Cryptocurrency trading on Forex: a guide for beginners

The volatility of virtual coins remains quite high, the rate fluctuations per day can reach several percent, which means that you can get good profit from trading crypto. Cryptocurrencies can be traded both on a stock exchange and on Forex brokers sites.

The article focuses on cryptocurrency exchanges, as they are specialized platforms for trading and exchange operations with valuable coins. The principle of trade, the creation of orders for purchases or sales are mostly similar on all exchanges. Therefore, the process of trading cryptocurrencies and the peculiarities of user interface we will review on the example of such exchanges as Bitmex, EXMO, Binance, Livecoin. These exchanges are popular among customers; have a clear and simple interface; convenient ways to replenish the account and withdraw funds; all major cryptocurrency pairs are represented.

Cryptocurrency trading takes place 24/7 without interruption due to decentralization. You can trade both for growth and for the fall of an asset. Currently, there is an increase in basic cryptocurrencies with short-term kickbacks, so one of the most reliable strategies is to buy from the support area and sell after updating the maximum from circular values. To trade in cryptocurrencies, you can apply some strategies and technical analysis, which is used in forex.


Overview of cryptotrading exchanges in 2019

  • Bitmex Marginal cryptocurrency trading: Bitcoin, Ethereum, Bitcoin Cash, Ripple, Tron, EOS, Cardano, Litecoin. The maximum leverage when trading Bitcoin is 100x, i.e. you can make transactions with a turnover of 100 times the deposit; for Ethereum - 50x; Ripple - 20x, etc. Exchange ranks first in terms of margin trading. Daily deals are made here for more than $ 1 billion. The launch of the platform was in 2014. Deposit can be made Bitcoin, which is denoted by XBT.
  • Localbitcoins Trading Bitcoin cryptocurrency between clients of the site. Of the features, you can highlight a large number of payment systems for replenishing and buying crypto coin. After registration, a wallet is provided for storing cryptocurrencies. Marginal cryptotrading is not provided. The exchange is one of the oldest bitcoin exchange platforms.
  • Exmo. A well-known exchange for trading cryptocurrency and the possibility of using fiat currency. The site offers top cryptocurrencies: Bitcoin, Ethereum, Litecoin, Ripple, EOS, Stellar, Cardano, Tron, Dash, Monero, Zcash, Waves, etc. Present in the listing and little-known altcoins are SmartCash, KickCoin, Helbiz and others. Trade commission is 0.2%. The trading volume on January 3, 2019 was $ 22 million, or 6 thousand BTC.
  • Binance. Popular crypto exchange with a turnover of 600 million US dollars (03/01/2019). The exchange was created in 2017 and at the beginning of 2018 entered the top 3 of the world ranking in terms of volume. Fiat is not on the stock exchange, input / output can be made using cryptocurrency. 162 coins are available for trading: from little-known altcoins to major coins with large market capitalization . Commission is 0.1% of the transaction. Two terminals are available for trading: the main and the extended.

The EXMO Exchange ranks 24th in terms of daily turnover (as of November 23, 2017, it is equal to 5203 BTC). 13 cryptocurrencies are available for trading on the site: Bitcoin Cash (BCH), Bitcoin (BTC), DASH, Dogecoin (DOGE), Ethereum classic (ETC), Ethereum (ETH), KICK, Litecoin (LTC), Tether (USDT), WAVES , Monero (XMR), Ripple (XRP), Z-cash (ZEC). A total of 43 currency pairs are represented. On EXMO, new coins are periodically added, for example, from November 22, the bitcoin cache is included in the listing, which appeared in August after the Bitcoin hardfork. Official website of the trading platform: exmo.me.

Cryptocurrency trading on the Exmo exchange, as well as on other platforms, consists of the following stages.

The first step is to create an account. Without registration you will not be able to trade. The process is very simple - on the main page of the exmo.me website, enter your e-mail address, create a password and click "Register". Pre-read the User Agreement and give your consent to accept all the points set out in it. Consent to the E-mail newsletter is your choice, but I note that the company often publishes and sends interesting articles about cryptocurrencies and announces news.

The second step is to confirm the registration by clicking on the link in the letter you receive. I note that you do not need to verify your account if you plan to use some payment systems for deposit and withdrawal (cards, bank transfer, etc.)

The third step is to replenish the balance for trading cryptocurrencies.

There are two options:

  • EXMO company recommends using special EX-CODE codes (vouchers) for replenishment, since this is the fastest, most convenient way and that is important, the exchange does not take commission.
  • Codes are bought from the exchange service. I recommend proven services: Prostocash, Xchange, 60cek, because I periodically use them myself. You must specify the amount and currency of the exchange, and choose EXMO (USD or EUR) as the recepient.

Then the code must be downloaded in the section "Wallet" - EX-code – "Add up".

Alternative method: after creating an account, accounts in fiat money (dollar, euro) and cryptocurrency are available to you.

To replenish, go to the "Wallet" and in front of the desired account, click "Refill". For example, the following payment systems are available for the USD account: Perfect Money, EPAY, CryptoCApital, WireTransfer, Money Polo, Advcash, OKPay, Neteller, Payeer:

After receiving the money in the account, you can start trading directly with cryptocurrencies.

Go to the section "Trades" and select the desired currency. For example, all pairs with US dollars. Choose the most popular: BTC/USD.

A chart is the movement of the price of an asset over a period of time. It is mainly displayed as candlesticks. "The body of the candle" shows the level of value at closing and opening a temporary period. Red marked "bull", blue - "bear", but the color may be different. Thin lines are "shadows." On the chart, you can select the desired timeframe: day, week, month, year. For short-term trading in cryptocurrency during the day - the time interval is "day"; for the medium term - "week", etc.

Analyzing the BTC/USD chart: after the maximum update ($ 7,500) at the beginning of November, the asset price pushed off the resistance area and rolled back due to investors closing deals and triggering sell orders. From the support area ($ 5600-5700), cryptocurrency was bought again and the price re-returned to the same value and without resistance broke through there. As you can see, trading from levels in the presence of confirming signals is quite effective.

How to trade cryptocurrency and place an order to buy or sell on exmo.me?


To do this, select the type of trading order:

  • Limit - purchase or sale of the required amount of a cryptoactive asset at the price indicated in the application (you choose the price yourself).
  • Market - instant purchase or sale of a coin at the market price

The main condition for triggering a limit order is that the price should reach the value you specify (set a reasonable value for it). If this does not happen, the order must be canceled (without commission) and create a new one, and this is lost time and profits. Therefore, it is best to buy on the market.

An example of a limit order. We buy 12 BTC at a price of $ 8,100 for $ 97200, and then sell the same amount of $ 10,000 for $ 120,000. Net profit without commission: $ 22,800.

An example of a market order: you must specify the purchase amount in BTC in the "Quantity" line or in dollars in the "In the amount" line. If there is enough money on the balance, the order will be instantly executed, and you will receive a cryptocurrency account on BTC. Exchange Commission 0.2%.

You can trade this way: buy at the market, and then create a limit order for sale. Bitcoin trend is up and there are all prerequisites to sell more expensive and make money on the difference in the course. Analysts predict a further appreciation of Bitcoin.

All trade orders fall into the order book, where you can see how much and at what price other traders buy or sell coins. They are sorted at the rate - the best offer.

Also, the history of trading on the crypto-broker site is available for general viewing.

The exchange of cryptocurrencies for beginners is implemented on the Exmo.me exchange through the "Exchange" tab. In the form you only need to choose the currency and amount.

Cryptocurrency trading on Livecoin


Cryptocurrency trading on the Livecoin platform is similar to other exchanges. The listing of the site includes 168 coins: from the most popular to the recently appeared. A total of 335 currency pairs are available for trading. Daily turnover 3316 BTC and 32 place in the list. Official website of the platform: livecoin.net.

To trade a cryptocurrency you need to create an account and replenish the account balance.

Livecoin vouchers of the desired denomination can be purchased at online currency exchange offices and can be redeemed.

Or, use the methods offered by the exchange for entering money. For example, for an account: Capitalist, Advakesh, Payeer, Okpay.

For crypto-trading on the stock exchange, go to the "Trade" section: And choose which currency pair to trade. For example, buy bitcoins for US dollars.

We proceed to the creation of a market order - only the quantity is indicated, the execution - at the market price. Creating a limit order - you need to specify a reasonable price and quantity.

Also, it is possible to view the history of transactions and open positions of traders (order book) on the Livecoin exchange.

Other exchanges for cryptocurrency trading


In the examples above, the basics of trading cryptocurrency and creating orders on the EXMO and Livecoin exchanges were shown. Now I will give a rating of the top 10 largest cryptobirds in terms of day trading:

  • Bithumb is the largest global stock exchange located in Korea. More than 20% of the cryptocurrency trading volume falls on it. Listing 10 coins: BCH, BTC, DASH, ETC, ETH, LTC, QTUM, XMR, XRP, ZEC and 10 pairs with them. There is an English version of the site.
  • bitFlyer is a large Japanese stock exchange, the second in terms of turnover (13%). Three cryptocurrencies are available for trading: BCH, BTC, ETH. The site most likely you will not go, as visiting from other countries is prohibited.
  • Bitfinex is the third exchange for daily cryptocurrency trading volume. There are 24 crypto coins in the list: Bitcoin, Bcash, Ethereum, NEO, Litecoin, Dash, Monero, Ripple, Zcash, Ethereum Classic and others. Registered exchange in Hong Kong. There is a choice of English language.
  • Bittrex is an American cryptocurrency trading platform (9.5%). Available for cryptotrading 203 coins. The site is only in English.
  • Coinone is another South Korean cryptocurrency exchange. On the site 7 coins are traded: bitcoin, bitcoin cash, ethereum, litecoin, ripple and others.
  • Poloniex
  • coincheck
  • Gdax
  • Korbit
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