Cryptocurrency Trading

Cryptocurrencies – like any trading instruments – are never risk-free. The potential to generate profit is matched by the potential to make a loss. But this in itself shouldn't put you off trading crypto. As long as you know the risks, you're best placed to make crypto trading work for you.

But it's worth bearing in mind that there are some risks that are unique to the crypto market.

• Digital: Bitcoin and other cryptocurrencies exist purely in the form of digital codes. There are no tangible assets to possess. The foundation of these currencies are types of database called blockchain. Encryption offers a significant amount of security, but hacking threats remain.
• Regulation: As cryptocurrencies grow in popularity, regulation has failed to keep pace. Many countries don't regulate their use or consider them to be legal tender. In the UK, the FCA has deemed crypto products as being only suitable for professional clients – not retail clients.
• Volatility: The crypto market is arguably the most volatile market for traders to invest in. As such, the change in price from one moment to the next can be sudden and dramatic. This has the potential to magnify your profits. But it can also have the same effect on your losses.

Yes.

To start, options such as Bitcoin and Litecoin are set up to provide a digital alternative to fiat –or payment – currencies. Others, like Ethereum, are 'altcoins'. Instead of being used as a way to pay for things, it's a platform on which you can create blockchain apps or new tokens.

Other cryptocurrency types can help users exchange crypto assets or manage personal data.

With TradingExcel, you can trade more than 40 cryptocurrency CFDs. Bitcoin and other options such as Litecoin or Ethereum are perhaps the best known. But our crypto trading platform also offers pairs including EOS, Ripple (XRP), and Dash.

Open a crypto trader account

One of the key reasons why investors are increasingly looking towards the crypto market is the volatility. Price changes can be rapid and dramatic. And, with it, comes the chance to make big gains on an initial investment. It does, however, mean there is an increased risk too.

Liquidity is another reason to trade crypto with TradingExcel using CFDs. Our crypto trading platform takes its prices from numerous exchanges. As such, we can offer competitive spreads and quick execution. For traders looking for rapid gains, that can make all the difference.
Don't forget, with your TradingExcel crypto trading account, you can access the markets all day, every day. With the MT4 platform, you can do that on any device and from any location too.

No market is immune to internal and external forces. Crypto is no different. The factors that can influence the crypto market include:

• Supply and demand: The price of cryptocurrency can rise sharply if demand outstrips supply. If there is a surplus supply, the price will fall.
• Regulatory decisions: Countries are still grappling with how to regulate crypto. Some are even banning it outright, which is something to be aware of.
• Fiat currency markets: Much like some fiat currencies can impact the value of others, they can also drive the price of crypto up or down.
• Press and media: News reports can heavily influence confidence in crypto, whether it's positive or negative.
• Technology and infrastructure: It's not all about the security of crypto exchanges. As crypto integrates with more payment systems, its value will increase.

Like all CFD trading, the most successful crypto traders understand what they're trading – and how it works. It's also essential to have a strategy that sets out what you want to achieve and the best way to do it. By having this strategy in place, you're well-positioned to make a profit.

After opening your cryptocurrency trading account with TradingExcel, it's time to choose the trades you want to make. With our range of tools and analysis at your fingertips, you'll have the best information to hand before deciding. You might look to capitalise on a booming cryptocurrency. Or you could be simply looking for quick-return opportunities. With us, you'll find them.

Other factors that can help you succeed in the crypto market include the timing of your trades and keeping track of your current open positions. You should always be 100% sure what your current exposure is. Otherwise, a small loss could soon start to accumulate.

With our cryptocurrency trading app, there's a small commission to pay as you open and close positions. TradingExcel's commissions are 0.5% half-turn, with a minimum 0.01 lot transaction size.

For more details, consult our Knowledge Base.

A Swap charge is applied on crypto trading accounts for clients who move their positions to the next trading session. This is 10% per annum of the value of the open position.

At TradingExcel, we're always here if you need further support. Contact us with any queries or concerns you have. Our live chat service is open 24 hours a day, five days a week too.