CFDs and how to avoid risks across digital currencies

Cryptocurrencies are attracting the attention of a much wider public, as cryptocurrencies are accepted as a means of payment in more and more places. Cryptocurrencies are also starting to generate a lot of interest as an alternative investment. A large part of this is due to the headlines generated by huge jumps in Bitcoin’s value. The price of Bitcoin began in 2017 at around $1,000, and rose to more than $19,000 by December of the same year. In 2021, it reached its highest historical level at levels of 68 thousand US dollars in November, and then began to decline in 2022, reaching 42 thousand in April.

This new asset space gained more credibility when several exchanges launched cryptocurrency trading via Bitcoin futures. Many people engage in cryptocurrency trading by buying and selling the actual digital currency itself.

There are disadvantages, including:

  • The processing time for buying cryptocurrencies is slower than the instant executions that print CFD trading.
  • Purchasing actual digital currencies is done through unsupervised wallets and is considered decentralized.
  • The possibility of hacking Bitcoin and Ethereum wallets, which are exposed to major risks such as theft.

You can easily avoid all these worries by trading cryptocurrencies via CFDs. Using CFDs allows for very fast transaction times, which is beneficial for such a volatile market.

Trading digital currencies via CFDs provides many other benefits, including: High financial leverage: Trading CFDs allows the use of high financial leverage, which means you can trade larger amounts of digital currencies with less money. This can increase the chances of profit significantly, but leverage must be used with caution so that the trader is not exposed to significant risks.

Digital currencies and trading of their symbols

Symbols used to represent major cryptocurrencies against the US dollar:

  • Bitcoin against the dollar – symbol: BTC/USD
  • Impact against the dollar – symbol: ETH/USD
  • Bitcoin Cash against the dollar – symbol: BCH/USD
  • Litecoin against the dollar – symbol: LTC/USD
  • Ripple against the dollar – symbol: XRP/USD
  • Ethereum Classic against the Dollar – Symbol: ETC/USD
  • Dash Coin against the dollar – symbol: DSH / USD
  • Stellar against the dollar – symbol: XLM / USD
  • EOS against the dollar – symbol: EOS/USD
  • Monero against the dollar – symbol: XRM/USD
  • Zcash against the dollar – symbol: ZEC / USD

Symbols of the main digital currencies against the euro:

  • Bitcoin vs. Euro – Symbol: BTC/EUR
  • ETH/EUR – Symbol: ETH/EUR
  • Bitcoin Cash against the Euro – symbol: BCH/EUR
  • Litecoin vs. Euro – Symbol: LTC/EUR
  • Ripple against the Euro – Symbol: XRP/EUR
  • Ethereum Classic against the Euro – Symbol: ETC/EUR
  • Dash Coin vs. Euro – Symbol: DSH / EUR
  • Stellar vs Euro – Symbol: XLM / EUR
  • EOS vs. Euro – Symbol: EOS/EUR
  • Monero vs. the Euro – Symbol: XRM / EUR
  • Zcash against the euro – symbol: ZEC / EUR

Finally, the cross-currency pairs:

  • Bitcoin Cash vs. Bitcoin
  • Dash Coin vs. Bitcoin
  • EOS vs. Bitcoin
  • Ethereum Classic vs Bitcoin
  • Ethereum vs. Bitcoin
  • Litecoin vs Bitcoin

There are several reasons why you would like to trade digital currencies via CFDs. Trading digital currencies via CFDs may come with certain advantages, such as the ability to: Trade CFD contracts, buying and selling digital currencies, which means that you can profit from rising and falling markets.

Use leverage when trading cryptocurrency CFDs. This means that you can control larger trades with a smaller deposit.

You can also trade cryptocurrency pairs linked to the Euro 24 hours a day, 7 days a week!

Digital currencies and how to trade successfully

No matter what market you trade cryptocurrencies in or what style you choose to adopt, trading is about making a decision about whether or not you actually want to trade. Most people don’t like to make financial decisions right away. In fact, most people like to take their time before making a big financial decision – analyzing the facts, doing their research and so on. Cryptocurrency trading should be no different!

The best cryptocurrency traders know this and will work to improve their trading environment in order to control and regulate the way decisions are made. Here are some of most important facts you may find from  best cryptocurrency traders:

  1. Choosing a specific trading style: Choosing a digital currency trading style is important because it will determine how you make trading decisions and direct you towards the information you need for the most appropriate analysis of your goals.
  2. Do research and analysis: The best digital currency trading decisions are those that involve a good level of prior research and analysis. The type of research and analysis you do depends on how much weight you give to technical and fundamental analysis.
  3. Keep your emotions and external factors away from the markets: The decisions you make are often a reflection of the quality of your life. If you have negative and mixed emotions outside of the markets, it will creep into the decisions you make when trading.
  4. Be realistic and focus on risk related to reward: Cryptocurrency trading is all about possibilities because it involves winning and losing. Risk management is a fundamental principle in not only becoming a successful trader in cryptocurrency trading but in the rest of the markets as well! For example, using a stop loss is one way to protect yourself from large losses.

Digital currencies and advanced trading features

  • Protection against fluctuations.
  • Limiting the maximum price slippage on the market and stop orders.
  • Limit or completely avoid losses from pending orders that fall into price gaps.
  • The ability to fill large orders by enabling partial filling operations and allowing your orders to be filled part by part.
  • Executing limit orders and collecting profits even at high spot prices by converting them into market orders.
  • Avoid activating orders due to wide price differences, when there is no actual movement in the market.

The best digital currency trading platforms: MetaTrader 4 and MetaTrader 5 are among the best digital currency trading platforms at the present time. As for how to connect to a digital currency trading account in MT4 or MT5

  • Open a real trading account
  • Download one of the MT4 or MT5 digital currency trading platforms
  • Open the platform and click on the “File” tab at the top left of the screen
  • Select “Log in to trading account” and enter your trading account details
  • Open the chart of the selected digital currency
  • Click “New Order” when you want to buy or sell

Where can I find digital currencies on the trading platform? If you cannot see the cryptocurrencies mentioned in our previous article, and you want them on MetaTrader charts, just go to the “MarketWatch” window on the left side of the platform. In that window, you will see a list of trading instrument icons. To see this list, right-click in the MarketWatch window and choose Show All. You should now see your desired digital currency in the price list

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