The word ‘’cryptocurrency’’ has been going around for a while now. Multiple news channels have covered it, a lot of users online have been crazy about it, so it is highly likely you are somewhat familiar with it by now. It’s important to know that anybody could participate, and you should definitely be one of those who take advantage. In this article, you will find the basics of cryptocurrency. We will talk about what it means, how it operates, and how to get started using Deriv.com.
First of all, let’s analyze what blockchain is. It is a technology that can store financial information, for example, and form a public database. The data is called blocks and the database – a chain. This is where the term ‘’blockchain’’ comes from. So far, so good.
What is interesting here is that the technology activates the transactions and the record system at the same time and, in this way, creates a very secure environment.
Cryptocurrency: what is it?
For something to be referred to as currency, it should work as a means of exchange, which a group could use. For instance, the USD is used mostly in the USA.
Similarly, Bitcoin, Litecoin, and Ethereum, which are all popular cryptocurrencies, have gained recognition and are now used worldwide for exchange.
There are many advantages to using cryptocurrencies. Some of them are that they are now widespread, completely anonymous (which helps with privacy issues), and peer-to-peer. The latter means that you don’t need to involve a bank, for example, to make a transaction. They are also not regulated by the government.
Cryptocurrency: how does it operate?
The usage of a platform like Deriv.com, makes the process similar to trading forex, stocks, etc. Your goal is only to predict the fluctuations in the value of the cryptocurrency correctly. If you guess right, you earn the profit. There is no need to own a crypto asset to get started.
Imagine that you guess that the price of the base currency in a specific pair will increase. You can then make a buy trade and, after that, receive a payout if you’ve guessed right. And vice versa – make a sell trade when you predict the price will go down.
In a few words, you can profit by guessing the fluctuations in a crypto asset without actually purchasing the asset.
Find out more about how to do crypto trading on Deric.com
In case you are a beginner, you should first create an account on Deriv.com, using Google, your email, or Facebook. Once this is done, follow those steps to set up your MT5 account and begin crypto trading:
Go and click on the tab that says ‘DTrader’ tab. Then select from the drop-down menu DMT5.
Choose ‘Real account’ if you feel ready to start trading with real money or select a ‘Demo account’ for exercise with virtual money.
To now make a Financial account, go and click on the button that says create an account and enter the password you’ve chosen.
Under the Financial account, you will be able to Trade on the web terminal option.
At this point, you are in your MT5 web terminal.
Now is the time to choose a crypto pair to your wish list.
When this is done, perform a right-click on it and choose ‘New Order.’
After that, you should choose between Market execution or Pending order.
If Market execution is selected, then you will need to set the size of your position, the stop-loss, and take-profit. After this is done, go to Sell by Market or Buy by Market to activate the scenario.
If Pending order is selected, you will need to set the type of order you would like to execute, the size of your position, the price for placement of the order, and the stop-loss and take-profit. After that, press on Place.
Once you’ve finished with that, the order will be shown on your dashboard.