Cryptocurrency trading for beginners on Deriv

This post was originally published by Deriv on 10 March 2022

Trading cryptocurrency is no different than trading any other financial markets. When you start your crypto trading journey on Deriv, one of the things you’ll need to know is that you don’t need to buy or own the actual cryptocurrency. Instead, you predict their price movements and gain profits if your predictions are correct.

Before diving in, you should understand the basics of this market, such as what cryptocurrency is and how it works. Once you are confident with your knowledge, let’s learn more about trading them.

How to trade cryptocurrency

Cryptocurrencies are traded in pairs. In fact, it’s just like trading fiat currency pairs on forex. Let’s see how it works when you trade crypto CFDs, taking the BTC/USD pair (Bitcoin against the US dollar) as an example.

If you predict that the value of Bitcoin will rise against the US dollar, you can open a buy trade, and if your prediction turns out to be right, get a payout. Similarly, you can go for a sell trade if you think that the value of Bitcoin will fall.

Here is how it works in a nutshell:  

On Deriv, you can trade the world’s most popular digital coins with either CFDs or multipliers, and potentially profit from their price movements without needing to buy or own the coin itself.

How to trade cryptocurrency with CFDs on Deriv

Deriv offers 2 CFD trading platforms with cryptocurrency trading: Deriv MT5 and Deriv X.

Deriv MT5 is our version of the world’s most popular CFD trading platform, while the Deriv X platform offers CFD trading on a highly-customisable interface.

Here are some of the cryptocurrencies you can trade with CFDs on both platforms:

For the full list of cryptocurrencies that you can trade on Deriv, head to the cryptocurrency page.

Most of them are traded against USD, while Bitcoin is also traded against Ethereum, Litecoin, silver, and gold.

You can start your crypto CFDs trading journey with Deriv in just 4 simple steps:

1. Create a Deriv MT5 Financial or a Deriv X account (if you’re residing in the EU, you’ll need to create a Deriv MT5 CFDs account).
2. Select your preferred crypto pair.
3. Set up the required trading parameters.
4. Place your trade.

How to trade cryptocurrency with multipliers on Deriv

You can trade cryptocurrency with multipliers on 3 of our platforms: Deriv Trader, Deriv Bot, and our mobile trading app Deriv GO.

Deriv Trader is an intuitive and user-friendly platform, Deriv Bot can help you automate your strategy with a trading robot, and Deriv GO is our flagship mobile app that allows you to take your trades on the go.

Here are the cryptocurrencies, both traded against USD, available to trade with multipliers on all 3 platforms:

Placing a trade with multipliers is quite simple. All you need to do is set your stake, select the multiplier, and place your trade. Use risk management tools like take profit and stop loss to manage your trades better.

Ready to try trading cryptocurrency? Choose your favourite platform and create a risk-free demo account. This account comes loaded with 10,000 USD virtual money to practise your skills!