How Do You Start to Trade Crypto CFDs? A Step-By-Step Guide

Crypto CFD trading is based on price speculations only; you don’t actually own the underlying asset. Given that exchange wallets have proven vulnerable to theft and hacking, this form of derivatives trading has been gaining popularity among crypto enthusiasts – especially as traders can also benefit from rising and falling markets.

To ease the process of trading crypto CFDs, FCA-regulated broker, Blackwell Global, has launched the largest crypto-CFD offering in the world, allowing traders to choose from 15 different coins that can be traded from a single account. To make things even easier, here’s a step-by-step guide to how you can start trading.

How Do Crypto CFDs Work?

Using all the tools and indicators available, it is possible to speculate on the direction of price movements. Based on your assessment of the markets, you can then enter into a contract for difference. If the price moves in the direction you predicted, when the contract expires, you will be rewarded with units of the currency bought or sold, based on the contract. Of course, if your prediction does not pan out, you will bear a loss.

Now, when you enter into such a contract, you can either hedge against another cryptocurrency or against a fiat currency, like USD or EUR. So, you will be trading in pairs like BTC/USD, BTC/EUR or something like ETH/BTC, DSH/BTC and so on. If you think a coin will rise, you can go long and if you believe that the price will fall, go short. This allows a profit potential in both rising and falling markets.

Leverage is an important concept to understand here. When you are opening a trade, you will be required to deposit a portion of the total value of the trade.

Blackwell Global offers 50% margin requirement and leverage of up to 400:1. However, keep in mind that while trading on margin will magnify the scope for returns, it will also magnify losses. So, trade only what you can afford to lose, rather than getting tempted by high leverage.

Margin call at Blackwell Global is set at 80%. This is the minimum amount required to start trading. If your account goes down to this level, you will have to make additional deposits. In case you are unable to maintain sufficient balance in your account, a pre-set stop-out level will be activated, such that your positions will get closed automatically, preventing any further losses. The stop-out level at Blackwell Global is set at 50%.

Start Trading on a Live Account

FCA-regulated Blackwell Global takes the security of its clients’ funds very seriously. To open a live account, you will have to fill in all the necessary information, including personal details like proof of address, proof of identity and other important information. You will then need to choose an account type. Different account types have different leverage options. Usually the Standard/Classic account has a 2:1 margin.

When you trade crypto CFDs with Blackwell Global, you get to choose from 15 different cryptocurrencies. In addition, you can also trade forex and commodities from the same account. Trading here will be conducted on an “on the spot” basis. Trades are usually settled within two business days.

You will be trading on the robust and highly popular MT4 platform, which comes fully loaded with advanced charting packages and more than 30 different indicators. Blackwell Global has launched an extensive educational portal, especially dedicated to its crypto investors, called The Crypto Zone. This portal provides a wide variety of information and the latest news in the industry, along with tons of useful crypto-specific indicators to make trading easier.