Pros and cons of trading cryptocurrencies via Forex trading mode on Olymp Trade


daytrading crypto on Olymp TradeThere are many financial instruments available on the Olymp Trade platform. Cryptocurrencies are one of the choices. They present great opportunities to traders as they are very volatile assets. Nevertheless, it also means greater risk. That is why I want to explain how to use Forex trading mode on Olymp Trade. Let’s begin.

Forex trading mode on the Olymp Trade platform

To trade cryptocurrencies on Olymp Trade, you have to be logged in to your account first. Next, go to the list of the assets offered by this broker. Choose the Forex tab and then Crypto. There are three cryptos you can select, Bitcoin (BTC), Ethereum (ETH) and Litecoin (LTC).

Selecting crypto asset for daytrading
Selecting crypto assets for day trading
crypto trading interface Olymp Trade
In order to open a position, you need to define transaction amount (1), a multiplier (2), SL and TP (3) and predict the market direction (4)

You will have some more decisions to make. First, the amount of money you are willing to invest in the trade. Second, the multiplier that will allow you to trade with a bigger quote than you have decided in the first place. This is quite a powerful tool as you can earn a lot with it, but you have to be very careful not to lose everything. Set a stop loss and take profit, so the transaction will be closed automatically when the price reaches predetermined levels. And finally, after a profound analysis of the market, assess the future price direction and hit a green or red button accordingly.

 

In the Forex trading mode, there is also a possibility to set up a pending order. That is, you can automate your trading by determining the quote or the time when you want a position to be opened.

pending order
It is possible to set up a pending order using price level or time

Forex day trading on Olymp Trade

Day trading means you open and close transactions on the same day. No position is staying open overnight. This allows avoiding some fees. On the other hand, it limits your trading time period, so try to choose the most promising and volatile cryptos.

It is also important to stay up-to-date with the news. They influence the cryptocurrencies market, and you should try to benefit from this knowledge.

Always protect your capital and have the risk management strategy well thought through.

You may day trade on the Forex mode with breakouts, news trading and scalping.

In our example below, you can see a chart for Litecoin. The candlesticks period is 15 minutes. The invested amount is 100 and the multiplier is set at 5. This means there are really $500 in the game. The stop loss and take profit are defined, and the Alligator indicator is added to the chart to produce trading signals.

transaction on Litecoin (LTC)
An example of a crypto transaction on Litecoin (LTC)

Final words

The potential of Forex day trading is quite immense. You do not pay overnight fees and get fast results. You get to use a wonderful tool, a multiplier, so you can trade with a much bigger sum than you actually have in the account. Naturally, you should be aware that this increases risk at the same time. Your loss can be much more severe when you trade with the leverage. Cryptocurrencies are generally risky assets, as they are extremely volatile. Always remember to set take profit and stop loss. Moreover, you should follow the news that can have a large impact on cryptos behaviour.

Develop a good risk management strategy. You can test your technique in the Olymp Trade demo account. All functions are available the same way they work in the real account, but you trade with the demo currency instead of your own money. This assures you can practice in a safe environment, not worrying about diminishing capital. Use the demo account whenever you want to check a new asset or a strategy.

Wish you high profits!

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