HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
XM information and reviews
XM
86%
Exness information and reviews
Exness
86%

Trading Bitcoin and Ethereum on Forex


The sharp rise in the price of Bitcoin has led many Forex traders to try to trade in Bitcoin and other altcoins. Indeed, if there is a financial asset that demonstrates a decent return, why not profit from it? We will explain the most important points you need to know in order to trade Bitcoin and other cryptocurrencies.

Cryptocurrency is a type of digital currency, in transactions with which security is ensured through the use of cryptography methods. Cryptocurrency has a characteristic feature - it is released and maintained decentralized, with the help of Internet users. Thus, a cryptocurrency differs from conventional electronic money in that it is simulated online and is in no way connected with any of the state monetary systems, i.e. does not depend on fiat money. Digital currencies are a relatively new phenomenon in the financial world. Since its inception, cryptocurrencies have begun to rapidly gain popularity and are currently among the most sought-after trading tools.

Some of the most popular cryptocurrencies for forex trading are Bitcoin, Bitcoin Cash, Dash, EOS, Ethereum, Ripple and Litecoin. But the two cryptocurrency pairs most often found in forex brokers’ arsenal are BTC / USD and ETH / USD. Altcoins call all cryptocurrencies that appeared after Bitcoin. At first they were only copies of the most famous cryptocurrency. Currently there are already several thousand of them, and their number is constantly growing. Please note that the presence of a particular cryptocurrency in the cryptocurrency exchange listings is not the main criterion for the attractiveness of this cryptocurrency as an investment tool. A more important indicator is the trading volume that this cryptocurrency generates on the exchange.

Usually during the day, prices for Bitcoin fluctuate between $ 5- $ 35 per coin, but there have been changes of more than 2000 points in one day. In 2013, the bitcoin rate increased by 5580%. To conclude a transaction on the trader's account must be at least 20% of the current market price of Bitcoin. For example, to conclude a deal to buy or sell at a price of $ 240 coins, a trader must have a minimum capital of $ 48.

Trading cryptocurrencies in the financial markets opens up unlimited opportunities for earnings: you can make profit both on growth and on lowering quotations. The cryptocurrency market has a number of distinctive features, such as round-the-clock work seven days a week, which allows you to carry out transactions at any convenient time. In addition, low liquidity often causes high volatility, which can lead to rapid emptying of a trading account.


The advantages of trading cryptocurrencies on forex:


Disadvantages of cryptocurrency trading

Many Forex brokers offer their clients cryptocurrency trading through the terminal. But as a rule, they have about 2-3 currency for trading. The most common trading terminal for trading cryptocurrencies is MetaTrader5, but some brokers offer their clients their own trading software.


Features of trading cryptocurrency pairs:

As a rule, most traders open a trading deposit in dollars. However, some forex brokers provide an opportunity to open a deposit in bitcoins. Trading a pair of BTC / USD is technically no different from trading conventional forex currency pairs. In the same way, deals for buying and selling are opened, stop loss and take profit orders are set. The key principles of technical analysis work in a pair of bitcoin / dollar, you can build trend lines, support / resistance levels, technical analysis figures and candlestick patterns. For trading Bitcoin on Forex, you can use the same technical indicators and trading advisors as for ordinary currency pairs.


When choosing a broker for trading cryptocurrency pay attention to the following points


The most promising cryptocurrencies for forex trading in 2019 are:


Conclusion

Though still very young compared to traditional currencies, cryptocurrencies are often called the future of trading. The popularity of digital money has not yet reached its peak and is growing daily, while services for crypto traders  are improving and developing at fast pace. If you are interested in making profits on the development of technology, you can safely invest in cryptocurrency. Now quite a few forex companies offer trading in cryptocurrencies and Bitcoin, in particular, and also open an account in Bitcoins. But before choosing one or another broker for trading cryptocurrencies, as well as a trading platform, we recommend that you familiarize yourself with the feedback from traders, this will allow weed out the most losing options in advance.

Author: Kate Solano, Forex-Ratings.com

RELATED

Investment Time Horizon: Definition And Its Role In Investing

Beginning investors who come to the stock market are inevitably confronted with terminology that is new to them. An accurate understanding of this vocabulary makes it possible...

Relative Strength Index

The Relative Strength Index (RSI) is an oscillator that measures a particular financial instrument's current relative strength compared to its own price history...

Five Bitcoin Day Trading Setups to Help You Make Money

Bitcoin trading has become big business in recent years as people have realised that the new and emerging market place is one that has the potential...

Is It The End Of The Cryptocurrency Bull Run?

A recent selloff across the cryptocurrency market has turned greed to fear, and in a flash nearly a trillion in value was wiped out from the market cap of cryptocurrencies...

The Dynamics of Commodity Trading: An In-depth Look

From the very clothes on your back to the coffee you sipped this morning, commodities influence our daily lives. This vast market encompasses a wide variety of goods...

Deep Dive Into The Current Cryptocurrency Market Trend

The cryptocurrency market is always on 24 hours a day, seven days a week. It never sleeps, takes a day or weekend off - not even on holidays like Christmas. The digital asset...

Fundamental Analysis

Company fundamentals, such as the amount of money the companies earns and how efficiently they utilise their resources, drive the share and CFD markets...

The Measurements to Take When Investing in Ethereum

Ethereum is among the top 10 digital currencies on the cryptocurrency market, according to market cap. As of April 2019, the market price of Ethereum was $152 per unit...

What Is Fibonacci Retracement? Definition & How To Use It

Setting the support and resistance levels is usually a problem for traders. It is especially inconvenient when trying to figure out from the beginning where to place them on the chart...

Basics Of Bitcoin Market Analysis

Many investors who are new to bitcoin don't know much about analysing individual digital currencies, so they can benefit significantly from learning some quick tips...

What Is A Recession? Definition, Causes & Warning Signs

Economic development is cyclical - a boom is always followed by a downturn. Such a downturn is called a recession, a phenomenon that recurs with varying frequency and depth...

Steps on how to trade Cryptocurrency in 2020

Every country has its own paper or fiat currency which is usually printed and controlled by the national or central bank. This is why forex transactions are important...

Position Sizing Using the Risk Reward Ratio

Position sizing involves making an objective decision about...

What Is the Safemoon Coin, and Can It Rise to the Moon?

The cryptocurrency market is moving so quickly that it's getting harder to keep up with new coins. Just days following the first big surge of Dogecoin, the market saw another...

The Mystery of Satoshi Nakamoto. Who is the mysterious creator of bitcoin?

If you were even a little interested in cryptocurrencies, you probably heard the name of Satoshi Nakamoto, probably the most mysterious person of the 21st century...

Demystifying ECN and STP Trading: A Comprehensive Overview

When setting foot in the trading realm, the first, and perhaps most significant, decision lies in selecting the right broker. The trading platform you choose will serve as your constant ally...

Maximize Your Profits in 2022 Through the Best Forex Advisors

Practically all modern Forex expert advisors are built on the foundation of the complex programming language called MetaQuotes versions 4 and 5, which are also used...

How to avoid analysts' mistakes?

We often hear about an undervalued asset, an unfair exchange rate, or an overvalued dividend forecast. In my opinion, such "expert" statements...

What is Leverage in Forex: A Beginner’s guide

Leverage can be an essential feature to use, especially when trading foreign currencies via Contract of Difference (“CFD”). Leverage allows you to open larger positions with relatively little capital...

Five Bitcoin Day Trading Setups to Help You Make Money

Day Trading is trading that moves fast. It involves making multiple trades in a market on a single day, quickly reacting to price fluctuations to make lots of small margins...

Vantage information and reviews
Vantage
85%
FP Markets information and reviews
FP Markets
81%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Just2Trade information and reviews
Just2Trade
76%
FXNovus information and reviews
FXNovus
75%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.