Don’t waste your time – keep track of how NFP affects the US dollar!
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Personal areaOn August 9, 2021, FBS went full on cryptocurrencies. Before you could only trade BTC, ETH, LTC vs USD in FBS Trader. From this moment everybody can open his or her cryptocurrency account, fill it with Tether (TET) and earn on the most innovative and volatile market ever! There are various instrument to meet and even exceed your expectations! In this article we will cover the basics of cryptocurrency trading with FBS, touching on pair selection, news interpretation, and risk management. Buckle up, because we are about to take off!
You need to open your cryptocurrency account and deposit some money, that will be exchanged into tether. Or you can open a demo account if you want to practice before entering the market.
Pretty much everything, plus a little more:
You can trade “classical” cryptocurrency pairs like BTC/USD, ETH/USD, BCH/USD, and many others, USD and TET are always as much close to a 1:1 ratio as possible, and the conversion happens automatically, so you only need to choose the token you want to trade.
For example, let's look at BTC/USD pair:
If you think that Bitcoin is about to dump, you just need to sell it from your MT5 or FBS Trading Platform application. Usually, the price of bitcoin is affected by news. For instance, when it was accepted as a payment method for Tesla cars, the price skyrocketed from $38000 to $47000 in one day!
You can choose from dozens of pairs. The most popular cryptocurrencies with the most popular currencies, like BCH/EUR (Bitcoin cash), BNB/JPY (Binance coin), ETH/GBP (Ethereum). For example, you checked our economic calendar or read our article about prospects of the Swiss economy and decided that steady CHF is about to fall against XRP (Ripple), which didn’t suffer from the new Infrastructure Bill because it is not working on Proof-of-Work or Proof-of-Stake consensus protocols. You can open a long position in XRP/CHF pair.
This is more complex than just coins to USD trading because you need to understand the prospects for both coins and their correlation with each other. For example, Ethereum had a significant update on August 5, 2021. This update brings the deflation model to Ethereum’s blockchain monetary policy. From now on, every transaction will burn a certain part of ETH as a fee (before that all fees inside the network were separated between validators – users, who confirm transactions). This is extremely bullish news due to the slowly declining supply of the coin.
At the same time, Binance (cryptocurrency exchange) faces a probe by U.S. Money-Laundering and Tax Sleuths. The risks of Binance block in several counties, including the US and UK, can affect badly on the price of Binance coin (BNB). Moreover, the BNB blockchain itself isn’t decentralized at all. It is stored and controlled by the board of directors. Considering the facts given, you can open a short on BNB/ETH pair and catch a beautiful massive bearish movement.
Bitcoin is often called “digital gold” because its maximum amount is limited to 21 million bitcoins total. The reward for mining the bitcoin is halved every 4 years. This process is called “halving” and the creator of bitcoin developed it with a purpose to control inflation of the coin. But what if you want to trade the BTC/XAU pair?
Let’s analyze the news and make a decision: as long as August 6, 2021, the United States’ Bureau of Labor Statistics shared lots of data, including NFP and unemployment rate. At the same time, Bitcoin was on the bullish rally after the “double bottom” pattern has emerged on the chart. The most logical decision was to open a long in BTC/XAU pair and grab your profit several days later.
For the conclusion, you need to keep in mind, that cryptocurrency trading never ends, even on weekends. Make sure you calculated everything with our risk calculator and placed your stop loss and take profit orders. Cryptocurrency is an extremely volatile asset class, but major moves can bring you impressive results.
Don't know how to trade crypto? Here are some simple steps.
