Getting Started in Cryptocurrency Trading

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Are you new to cryptocurrencies? Still wandering around looking for ways to get involved in the crypto market?

You are in luck 🍀. This article is perfect for you as we will be answering the following questions that most newbie traders have:

  • What is Cryptocurrency?
  • Stand-out Features of Cryptos
  • Is Crypto for me?
  • Ways to Participate in the Crypto Market
  • Benefits of Crypto CFDs
  • Trade Crypto CFDs

Sign Up and Start Trading 60+ Crypto CFDs, available 24/7 commission-free

What is Cryptocurrency? 

In its simplest form, cryptocurrency is a digital currency that serves as an alternative payment method using an encryption technology called cryptography and runs on blockchain technology, a decentralized digital ledger that is publicly available. 

Quick Facts on Cryptocurrency

The first cryptocurrency ever to be introduced to the public is Bitcoin ₿, and it is still by far the most well-known and actively traded cryptocurrency in the world. 

To use cryptocurrencies, we will need a crypto wallet. These wallets allow us to interact with the blockchain and store the keys to the crypto assets we own. However, we can trade cryptos without a wallet, and we will explain it in the sections to come. 

Stand-out Features of Cryptocurrency

  • Means of Transferring Value
    Allows for worldwide online transfer while eliminating the need for middlemen like banks or PSP. Not to mention it is almost instantaneous and works around the clock for a minimal fee.
  • Decentralised
    Nearly all cryptos are neither issued nor controlled by any central authority. Greater and more equitable service can be accomplished by decentralizing an application’s (or in this case, the Cryptos’) resource management and access.
  • Portable
    Regardless of your location, the economic conditions, or whatever happens to the global financial system, your crypto assets are always at your disposal because they are not linked to any other entity and you are the ultimate owner. 
  • Secure
    As mentioned, they run on blockchains, meaning they are managed by literally everyone who is participating in the network. It is difficult, if not impossible to alter the information on the ledger due to the nature of how blockchains operate.
  • Private
    Users are not required to disclose unnecessary information to the beneficiaries when making payments. This protects your financial information and reduces the risk of your personal data being compromised by prying eyes.

Is Cryptocurrency For Me?

The answer depends on your objectives. What are you using cryptocurrencies for?

  • Is it an investment?
  • Are you just speculating on Crypto’s prices?
  • Do you use it as a mode of transferring value?
  • And many more use cases

While you can do many things with cryptocurrencies,  most people are using them primarily for speculation purposes, much like retail traders do with currencies, gold, stocks, commodities, etc.

> Explore our product offerings here

Ways to Participate

Cryptocurrencies’ derivatives come in many forms, catering to the needs of different market participants.  We will focus on CFDs as it is one of the most popular products for retail traders and investors and is how we offer Cryptocurrency Trading at Alchemy Markets. 

  • Spot
  • CFDs
  • Futures
  • Options
  • Swaps
  • Perpetual Contracts

Contract For Difference, more commonly known as CFD allows traders to capitalize on the market movements of Cryptos without actually owning them.

Alchemy Markets offer more than 60 Crypto CFDs including but not limited to Bitcoin CFD, Ethereum CFD, and Litecoin CFD.

Trade Crypto CFDs commission-free at Alchemy Markets

Benefits of Crypto CFDs

> Let’s dive into the benefits of trading cryptos CFDs at Alchemy Markets


Forget about opening an account on an exchange, buying and selling unleveraged Cryptos, and storing the assets in your crypto wallets. You can trade Crypto CFDs alongside more than 1000 instruments including FX, stocks, commodities, etc. on a single MT4/MT5 account with Alchemy Markets.

Deeper Liquidity

In layman’s terms, liquidity refers to how easily one can get in and out of a trade. Deep liquidity is essential for you to get the best pricing and trade execution. Compared to crypto exchanges where liquidity is relatively dispersed, Alchemy Markets aggregates liquidity from multiple sources and ensure more than sufficient liquidity for our traders.

Go Long or Short

In spot trading, investors purchase and hold the cryptos in anticipation that their value would increase. What can you do if your analysis indicates that the price of a particular cryptocurrency may fall? This is where crypto CFDs shine. With CFDs, you can go long or short without owning the assets. If the price does decline, you would be able to profit from your trade idea.

Hedging Risk

Crypto CFDs enable short-selling. Investors can use crypto CFDs to hedge and mitigate their short-term crypto exposure. For example, John owns 2 Bitcoin, and an impending news event would cause significant volatility in the crypto market. John can place a sell position on a Bitcoin CFD and cover it later when the market calms down to reduce the downside risk. If the price of Bitcoin does fall, the profit made from the short position will make up for the loss in value of his Bitcoin holdings. 

Leveraged Products

Our Crypto CFDs can be traded on margin, with leverage as high as 10:1. Margin trading enables you to trade larger sizes by putting up just a small portion of the total value of the trade. A gentle reminder that while leverage magnifies the profit potential, losses could be amplified as well.

Click here to learn more about how Margin Trading works 

Trade Crypto CFDs with Alchemy Markets

24/7 Availability
✓  Crypto Wallet Not Required
✓  Leverage Up To 10:1
✓  Greater Liquidity
✓  Go Short or Long
✓  No Gas Fees
✓  Hedge Short-term Risks
✓  Quick Sign Up 


Ru Yi 
Financial Market Analyst

The only place where you get to trade more than 1000 instruments including Stocks, FX, Cryptos, and many more with ultra-low spreads and institutional-grade liquidity. 

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