Can You Trade Cryptocurrencies Like Forex?

There are forex and CFD platforms that allow you to trade cryptocurrencies, so you can. YES, you can do this! Because of this, there are a lot of big differences between trading crypto on a forex or CFD platform and trading the real thing on a crypto exchange.

They trade them on Forex and CFD platforms.

On most forex and CFD platforms, you can buy and sell contracts for differences in the value of cryptocurrency (CFDs). In other words, the vendor is making a deal with the CFD provider on a certain asset (such as Bitcoin). This is how these derivatives work: They are based on the asset price movements, but they don’t change or own the digital cryptocurrency itself.

This means that no real currencies are being traded, and there are no wallets or addresses to worry about. This also reduces the chances that even the best and most secure crypto exchanges will be hacked, even if they are the best and most secure. CFD traders can focus on how to make money when the market moves.

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On forex and CFD platforms, you can make money when you have a Buy position, and the sell rate of the cryptocurrency rises above its opening buy rate. If you have a Sell position, you make money when the buy rate of the cryptocurrency falls below its opening sell rate. If the sell rate drops below the opening buy rate, buy positions will lose money. If the buy rate rises above the opening sell rate, sell positions will lose money.

Bitcoin trading on Forex and CFD platforms is very different from trading on the stock exchange; most people do.

Trading cryptos on a forex or CFD platform is very different from trading them on an exchange:

  • People don’t trade digital cryptos in any of the trades they make.
  • There is no need to own a wallet for cryptocurrency.
  • With the help of the forex/CFD provider, you trade cryptos under the terms that were agreed upon.
  • Crypto CFD trading is a way to make money with a lot of money at once.
  • There are a lot of crypto exchanges where you can only trade crypto pairs with other cryptos, like BTC/USD or LTC/USD. At Bitfinex, you can trade crypto-fiat pairs like BTC/USD or LTC/USD.
  • You can only deposit and withdraw money in fiat currencies.

How to Trade Cryptocurrency CFDs

If you’ve ever traded forex or CFDs on one of the most popular MT4 platforms, you should be able to understand how to trade cryptocurrency CFDs with ease. They are usually shown on the platform the same way as other CFDs. The WebTrader from Plus500 is a good example of how this works:

When you trade a cryptocurrency on a CFD platform like Plus500, you need technical and fundamental analysis. You also need to have a good set of risk management tools.

This is important because cryptocurrency pairs are some of the most volatile things on any CFD trading platform. If you want to make money, you should invest in stocks and bonds, which move in tens and hundreds of dollars each day, instead of currencies like the dollar or crude oil, which only move in one or two dollars each day.

Controlling your risk while using technical and fundamental strategies can make a big difference in your chances of making money or losing money.

People who read news stories are very important to the price movements of major cryptocurrency CFDs. Cryptocurrency news can be found on big cryptocurrency websites or social media pages.

People make cryptocurrency news all the time. There are two sides to the story. There is no economic calendar that you can use in the first place. This means that you can’t know when market-moving news will come out. As a second example: News about adoption, clear statements from regulators, and being listed on a major exchange are all things that move the market.

Pay attention to the Price Correlations in your area.

You should also pay attention to how things are linked. For example, Bitcoin Cash ABC and Litecoin were both made with the same structure as Bitcoin. They are copies of Bitcoin (also referred to as altcoins). On the other hand, Bitcoin tends to follow Litecoin prices wherever they go.


People who want to trade cryptocurrencies on forex or CFD platforms need to know about these things first. Pay attention to the news. Any news about cyberattacks or changes in regulations will affect how cryptos move. News about hard forks will also have an effect. Similarly-priced cryptos like LTC and BTC should also be on your radar because they tend to move together at a price. Remember that Plus500 lets you trade CFDs on the most popular crypto-assets.

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