How to trade cryptocurrency
What are cryptocurrencies?
How does cryptocurrency trading work?
How to start trading cryptocurrency with easyMarkets
Unlike the multiple steps involved with owning and trading actual cryptocurrencies, trading CFD cryptocurrencies is much simpler.
To trade cryptocurrencies with easyMarkets markets, you can sign up with just your email, deposit and trade. At some point, for your own protection, you will be asked to provide KYC documents and information about your knowledge, experience and financial profile which you can do so via our convenient and secure tool.
After you sign up and deposit you are ready to start trading with easyMarkets. When trading on easyMarkets web platform and app, you will have access to innovative and exclusive tools and conditions.
Protect your account
Undo losing trades within a specified amount of time for a small fee.
You can protect your account by setting the highest and lowest levels you are comfortable with
Trade in completely new ways:
Set up quick hedges to help mitigate risk during events or announcements
Pause live rates momentarily so you can open and close trades
Trading on easyMarkets Platform
easyMarkets has invested a large amount of research and development to create a trading platform that is both intuitive for new traders, but powerful enough for experienced demanding traders.
To the right you will find all the instruments you can trade, with live rates. The center of the platform is the “trading area”. The tabs at the top give you four options of order types or ticket types:
Straightforward buy or sell order, popular with day traders or high frequency traders. This trading ticket also features Freeze Rate and dealCancellation.
This is something that to their detriment many beginners overlook, currency markets move frequently and rapidly. Knowing what affects these markets and what times volatility is higher can help you avoid these movements or even take advantage of them.
Lock in today’s rate for a future date up to 30 days. Usually used as a hedge against future volatility.
Set a rate you would like your trade to open at. The trade will be executed when that rate is reached, at which point “turns” into a day trade.
To the right of the “trading area” is the “analysis area”. Here you can choose between charts, market news, signals and a financial calendar. When in chart view mode, you have a choice of adding indicators, overlaying other instruments (compare), changing time frames and chart type. You can also save your indicators and overlays with the “templates” option.
You see open trades in the section directly below the “trading area” with each ticket occupying their own tab with an option to see all of your positions under “See All” tab. If you have activated dealCancellation and would like to undo your losing trade, the rate will show in red and the numerals will be struck out. Click on the red rate (button) and undo the trade, recovering your funds.
Factors that affect cryptocurrency prices
There are numerous factors that influence the price of cryptocurrencies. One of the biggest motivators of the price is supply and demand. Here are a few more factors:
This is something that to their detriment many beginners overlook, currency markets move frequently and rapidly. Knowing what affects these markets and what times volatility is higher can help you avoid these movements or even take advantage of them.
As mentioned above cryptocurrency prices are largely moved by supply and demand. News and coverage (which was seemingly ceaseless during the Bitcoin Bull run) can cause a surge of speculative trading, making the price jump, or inversely a drop if the news is negative.
If a disagreement amongst the community exists, then the fork might result in a completely separate cryptocurrency – like Bitcoin and Bitcoin Gold. Of course, this is a simplified version of what happens during a fork; for a more in-depth explanation you can visit this link.
Cryptocurrency FAQs
Crypto CFDs are a type of trading vehicle which follow the price of cryptocurrencies. They allow you to trade the price of cryptocurrencies without obligating you to own the underlying asset. This not only makes the process of trading cryptos is simpler and more immediate, but it also protects you against exchanges being hacked, your cryptocurrency wallet being lost, or being stuck with a cryptocurrency asset that is quickly becoming devalued.
You can start trading with just $25. That is easyMarkets minimum deposit and with easyTrade, one of easyMarkets proprietary ways to trade, you can start trading cryptocurrencies almost immediately. Another great benefit is that easyTrade allows you to set the maximum amount you are willing to risk, without putting a cap on your potential.
Leveraged trading cryptos are only available when trading CFD cryptos or cryptocurrencies. Leverage basically increases the size of your trade. For example, if you have a $5 trade with 1:10 leverage, you are instead trading with the equivalent of $50.
Of course, this does increase your risk (or exposure to the market) as it “amplifies” price movements, both positively and negatively. When using leverage your broker will also require you to a certain amount of funds in your account, called margin, a type of collateral for the leverage they are offering you. This amount remains in your account and is freed when you close your trade.
As with any type of trading risk is involved. No type of financial trading or investing is completely safe. That being said there are two ways to avoid unnecessary risk: first, read easyMarkets cryptocurrency trading book for beginners to learn everything you can about the market and instrument you are trading. Second, trading with a creditable CFD broker will help you avoid the risk associated with potentially losing your wallet or the exchange you are using being hacked.
The difference between FOREX CFDs and cryptocurrency CFDs are primarily the instruments involved. In Forex, the instruments involved are FIAT currencies or currencies issued by Central Banks from around the world. When trading CFD cryptocurrencies only one of the two instruments in the pair is a FIAT currency, and the other is a cryptocurrency. When trading with easyMarkets cryptocurrencies are traded against USD.
