| Online Broker | Minimum Deposit | Namecoin Trading Platforms |
|---|---|---|
| FXOpen | $1 Minimum Deposit | MT4, MT5, TickTrader Namecoin Trading Platform |
| IC Markets | $200 Minimum Deposit | MT4, MT5, cTrader Namecoin Trading Platforms |
Namecoin
It is possible to trade Namecoin CFDs at some CFD brokers, with no wallet required.
What is Namecoin ?
Namecoin is a fork from Bitcoin used for registering Internet domain names and storing values from this process in the blockchain. Like other domain registrars there is a fee associated with domain name registration which in the case of Namecoin is a registration fee plus transaction fees. Nobody receives the registration fee and the miners who mine Namecoin (i.e. process the data) receive the transaction fee just like Bitcoin (i.e. the fee incentivises miners to process data). Domain names must also be renewed which happens based on block generation (blocks are parcels of data mined by miners, which compose the blockchain).
Namecoin while it forked from Bitcoin closely follows the code used in Bitcoin but with additional changes on top of the Bitcoin code. These changes allow the change in functionality from a virtual currency to a naming system. So Namecoin is not designed to be a currency, however its value token NMC is traded on cryptocurrency exchanges. Like Bitcoin the total number of NMC is limited to 21 million and the inventor of Namecoin did not reveal their identity (Namecoin was the first fork from Bitcoin).
CFDs are Contracts for Difference and are contracts which reference the value of NMC on exchanges. Thus the trader may trade NMC CFDs without owning NMC and therefore do not need a wallet, can go long or short and can use leverage (but increasing leverage increases risk and cryptocurrencies are extremely volatile).
