever had.

Posted 2 months ago

Thomas I

Since I have been trading with Accendo Markets I have experienced much greater success than has been my experience with other trading companies mainly due to the help given by, what I consider to be my terminal with the trading floor, Mark, who has been most helpful in reminding me of the progress of my positions throughout the day and keeping me in touch with those positions so that I can more easily make successful trades when appropriate instead of missing out on opportunities through lack of attention. He draws my attention to the situations and enables me to make profitable trades. I am very happy with the situation at the moment and am enjoying the experience. Thomas Irving.

Posted 3 months ago

Kartik A

Accendo markets keep me connected with the market and its very well followed by Mr. Krishan Appiah ,which helps me to take certain decision on time.

Posted 3 months ago

Peter p

I have been trading with Accendo Markets and James Abbott my account manager for coming on 5 years now, James Abbott the senior trader of Accendo Markets provides me with up to minute information when I need it and find him very easy and professional to deal with. Whenever I need to trade or am not sure about anything James is always their to help with any queries I may have. The Accendo Platform I find very easy to use and navigate although it has been slightly changed over the years but definitely for the better. Personal when I do trade 90% of the time, I rather telephone call to place my trade dealings and if James is not there to take my call I find others at Accendo like Sam, Lee take my trades and are. All in all everyone at Accendo Markets are amazing to deal with and my relationship with Accendo is just as I like it. Peter Petrou

Posted 8 months ago

Mrs. J

"Our Trader, Aymen Azizi, has been nothing but attentive to our every need throughout our long relationship with him. No issue is too small, full explanations on all our questions."

Posted 9 months ago

Brian R

I have been with Accendo for a long time now, ten or twelve year's, probably more . As I told Sam (my trader) I thought that CFDs were better than sex . I stopped trading for a few years and only started back about a couple of months ago. But it is as if I had never been gone , so to speak. Sam has helped me every step of the way, at my age one forgets things. I have only praise for Accendo and as far as I am concerned the platform is the best . Now I am back trading at 71 years of age, I might even try sex again. Brian Robertson.

Posted 10 months ago

Jim W

I understand how to make a profit with CFDs. I am restricted by the range of companies I have knowledge of. Although, I am not sure that is a big problem. Tom Robertson is a very fine man.

Posted 1 year ago

Rebekah S

Well, I would not be trading without the help of my trader, Sam Alnakkash. He provided a really great overview of Accendo Markets, an insight into trading in general and how to get started in trading online. His advice, support and training has been fantastic all along the way, enabling me to start trading earlier than I would have done had I not had the support. He has also been very adept at understanding me as a client in order to help me achieve my trading goals. I still have a lot to learn and hope I will get there.

Posted 1 year ago

Nick z

I like the updates on shares I trade. Updates from Bloomberg and Reuters plus industry updates and breaking news. I've had Matt Grice and James Abbott and found both to be excellent. I would like to continue a personal service with James. He understands how and which stocks I trade.

Posted 1 year ago

Steve O

Excellent, knowledgable broker interaction and communication, coupled with very good research and analysis.

Posted 1 year ago

William P

Being new to direct trading I needed help and was given all the time and advice that I needed to feel fully able to make decisions on what I wanted to invest in. I asked for and got exactly the type of info I required provided by Tom Cook, who I would recommend to anyone looking for help.

Posted 1 year ago

Mr. W

I have been dealing with accendo for the past 8 years my broker Amrit I find him very helpful when he is there lol and had many offers to change but will not do it Bill Roberts

Posted 1 year ago

Zoran N

Very good all round service! Timely market information. (charts + trends coverage ) On the ball accounts managers ,quickly available and alert . Part of my success owed to my personal manager Mr Sam Springet , than you.

Posted 1 year ago

Mr Brian C

Easy to deal with.....

Posted 1 year ago

Muhammed S

Accendo markets are great for trading cfds and their research is second to none! Aymen manages my account is extremely helpful and always keeps me updated on market info. Thanks again

Posted 1 year ago

Mr Buta B

Always available, whenever I call I get straight through to someone that can and will help. The staff are very knowledgeable, helpful and easy to talk to.

Posted 1 year ago

Stephen B

Aymen Azizi keeps an eye on what is happening in the market and informs me with timely relevancy, email call, and txt.

Posted 1 year ago

Mr. G

the web site is so easy to use and Aymen my point of contact provides exactly the right level of intervention

Posted 1 year ago