Cryptocurrency is a digital currency protected by cryptographic technologies and does not have a physical analogue. Thus, the cryptocurrency exists only in virtual space. Its main principles are anonymity for all participants, protection against fraud and independence from controlling organisations. You can pay for goods and services with it. At the moment, there are more than 1000 different cryptocurrencies.
Cryptocurrency is a financial instrument, like the Dollar, Euro or Gold. Therefore, its price is formed by the ratio of supply and demand. In addition, the rate is affected by economic and political factors that reduce confidence in traditional currencies (the Dollar, Euro, etc.), for example, devaluation of national currencies. Also significant impact on the rate is provided by news about important technical updates in the software mechanisms of the cryptocurrency, which may lead to an increased demand for these assets by investors.
Cryptocurrency can be called an improved analogue of ordinary money – it is a universal commodity, which is a measure of value when buying and selling other goods. One of the key advantages is the absence of inflation, since the amount of one or another cryptocurrency is known and limited, in advance. Further – anonymity, you can only track transactions and the number of sent coins without identifying the owners of the wallets. Another advantage is decentralisation. No one can forcibly restrict the spread of currency, as it is controlled by users around the world.
Cryptocurrencies appear in the process of mining by users’ computers as a reward for solving those complex mathematical problems. At the heart of all cryptocurrency, is the block system, which is a decentralised system. All transactions pass through the miners: their computers must verify the authenticity of the transfer using a secret key and information about all new transactions. If the operation is confirmed,the miner receives a reward, for the formation of the block, in the form of a certain amount of cryptocurrency. In the future, cryptocurrencies will be placed on exchanges, in exchange services, where they can be bought, sold and exchanged for other cryptocurrencies or “fiat” currency (Euro, Dollar, etc.).
Yes, you can. At the moment, CFDs for Bitcoin, Litecoin and Ethereum are available for trading. A CFD instrument is a contract for a price difference without physical possession of the asset. Buying or selling CFDs for any asset, a trader makes a profit on the changing of its value. For example, we bought Bitcoin at $ 8,000, when the price rose to $ 9,000, we closed the trade and made a profit of $ 1,000. Or we sold Ethereum at $ 900, when the price dropped to $ 700, we closed the trade and got $ 200 profit.
For the year 2017, the enormous demand for cryptocurrencies has caused the unprecedented volatility of these instruments. In turn, this led to an increase in the volatility of most cryptocurrencies (in particular Bitcoin, Litecoin and Ethereum), giving traders much greater opportunities for successful speculative trading in the markets than those that are in the classic forex market.
The distinctive conditions are the fixed leverage of 1: 3 (regardless of the type of account) and a commission of 1% for the opening and closing trades. More detailed and up-to-date information on terms of trade is available in section – “Specification of contracts” – Cryptopairs.
The maximum volume of cryptocurrencies cannot exceed 25 000 USD in one trading account of client, at the close of the trades. The aggregate volume is calculated by the following formulae:
1 position buy BTCUSD 1 lot at price 7833.96 at current price 7657.44/7833.96.
2 position buy LTCUSD 0.9 lot at price 153.040 at current price 127.598/153.040.
3 position buy ETHUSD 0.5 lot at price 808.684 at current price 773.323/808.684.
Formula for calculating aggregate volume for each position:
BTCUSD = (7657.44 (BID price) + 7833.96 (ASK price)) / 2 * 1 (lot) * 1 (contract size) = 7745.70 USD.
ETHUSD = (773.323 (BID price) + 808.684 (ASK price)) / 2 * 0.5 (lot) * 10 (contract size) = 3955.02 USD
LTCUSD = (127.598 (BID price) + 153.040 (ASK price)) / 2 * 0.9 (lot) * 100 (contract size) = 12628.71 USD.
The aggregate volume for all open positions is equal to 24329.43 USD.
Respectively, when opening additional positions on cryptocurrencies with a volume more than 329.43 USD, a message, “invalid volume” will appear in trading terminal. Please note that the formula for calculating the aggregate volume takes the average price into account: (bid/ask)/2 = mid.
The aggregate volume in USD is floating and it’s calculated by the current market prices.
In MetaTrader 4, the cryptocurrencies are designated as BTCUSD (Bitcoin), LTCUSD (Litecoin) and ETHUSD (Ethereum). They are highlighted in Orange and are located in “Market Review” as the rest of the instruments.
Yes, you can. The peculiarity of CFD contracts is the possibility of trading on both the growth and decline of an asset, as opposed to the cryptocurrency market, where you can only buy.
You should open a trading account in AMarkets, fund it and open a position to buy/sell BTCUSD, LTCUSD, ETHUSD in MetaTrader 4.
Yes. for trades with cryptocurrencies, you can open opposite positions with the same volume on all accounts, except on Classic Swapfree and Direct SwapFree.
All accounts are available for trading cryptocurrency – Classic, Direct, ECN, whose currency is in USD, as well as Bitcoin account; the calculations of all indicators are in milli-bitcoins (1MBT = 0.001 Bitcoin).
You have to open and close trades in MetaTrader 4. There are 3 versions of the platforms – it can be downloaded on to PC, opened in web-version in browser, or installed on mobile device.
A special trading account is not necessary. You can select any from the options in “Trading Conditions”.
AMarkets provides an opportunity to open a trading account designated in Bitcoin, for which the funding and withdrawal is carried out in this cryptocurrency. The conversion of Bitcoin into any other currency within the company is impossible.
The internal transfer from Bitcoin account to other types of accounts is not carried out.
The main differences of this account from the rest are the account currency (MBT), the size of the maximum lot and the number of opened positions. More detailed information is available in terms of trade.
There is a large number of information portals devoted to the cryptocurrency, even the mass media dedicates separate sections to this topic. In addition, AMarkets regularly highlights major events and publishes up-to-date analytics on crypto-currencies for traders on the website.