Even the most distant person from finance and trading heard the word ‘’cryptocurrency’’ once in his life. This digital asset has become an integral part of modern reality and is expanding its boundaries at the speed of light.
What can serve as a starting point for acquiring cryptocurrency and how to trade it in general? Well, the key part is a trading platform that provides everything you need to carry out deals with cryptocurrency.
In this article, we will understand what are cryptocurrencies and their types, and discuss what things you need to know to trade cryptocurrencies on a trading platform Metatrader 5.
Let’s begin.
The Various Types of Cryptocurrencies
Cryptocurrencies are digital assets that use cryptography to make sure the transactions are safe and to control how new units are made. The main difference between cryptocurrencies and regular money you should remember is that cryptocurrencies aren’t regulated by a government or central banks.
Let’s get acquainted with the most popular types of cryptocurrencies:
Bitcoin
The very first association that arises in our heads when hearing the word ‘’cryptocurrency’’ is Bitcoin. Being the first digital asset in the world, Bitcoin accounts for about 40% of all markets today. Note that, the total number of bitcoins available will only exceed 21 million, with almost 18 million already in circulation as we speak, which quite a lot increased its demand.
Ethereum
Developed in 2015, the Ethereum Blockchain is a trustworthy, decentralized global software platform powered by blockchain technology. It can be used to create any secured digital good from anything imaginable with an unlimited number of potential applications in sight. And the eponymous cryptocurrency named also ‘’Ether’’, is the second most popular crypto in the world.
Litecoin
Litecoin is a cryptocurrency that works in the same way as Bitcoin. It has shorter transaction times and more concentrated miners, which means it can be used for online payments just like other cryptocurrencies.
What is MT5?
After getting acquainted with cryptocurrencies, let’s understand what the MT5 means. It is a trading platform that is provided by brokers – traders carry out the deals of buying and selling products on, market monitoring, and other processes.
Not all brokers offer the MT5, so make research before choosing the one. Check out the RoboForex review as an example of a reputable MT5 broker.
Benefits of Trading on MT5
Unlike its predecessor and other trading platforms, the MT5 offers some benefits that simplify the trading process.
Some of them are:
built-it VPS – in case of lack of Internet and power failures
built-in economic calendar – to be updated to all news and economic events
21 timeframes and other technical analysis tools – every trader know the importance of technical analysis tools. Well, with MT5 you don’t have to worry about its effectiveness. The platform offers enough charts, timeframes, and indicators to trade.
How to trade crypto on MT5?
Let’s understand the 5 basic steps to follow to start trading cryptocurrencies on MT5.
1. Select a Broker
The first thing you need to think about is choosing the MT5 broker to trade with. Compare different options, pay attention to regulation, customer service, and leverage size the company offers. Check out the best forex brokers the Netherlands to explore the reliable brokers.
2. Open a Trading Account
After you have selected an MT5 broker, you need to open a trading account. Most brokers offer an option of demo accounts, which can be useful, especially for beginner traders. Experienced ones, in turn, can use the demo version to test a new strategy or trading plan. Once you feel ready, switch on a real account and start the activity.
3. Start to Manage Your Account
When you have already opened an account you have to manage it. Things you have to do are:
- determine the leverage size
- pay the initial deposit
- monitor the price movements
4. Enter a Trade Position
After choosing a cryptocurrency you want to trade, open a trading position already. To trade with MT5, you need to know the symbol of crypto you have selected and the spreads that the broker accepted.
5. Monitor the position
Entering a trade position and waiting for a miracle is not enough to achieve success in cryptocurrency trading. In fact, it is important to monitor the position as well. You need to filter out all the events that can affect the price, follow the demand and supply changes – in a word everything that can be a bit related to the cryptocurrency value. The MT5 provides all the necessary tools to carry out these processes.
Conclusion
The cryptocurrency market is growing rapidly and offers a unique investment opportunity. MT5 allows traders to invest in this market by providing access to various types of cryptocurrencies as well as other financial products.
As you see, trading cryptocurrency on MT5 is simple and can be done with just a few clicks.
To wrap it up we will add that we encourage you to try it out today and see for yourself how profitable trading cryptocurrency can be. Of course, all great things take time, but the sooner you start, the biggest will be the chances of success.
So, once you make a decision, act immediately.
