Making Crypto Trading Less Cryptic

Since online trading apps have popped up all around us, many people with otherwise limited involvement in the financial world have developed an interest in CFD crypto trading (as well as many other instruments like forex, shares, and commodities). Because of the new accessibility of financial markets like the crypto market, some people tend to neglect a very important stage in the process – namely, education – in their haste to start trading. You can educate yourself through many reliable online sources, but a good trading platform like iFOREX will offer you its own educational materials to build up your knowledge base effectively.

It's important to understand trading terms like "leverage" or "pips", but also economic concepts like interest rates or inflation, and understand how they work in practice. Oftentimes, learning from multiple forms of media can help you grasp the basic concepts. Some trading platforms will offer not only an assortment of well-targeted articles but also video tutorials to talk you through practical applications. The real bonus would be to get a chance to be trained one-on-one with a trading coach – which is offered on some platforms, including iFOREX – who can actually guide you through the process of opening and closing deals, thus helping you to learn at your own pace.

Once you have entered the world of CFD crypto trading, you'll need your platform to feed you just the right information in real-time. Look for a brokerage that gives you live rates on your crypto instruments of choice, whether they are Bitcoin, Dogecoin, Polkadot, or Ethereum. And what about some explanations from respected market analysts to help you understand economic events? You can get this on the iFOREX trading platform as well. In this article, we'll do a survey of the crypto sector as of Q3 2022, but we'll also review the educational offerings of iFOREX – a brokerage with a long history in the business, dating back over 25 years.

Crypto Market in 2022

In 2021, cryptocurrencies like Ethereum and Bitcoin reached new heights in terms of price, and some big institutions put money down on crypto, too. Square and PayPal decided to offer their customers the opportunity to use their platforms to buy crypto. AMC agreed to accept Bitcoin payments. Tesla said they're happy to accept Dogecoin. The crypto market seemed to be burgeoning, and that sudden burst of popularity is "going to continue to drive the growth of the industry for a while now", suggested David Abner of Gemini. It's possible that increased crypto acceptance could expand its range of uses, which in turn could drive up demand for cryptos as trading instruments, which would buoy up their prices.

Some challenges have also emerged this year, however, which have thoroughly tested the crypto sector. Climbing inflation, exacerbated by the Ukraine crisis, together with rising interest rates, has dealt a serious blow to the economy. Risk assets – which have come to include cryptocurrencies – have suffered in this environment as well. Bitcoin was down 66% this August compared with late last year. A particularly painful wound came in May when the TerraUSD stablecoin became unpegged from the dollar and crashed together with its sister coin, Luna. Some weeks later, there was another crash, leading crypto exchanges to freeze their clients' funds and lay off workers. "It's clear that stringent regulation could arrive soon", pronounced Marcus Sotirou of GlobalBlock.

Riding the Crypto Volatility

At CFD brokers like iFOREX, traders are able to invest in the price movements in both directions—increases as well as decreases—using a unique trading instrument called a Contract For Difference, or CFD. CFDs essentially allow you to take advantage of volatility without having to purchase the underlying asset (in this case, that would mean not having to own any actual crypto). However, as with any form of online trading, every opportunity comes with an equal amount of risk, so it's vital you stock up on both short and long-term education before you start trading. In the short term, this means checking in daily on financial news and the live rates of your chosen trading instrument (i.e. crypto like Bitcoin or shares of Coca Cola), to glean any information that could help you make more informed, up-to-date trading decisions. In the long term, this means ensuring you have a solid grasp of how CFD trading works so that, when it comes time to decide on the details of the deal you'll open, you'll have the insight required to trade with confidence.

In addition to the educational resources library, iFOREX also offers a variety of news articles, social media updates, and an economic calendar to keep you informed of the latest financial events around the world, the results of which could affect trading prices.

The Bottom Line

iFOREX rates highly as an education-driven crypto platform and users' reports on their experiences with the app are very positive. The app's creators actually developed it in consultation with practiced traders to get their input. Enhancements are often added based on client feedback. If you've been thinking of giving CFD crypto trading a try, take the iFOREX app out for a test drive. You can use it with a complimentary demo account to get the feel for it before moving ahead.