Trading Cryptocurrencies on Forex

Agenda

The Forex market has been around for many years and traders got used to its rules and specifics. However, today there are even more trading opportunities that you can take advantage of thanks to cryptocurrencies that are getting more and more popular. Some clever people understood how it is possible to combine these two markets, which can be pretty profitable for traders on condition that they have sufficient knowledge, stick to the best Forex trend indicators, find effective Forex strategies that work, as well as deal with an honest Forex trader and use a reliable trading platform. 

Traders can choose to trade cryptocurrencies in different ways, for instance, on Forex. If you want to find out more about this topic, you should read this article. To demonstrate you some helpful examples, we will use the information published on the Maxi Trade official site becauseit isa reputable company in the Forex trading world that has everything for a profitable trade.

Forex Review

Let’s start investigating the topic from the very basics so that even beginners to Forex and cryptocurrency could get the right idea of what it is all about. 

Forex used for trading different currencies and determining the exchange rate. The market includes all processes related to trading different currencies at determined prices. Currently, it is the biggest and most liquid market, which is one of the reasons why it is so popular. 

All trades involve two different currencies because it is all about predicting the changes in the value of the 1st currency against the 2nd currency. The euro/dollar pair is the most popular, where euro is the 1st currency and dollar is the 2nd currency. The prices for the pair also known as quotes mean the cost of the 1st currency determined using another currency (for instance, cost of one euro in dollars). There will always be two prices because the 1st one indicated how much it will cost you to buy a pair and the 2nd one is how much you will have to pay to sell a pair. The gap between these two prices is called the spread. Whatever you do — sell or buy — you sell/buy the 1st currency in the pair. 

Starting Trading on Forex

It is important to note that not all people can succeed in Forex trading because it requires a range of traits and skills, such as analytical thinking, ability to fight stress, patience, and more. If you have problems, it does not mean that something is wrong with Forex. Just think about it — why Forex is a scam if you cannot make a profit while other people can? If you really hard working and are going to learn the necessary information, you are on the right path to your success.  

Just a few decades ago it looked so complicated to become a Forex trader, but today everyone can be one. Although it is possible to find a scam, there are plenty of reliable brokers like Maxitrade that you can deal with today. There is a range of convenient trading platforms that you can use to trade currencies and there are plenty of helpful tools and materials that you can use, for instance, indicators, strategies, signals, and more. 

Also, it is not a problem to find online courses to gain sufficient knowledge which allows you to study according to your own schedule. You will find out how to forecast changes on the market, how to avoid a scam, to how to minimize risks, and more. For instance, on the Maxi Trade site, you can find different helpful webinars under the “Education” section. Traders who are interested in making profits on a stock exchange or on other markets can check out Maxitrade stock exchange and other options are available for them. 

About Cryptocurrencies

Cryptocurrencies are digital currencies which significantly increased in popularity in 2017, when the price of Bitcoin, the first cryptocurrency, reached nearly $20,000. Today, it is widely used for making payments, exchanging traditional (fiat) currencies, investments, and more. Currently, the number of different cryptocurrencies is increasing day by day, but not many of them are used for trading globally. 

The following are some advantages of cryptocurrencies that you should know about:

  • Lower fees. It is much cheaper than using credit cards for players and if there is no exchange, you will not have to pay charges;
  • Fraud reduction. No one can reverse cryptocurrency payment once it is sent. Unlikely credit card payments, where the receiver of funds is at risk of chargebacks, the use of cryptocurrencies eliminates such problems;
  • Immediate payments. Nobody likes waiting for money to arrive, and thanks to cryptocurrencies, you will enjoy instant transfers;
  • No restrictions. You can use cryptocurrency internationally without any problems, thanks to which it is much easier to make payments worldwide;

There are different ways to make a profit using cryptocurrency, and one of them is trading it on Forex. 

Is It Possible to Trade Cryptocurrency on Forex?

The very first thing that you should understand is that the Forex and the crypto markets are not the same thing and there are a few unique aspects of each of them. Cryptocurrencies are different than traditional currencies like the American dollar. The currencies available for trade on Forex are backed by a government, while cryptos are not because they are backed by a P2P authentication process.

However, some Forex brokers like Maxi Trade make it possible to trade cryptocurrency on Forex. It is also recommended to use a special platform for trading because it allows you to get access to various helpful materials and tools, such as Forex trading signals, real time Forex quotes, Forex trading indicators, and more. 

All you have to do is the following:

  • Find a reliable broker;
  • Open an account;
  • Deposit;
  • Choose a pair to trade;
  • Trade!

Of course, each of these steps requires lots of thinking, but if you have a desire to become a successful trader, it will not be a problem for you. 

There is no need to risk losing your money right away as you can open a demo account and practice trading cryptos on Forex as long as you want. 

Important Things to Know About Trading Cryptocurrencies on Forex 

Trading a pair of BTC/USD is technically no different from trading conventional currency pairs. So, you will do all the same things that you would do for trading EUR/USD, such as buying/selling a pair, setting stop loss and take profit orders, etc.

You can also use the same Forex trading strategies, live Forex signals, best indicators for Forex, and other tools and techniques. 

However, there are a few specific features that you should keep in mind if you wish to trade cryptocurrencies on Forex:

  • Cryptocurrencies are 24/7/365 so there are no breaks like with fiat currencies;
  • News make a longer impact on the price;
  • Since there is usually a large spread for a bitcoin/dollar pair, using the scalping strategy is not recommended;
  • The cryptocurrency market is highly volatile, which means that even unverified information that appears on the Internet can dramatically impact on the price. 

Digital Currencies That Can Be Used in Your Trade 

Today, there are many different coins on the cryptocurrency market, but not all of them are actively used in trading. The following two cryptocurrencies are the most popular options:

  • Bitcoin (BTC) has been around since 2009 and today it is the most popular cryptocurrency in the market. Bitcoin’s volatility is quite high, which makes it a good trading currency for short-term transactions;
  • Ethereum (ETH) is another popular cryptocurrency, which is also often used for investment.

In addition, the trading cryptos on Forex can be carried out with popular coins, such as Bitcoin Cash, Dash, Monero, Ripple, and others.

Choosing the Right Forex Broker

You can be an experienced, knowledgeable, and clever person, but you can still lose your money if you deal with a scam. There are many things to pay your attention to when looking for a broker to ensure that you will not encounter unpleasant surprises. 

Apps & Software

You want to be able to access the trading platform at any time you want because your profit depends on this. Sometimes, it is just a matter of a few seconds, and therefore, you want to have a reliable app that you can install on your mobile device. This is how you can have a cup of coffee without worries. There are different applications that you can find on the market today, but not all of them are good enough. One of our suggestions is checking out the app that you can easily find on the Maxitrade official site.

Security

You want to check what security measures are used by your broker to protect you against hackers. Go through the site of a broker and reviews to find their Terms and Conditions, Privacy Policy, and other important documents. 

Fees

Each broker has different rates and fees. Particularly, you should pay your attention to a marginal difference in rates. The following are three main fees that you can meet:

  • Exchange fees mean how much you will be charged for using their software. your choice of currency/ cryptocurrency also impacts on the rate;
  • Trade fees indicate how much you will have to pay for trading currencies on the exchange;
  • Deposit/withdrawal fees are those that you will be charged for depositing and withdrawing your funds to/from the broker. Usually, it is cheaper to deposit your money. 

Reputation

You want to know that you are dealing with an honest Forex broker, but how can you know it? Thanks to the Internet, it is not a problem, as you can go through different customer reviews and check what people think. However, you should not believe blindly everything that you read because it is a usual situation when people complain about a broker if they have lost their money even though this happened due to their own fault. We also have found negative Maxitrade customer reviews so we started to ask “Is Maxitrade scam?” After going through the complaints we understood, that the main trouble was lack of experience in trading. 

Benefits of Picking Bitcoin to Trade on Forex

If you are beginners, it is recommended to start trading with popular cryptocurrencies and the best choice is, of course, Bitcoin. The following are some of the benefits of using this coin:

  • Decentralized Valuation is the major advantage of trading this coin on Forex. There is no central bank that can change the coins valuations. Thanks to this, the cryptocurrency rates are not affected by geopolitical influence and macroeconomic factors, such as interest rates;
  • High Leverage can reach up to 1:1000. If you are an experienced trader, you can use it in your favor;
  • No transaction fees are applied as there are no banks or other financial services involved. Usually, even global transfers are made for free, which contributes to your trade profitability;
  • Low deposit amount allows virtually everyone to participate in trade. It can be as little as $25 to start selling or buying the cryptocurrency. Also, you can find exciting promotional offers. For instance, if you make a deposit with Maxi Trade, you will get a 100% match bonus on your deposit;
  • Low trading fees are usually offered for trading bitcoins;
  • Security is a well-known advantage of Bitcoin. You will not have to provide your bank account or other financial details for making deposits or withdrawing your money;
  • There are no boundaries when it comes to sending transactions and you can trade all over the world. 

Forex Trading Strategies for Beginners

Forex trading is about decreasing losses and increasing profits, which can be achieved by using different Forex strategies. There are lots of them and it is up to a trader what to choose. It is recommended to get Forex trading strategies for beginners PDF so that you could familiarize yourself with all the options available today at any time you want. There are lots of different options so it may get overwhelming to learn them all, so choose the simplest strategies first. Once you gain more experience, you can download more complex Forex trading strategies PDF.

Below you will find info regarding the best Forex strategies to apply to trade cryptocurrencies on Forex.

Forex Hedging Strategies

Hedging is used in different markets, including Forex. It is sort of the insurance that helps a trader to minimize one’s losses. Particularly, the hedging strategies are designed to minimize the risks when the price goes against your trade. You cannot use a Forex hedging strategy if you deal with a US Forex broker because this technique has been banned since 2009. 

Simple Forex Hedging

It is not easy to find brokers allowing traders to use hedges, but it is possible. This means that you can open two opposite trades at the same time, for instance, buy bitcoin/dollar and then sell bitcoin/dollar right away. In this case, you will not get net profit until both your trades are opened, but you can earn more money without facing additional risk. While you can just close a losing trade and open a profitable one, hedging makes sense sometimes because the benefit of this technique is keeping trading and getting profit from a 2nd trade. 

Complex Hedging

There are lots of methods that can be applied for this strategy, but, usually, companies do not allow using this technique for different reasons. In this case, you can open an account with another company to have this option. 

Multiple Currency Pairs

It is possible to use another currency pair. For instance, if you buy euro/dollar, you can sell dollar/Swiss franc. Remember that the main reason to use this method is to limit risk, but this strategy is suitable only for experienced traders. 

Forex Swing Trading Strategies

Such trading lasts more than a day, but not more than several weeks. In this case, a trader would pay attention to chart patterns created for several days because one needs to see changes typically occurred from a day trade.

A swing trader may use both technical/fundamental analysis. Volatility here makes a difference because volatile markets are the best for traders using this technique as the volatility significantly impacts on the number of price moves within a short period of time. 

Such trading is great for trading cryptocurrency on Forex for several reasons, such as:

  • There is good volatility to get right price moves;
  • You benefit from great liquidity;
  • You can have it all in a short time frame.

Forex Day Trading Strategies

They are used by traders throughout the day and all the trades are closed within several hours. Since there are not many choices that you can have during a day, such traders usually use quite risky trading techniques.

Forex day trading strategies require lots of patience and traders have to stick to the platform not to miss their chances. It is great that there are trading apps that you can use on your mobile device at any time.  Below you will find some day trading strategies that you can use.

Forex Scalping Strategies

Scalping aims at achieving many small profits based on small price changes. Although this strategy is pretty exciting, it is one of the riskiest Forex daily trading strategies. In order to minimize losses, a trader should close a losing trade quickly, which may be difficult for one because it may be tempting to wait until the price goes in the right direction. 

If you want to use this method, you should look for those three aspects:

  • Instruments that come with high volatility;
  • Instruments that have great liquidity;
  • There is fast execution speed. 

Pullback Trad

A pullback is a short-term reversal of the current trend. It can be as following:

  • A price goes up and then goes down for some time just to increase again and pass its previous higher high;
  • A price goes down and then goes up for some time to fall even lower its prior low level.

So, your goal is to catch these reversal points to make a profit.

Momentum Trading

This is a pretty simple strategy. Using this technique, traders choose which trade to open based on the strength of price changes. This means that traders believe that the price that is currently moving in a certain direction will continue doing so until the trend loses its strength. 

So now, using some of these Forex strategies revealed, you can decide which one suits you the best. It might take you some time to find Forex trading strategies that work, but you will appreciate the results. 

Forex Quotes

One of the notions that you should have an understanding of is a quote. It is the price of the 1st currency indicated based on the value of the 2nd currency. Forex trading quotes always related to a pair of currencies because a trader buys one by selling another. Brokers usually quote two prices for each pair and get a gap between them (spread). Spreads are usually less for popular pairs thanks to their high volume and great liquidity. 

So, how to read Forex quotes? When trading on the Forex market, you will see different terms, such as the bid and ask prices. The first one is the price to sell your instrument a pair while the second one is the price to buy the instrument. 

The 1st currency is the base currency and the 2nd one is the quote currency. There are lots of quotes Forex markets on the Internet where you can check live Forex quotes that are published for informative purposes. 

Forex Signals

What are Forex signals? Forex trade signals are suggestions for hitting the market at a certain price and time. Such signals can be generated either by a live analyst or a robot supplied by a Forex signals service. Since accurate Forex signals are crucial to catch on time, they are delivered in different ways, such as email, sites, SMS, tweets, and other instant methods.

Types of Forex Signals Services

There are various Forex signals services that can be used, including the following:

  • Free Forex trading signals;
  • Traders can buy Forex signals from a single service provider;
  • The best Forex signals collected from several sources;
  • There are also various honest Forex signals available within a trading platform. 

Of course, getting Forex free signals looks tempting, but you want to get high-quality, profitable Forex signals. However, it is possible to pick the best free Forex signal providers who will supply you with the right information at the right time. 

To find reliable Forex signals providers, you should go through Forex signals reviews because this will allow understanding how effective they really are. You should consider finding and downloading the best Forex signals app to hit the market immediately wherever you are. 

In fact, one of the benefits of Maxi Trade is that they provide free live Forex signals for the users of their trading platform. We have mentioned already that using software or apps is very convenient and allows enjoying additional tools, informative materials and different helpful techniques for analysis of the current situation on the market. 

Finding a Signal Service

Since you want to find high-quality binary options Forex signals, you should pay your attention to the several aspects. This is applied to paid services, but some of the recommendations are suitable for finding a Forex signals free service provider:

  • Success rate. It is usually expressed as a percentage and it means how often this service is correct;
  • Number and frequency of signals. It really depends on your strategy because you do not want to miss profitable daily Forex signals;
  • Supporting evidence. It is not enough just to get a signal but you should also know what it is based on. While profit Forex signals are extremely helpful, there is still some risk associated with opening a trade, and it is your responsibility to check if a signal worth your attention;
  • Price. It would be great if you could find free Forex signals that provide traders with the right information, but paid services usually come with more opportunities. However, you want to check if the price is reasonable;  
  • Free Trial. If you are going to pay money, you want to know for what exactly; therefore, it is recommended to find a service provider with a free-trial version. Obviously, you should not bother about that if you want to opt for a free Forex signals live service providers;
  • Additional Services. Some providers have on offer more than just Forex signals live services but also something else that you can benefit from, so you should pay your attention to that;  
  • No pressure. If a certain service provider wants you to sign up with a certain trading platform, it may be a scam, so stay away.

Even if you find a perfect Forex signals review, you should go through several publications on the Internet in order to check what other traders think of a certain product before you start using it. 

Forex Indicators

While it is essential to go through different Forex forecast sources, listen to the signals, use proper strategies, and generally, keep your hands on the pulse, it is also essential to learn how to use Forex indicators as well. 

They are used for effective technical analysis and quick determination of the optimal solutions. The indicators are determined based on different factors, such as the price and volume of a chosen pair. Thanks to Forex indicators, a trader can make right decisions regarding hitting and exiting the market.

There are lots of the best Forex indicators to use in different popular trading platforms, such as MT4, which is, in fact, one of the most popular trading software products offered today and you can find it on the site of Maxi Trade.

A range of Forex MT4 indicators is really large from Forex volume indicators to Forex scalping indicators, and you can choose those that are better suit your trading strategy. All you need to do is not install the trading platform and search for best Forex indicators free download. Once you find what you need, download the software product to use on your trading platform. 

However, before you get free Forex indicators, it is recommended to check reviews on different Forex indicators MT4, which will help in making the right choice depending on what you need. If you are overwhelmed with all those tools, you can check out Naked Forex: High-Probability Techniques for Trading Without Indicators by A. Nekritin and W. Peters, which is very popular today. It reveals how it is possible to avoid using complicated tools of technical analysis.  

Anyway, the following are some of the most popular tools that each trader should learn:

Oscillators

Those are several indicators that were developed to make it easy to identify a high or low value in the course of trading. They are widely used thanks to their ability to indicate a possible trend change that has not started yet. This tool oscillates between two figures to give an idea of a trend’s strength. Usually, they show if a certain instrument is overbought or oversold.

Moving Averages

These are tools designed for understanding the direction of a trend. The moving average smooths out price data by creating an average price that is constantly updated. It is possible to take the average for different periods of time, such as 20 minutes, 10 days, 30 weeks, etc. there are various types of moving averages that you can use in your work, such as Smoothed Moving Averaged, EMA, and others.

Momentum Indicators

Such indicators use different formulas to measure price changes. For instance, RSI compares the average price change of different periods. In simple words, such indicators give you an idea of the price direction and how quickly it changes. 

Larry Williams Indicators

As you can figure it out from the name, these have been developed by Larry Williams. There are several indicators from this group that you can use in your trade depending on what you are looking for. Some of them are Williams Ultimate Oscillator, Blast Off Indicator, and others. 

Of course, in order to get a better understanding of them, you should see how they work on a trading platform. 

Maxitrade Review

There are many Forex brokers to register with and start trading cryptocurrency, and it is up to you what to choose. Here, you will find a brief Maxi Trade review, one of the cryptocurrency brokers that you can consider. 

Initial information about the Company 

Maxi Trade is an online offshore Forex and cryptocurrency broker. It was founded by Market Solutions Ltd. more than 10 years ago, and today, it is a stable, profitable, and popular company. It is one of those brokers who have managed to design comfortable trading environments for people with different levels of experience. 

On Maxitrade site, you will find plenty of underlying assets in the following categories:

  • Market Indices;
  • Forex/Currency;
  • Commodities;
  • Individual Maxi Trade stock and Cryptocurrency. 

To start trading, you must register and make a deposit of at least $250. While leverage on most currency pairs reaches 200:1, it is 50:1 for cryptos.

Is Maxi Trade scam? Some people are concerned about the company’s registration in the offshore zone, but according to Scam advisor, its safety score is 93%.

Maxitrade Advantages

There is a range of advantages that make the company highly popular, including the following:

  • MT4 platform. Maxitrade offers traders to use MetaTrader 4 platform, which is well-known for convenience and reliability. There are plenty of helpful features and options that can be used for fundamental and technical analysis. Also, there are very helpful Expert Advisors that will give you the right signals;
  • Great trading conditions. The leverage of Maxitrade is good for most trading styles and the fees of trading are very low. For instance, the spread on the EUR/USD pair is around 0.2 pips. There are no additional commissions applied;
  • Lots of instruments for trade. There are plenty of instruments that you can choose from, including currency pairs, CFDs, and cryptocurrencies, such as Bitcoin, Litecoin, Monero, Ethereum, and many more.

Maxi Trade Customer Reviews

Is Maxitrade fraud? I don’t think so. I myself found their rates competitive. The app is very convenient and it comes with all the necessary tools for effective trading. If you know cheaper alternatives, I would like to hear your opinion on that. I’ve been using this app for several months and before that, I had traded right on Maxi Trade site, which also was very convenient but since I am often on the road, I needed this app. If you do not think that representatives of Maxitrade lie, you should contact them back to provide with more information. No offense, but maybe you are doing something wrong. You do not want to miss your chance to trade on a really good app, so just write them to figure everything out. 

That is a sad story, but you should have figured out everything out before you made a deposit with them. I’m a trader myself and I make all the decisions regarding trading on my own. Sometimes, I lose money, but there is always some risk. As for education, there are awesome webinars that you can find on their websites and I’ve watched a couple of them. I don’t think that this company is a scam or Maxi Trade fraud because I’ve been using their platform for several months and made a good profit. I truly wish you that your problem to be resolved. 

When I see such comments stating that Maxi Trade cheat, I usually do not findenough details.I’ve dealt with this broker for a couple of months and everything worked well for me.However, when you see something like that, you get nervous because you start fearing of being trapped by a scam. I’ve found negative commentson every Forex brokerbecause it is very difficult for people toadmitthat it was their fault that they lost their money.It does not mean that all brokers are honest, and I myselflost $1,500 when I was an inexperienced beginner and chose an unreliable broker, but since then, I’ve been very careful. So, I wish you best of luck and I hope that you will not stop trading because of this issue.

That is lots of money! Why did you deposit that much money without checking how everything works? It is so easy to find a scam promising fantastic conditions, but it is important to be very careful. I never deposit that much money unless I am sure that I am dealing with a reliable broker with a good reputation. Let’s face the truth, this is an offshore company but this does not mean that Maxitrade cheat. However, they are not regulated so I do not place in deposit more than $3,000. I tested them carefully before I set a real-money account with them. I was attracted by their trading platform and app, great conditions, and exciting welcome bonus. However, I did not increase by deposit until withdrawing several times from my account without any problems. I think that it is a horrible situation that you are going through, and I hope that everything will be sorted out in the nearest future. 

I myself do not trust my money to other traders because I found it entertaining and secure to trade myself. I retired a couple of years ago and decided to learn Forex trading. Although I am a history teacher, I found it quite interesting, and today, I believe, I can call myself a successful trader. I am a very careful person and before hitting the market, I had tested different techniques and strategies on my demo account. I do not think that this company is a scam as I have never found that the managers of Maxi Trade lie. All the information about Maxi Trade is right there on their site, and they do not hide the fact of being an offshore broker. I guess this saves them lots of money so they can offer good conditions for us. Also, you can call them or send them an email with your questions, and they always reply in a timely manner. However, maybe I am just lucky not to have problems with them. 

I’ve read a few comments related to false signals that you get from Maxi Trade, but, people, trading is hard work, and while these robots are very helpful, you should also think. How come can you blindly listen to the signals when you know how many factors impact on the price? I’ve withdrawn my funds from the company several times with no major problems. I think that most of those complaints are posted by Maxi Trade competitors. This does not mean that no issues can be encountered and I myself had to contact them once due to delay with withdrawals and I found their representatives polite and prompt. I just wish all those people posting negative comments provided more information on their problems. Those people who complain about losing thousands of dollars, have you ever heard of stop loss? I mean before you post a negative review, just make sure that you are a good trader and your losses are not due to your fault! Wow! That’s a long comment I’ve written. Sorry if you got overwhelmed, but I hope that my opinion will be helpful for you. If I ever have problems with Maxi Trade, I will let you know right away, but so far, I’m just happy with the service and there is nothing to complain about. In fact, I’ve deposited over $2,000 on my account.