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.

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