Within a relatively short period of time, cryptocurrencies have become a top choice of investors and traders thanks to the promising opportunities they provide. With its volatile nature, wide adoption, and blockchain technology, it is no wonder this decentralized digital asset class quickly became a favorite among market enthusiasts. As a result, various trading platforms have now integrated cryptocurrencies to accommodate the needs of an increasing number of crypto traders, with MetaTrader 5 being one of them.
MetaTrader 5 (commonly known as MT5) is one of the most popular multi-asset platforms that allows the trading of diverse instruments, including forex, stocks, commodities, metals, and cryptocurrencies. When trading on MT5, you can facilitate your trades with numerous analytical tools and advanced features.
Moreover, MT5 is a reasonable platform for both beginner and professional traders as it is compatible with trading robots and Expert Advisors, and offers customized indicators, hedging methods and more, besides the standard features.
Trading crypto CFDs via MetaTrader 5
On the MT5 platform, you can trade CFDs, or contracts for difference, on cryptocurrencies, to try and benefit from price fluctuations. CFD trading works similarly to forex trading as the digital currencies are present in the form of pairs against fiat currencies such as BTC/USD, or against each other such as BTC/ETH, if your broker supports it. When dealing with crypto CFDs, you speculate on the future price direction of the relevant currency, and can also use leverage to potentially increase your returns (whilst remembering that leverage can also magnify losses if your prediction is wrong).
easyMarkets is a prominent example of a trading provider offering CFDs on multiple instruments such as forex, indices, stocks, commodities, and cryptocurrencies. This well-regarded broker has recently added MetaTrader 5 to its platform roster, opening a new way for their users to navigate the markets.
With MT5, easyMarkets clients can now opt for variable spreads and use higher leverage of 500:1 (depending on their region) with no commissions or hidden fees. There is also negative balance protection on the easyMarkets MT5 platform with free stop-loss and take-profit. Additionally, you can take advantage of expert advisors (EAs) to assist you in your trading ventures or automate the process.
To start crypto trading, you first need to choose a trading broker offering a collection of digital currencies tradable via MetaTrader 5. For added peace of mind and security of funds, it would help if you choose a broker regulated in reputable jurisdictions (for example, easyMarkets mentioned above is regulated in Australia and the EU. Check the crypto trading regulations in your jurisdiction beforehand to avoid exposure to unnecessary risk. After choosing the broker and opening an account with them, you need to make a deposit to begin trading. Afterwards, you can log into MT5 by inserting your account credentials and accessing the cryptocurrency markets.
Orders are placed based on your analysis and prediction of future price movements. Moreover, you can open both “long” and “short” trade positions when trading crypto CFDs; for example, if you forecast a decline in Ethereum’s value against the USD, you can enter a sell trade. It should be noted that the value of your trades are dependent on the leverage you select and your available capital.
Undoubtedly, proper market research is essential when doing price analysis to achieve stable results. This is where the MT5 platform shines, as it provides traders with dozens of tools and indicators to study market dynamics proficiently.
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