A guide to cryptocurrency trading with AvaTrade

9 min read

Investing in cryptocurrencies has become a hot sensation over the past few years. These digital assets have gained interest because of the high return possibilities it has. We can hear how people have purchased different tokens which have given them high returns over time. But for some investors, buying cryptocurrencies is not attractive as they have high volatility, and holding them might be too risky. For these investors, there is another form of crypto trading and that’s trading with CFDs, and one of the best places to do so is on AvaTrade.

What is AvaTrade

AvaTrade is an online broker that offers trading opportunities with different financial instruments. Here traders can find assets such as CFDs, forex, and cryptocurrencies. Founded in 2006, it is headquartered in Dublin, Ireland, with regulatory oversight from the Central Bank of Ireland. Alongside Ireland, AvaTrade holds regulatory licenses from countries such as Japan, Australia, South Africa, United Arab Emirates, and Israel. There is also a good selection of trading platforms available on this broker’s website, with the most popular of them being MetaTrader4 along with AvaTrade native platform AvaTradeGo. 

Trading crypto on AvaTrade

AvaTrade is not a crypto exchange, and you can not purchase cryptocurrencies on this platform. But when it comes to trading with crypto, then this is one of the best brokers to visit if you are aiming to trade with some of the biggest tokens. AvaTrade offers crypto CFDs, which can be really beneficial considering the fact that cryptocurrencies tend to be volatile assets, and contracts for differences can generate huge profits. AvaTrade also has good leverage that traders can use to maximize their profits. But this leverage is only good for non-EU members, as EU members only have leverage up to 2:1, while the rest of the world can benefit with the leverage up to 25:1. When trading with cryptocurrencies on AvaTrade you are not actually own any tokens, but just make speculations on the price of a token. There is one factor that we might consider a disadvantage and that’s a really small selection of cryptocurrencies available for trading. Yes, you will find cryptos such as Bitcoin and Ethereum, and for many, that’s enough, but in total there are only 13 cryptos and 1 crypto index available for trading. These tokens are the following:

  • Bitcoin
  • Bitcoin Cash
  • Bitcoin Gold
  • Ethereum
  • EOS
  • NEO
  • Dash
  • Chainlink
  • Uniswap
  • Litecoin
  • Stellar
  • Miota
  • Ripple

Crypto10 index

There is still a way to trade with other cryptocurrencies, and that is through the Crypto10 index that is available on the brokerage. This is the index that tracks the performance of the top 10 cryptocurrencies on the market by market capitalization. This index is considered one of the best crypto indexes on the market and gives us possibilities to practically trade with the whole crypto market, as the top 10 tokens almost take up 80% of the whole crypto market.

Trading instruments on AvaTrade

There are many different instruments that traders can use to make their trading experience more enjoyable and profitable on AvaTrade. Here we will go over some of them and tell you everything that you can expect to find here.

Trading Central

Trading Central is a mixture of different features that traders can use to get different relevant information about the market and make their investment decisions based on that. Here you will find the Economic Calendar, Market Buzz, Featured Ideas, and Analyst Views.

Economic Calendar

When trading crypto CFDs the price can move quickly following some major news from different countries. Because of this, we need to be up-to-date with everything going on in the financial markets, so we can avoid losses and don’t miss out on potential gains. AvaTrade Trading Central gives us this opportunity with their Economic Calendar. Here you will see every upcoming economic event that can affect both forex and crypto markets. Here you will be given a list of events with indications of which country this event is going to come from and how strong of an effect it can have. You can also see past events that took place and what kind of effect they had on the market once the event took place. If you are a scalper then this is a tool for you.

Market Buzz

When visiting market buzz you will see the collection of bubbles different by size. These bubbles represent different cryptocurrencies, stocks, and other assets, and the bigger bubble the bigger buzz it is generating right now. It represents how much each asset is mentioned on the news and social media. You will also see the orientation of this buzz, whether is it a positive or negative buzz. Here you will also see trend analysis and where this news is coming from. This is a great tool for those who are interested in trend trading.

Featured Ideas

Here you will be able to find different trading ideas for different cryptocurrencies and currency pairs. You will be able to see if the market is bullish or bearish. They work kind of like signals, telling you the exact state of the market, the possible routes the market can take, and approximately how long this market condition will remain.

Analyst Views

As the name suggests, Analyst Views is a section where many in-house traders are giving out their views on the current market. They give us different charts filled with all necessary indicators, support, and resistance levels, and also leave other necessary comments which will be useful for our trading.

Guardian Angel

Trading crypto CFDs can be really profitable, but it can also result in huge losses especially if we use leverage. But you can avoid the majority of these risks by using Guardian Angel, which is a combination of risk management tools for MetaTrader 4 and 5. When making trading decisions, Guardian Angel will give you instant feedback on your actions, and you can act accordingly, to this feedback. It will tell you how risky your trading strategy is, where to place a stop loss order, provide you with margin call alerts, and inform you with relevant market information, and other important information. What is good about this is that it is not some basic automated risk management tool, which gives out the same advice to every trader. It learns about each trader and gives them information that will be relevant to the actions they are taking.

Getting started on AvaTrade

Starting your crypto trading journey on AvaTrade is an easy and fast process. Unlike crypto exchanges, which require numerous registration and verification phases, on AvaTrade you simply need to create your account by providing an email address, some personal information such as your occupation and average income, and your residential address. This is all and after this, you will be given full freedom to trade as you see fit.

FAQs

Does AvaTrade have cryptocurrencies?

Yes, AvaTrade has cryptocurrencies that traders can trade with. But unlike crypto exchanges, you are not purchasing crypto tokens, but you are trading with crypto CFDs. In total, AvaTrade supports the trading of 13 cryptocurrencies and one crypto index, Crypto10, which is the index composed of the top 10 cryptos by market capitalization.

Is AvaTrade regulated in the US?

No, AvaTrade is not regulated in the United States, but this does not mean that they don’t have any regulatory oversight. They have regulations from countries such as Ireland, Japan, Australia, and many others.

Is there a crypto wallet on AvaTrade?

No. Since AvaTrade does not give you the ability to purchase cryptocurrencies, and you are only able to trade with CFDs, there is no need for AvaTrade to provide us with noncustodial crypto wallets on their website.

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