Because cryptocurrencies are such new assets, less is known about how they respond to the wide range of common market conditions which affect other, more established assets. Investors are also still waiting to see how cryptocurrencies might perform in a major financial crisis.

With this in mind it is important that you put in place a careful cryptocurrency trading strategy that is based on sound risk management. Our guide to trading cryptocurrencies at ETX will help you decide on which market you might want to to trade, how to trade it and how to monitor your position once you’ve opened it.

Getting started with cryptocurrency trading

Pick a cryptocurrency to trade

Visit our full market page for a list of the cryptocurrencies we currently offer. Remember, all cryptocurrency markets are relatively volatile so choosing a market that is right for your risk appetite is important. Ensure you understand how the cryptocurrency works, the challenges it faces and how it has performed over the medium and longer term before you open a position.

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Go long or short

Your research, analysis and market knowledge will help you decide on whether you want to open a Buy (going long) or Sell (going short) position. Deciding which direction to open your trade in is crucial, make sure you let your research and analysis guide your market entry point for maximum benefit.

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Making your trade

Because cryptocurrency markets are so volatile it is important that you protect yourself against excessive price movements by using smart risk management tools like stop losses and limit orders. Trailing stops can help you lock in profits and limit losses while we also offer Guaranteed Stops on some of our most popular markets. Remember, always trade within your budget and ensure that your account has enough margin to cover your position.

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Monitoring your position and exiting the market

Crypto markets can move quickly so staying on top of market moving events is crucial to the success of your trading. As more cryptos have moved into the mainstream so information about their price movements has become more widespread. Always ensure that you follow the news about the cryptocurrency you have traded very closely. It may help to visit coin forums and to stay on top of potential regulatory moves which could result in big price swings.

Placing your trade

When you have decided on a trading strategy and the direction of your cryptocurrency trade, you can quickly and easily place your order on our award-winning TraderPro platform.

You’ll find a number of smart risk management tools available directly in the trade ticket. To attach a stop loss, limit order or Guaranteed Stop to your position, simply select the relevant option and enter your chosen price points.

Our Guaranteed Stops are available on many of our most popular markets and allow you to fix your risk and avoid the impact of market gapping or slippage. You can lock in the exact risk level that you feel most comfortable with and trade with greater peace of mind.

Monitoring your position and exiting the market

Our powerful iOS and Android apps let you monitor your position closely, even when you’re on the move. When you trade on a volatile market like cryptocurrencies, it is important that you make use of advanced charting tools like indicators and oscillators to track market movement as it reaches key support and resistance levels.

Our advanced charting and drawing tools are available on our desktop platform, as well as on our mobile apps and will help you map out a clear strategy for when best to exit the market.

* Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.

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