How to buy/exchange Cryptocurrencies on Deriv?

Invest in Cryptocurrencies with Deriv

Without going through a digital wallet, we can quickly trade Bitcoin, Ethereum and Ripple through a broker, Deriv.

Bitcoin

With a very low margin, you can trade the world’s leading cryptocurrency CFDs.

Ethereum

Trading Ethereum through Deriv’s Crypto CFDs, which is the dominant Bitcoin competitor among cryptocurrencies.

Ripple

Trading XRP, the cryptocurrency created by Ripple, is favored by major banks.

CFD (Contracts for Difference) is a derivative product, which means that crypto CFD traders do not own digital currency when trading, but they can speculate long (rising market) and short (falling) without being restricted by the traditional crypto trading market).

The margin requirements and minimum transaction size of Crypto CFDs are much lower than Crypto futures contracts, which makes them easier for smaller traders to obtain.

In addition, Crypto CFD trading also eliminates the requirement to open a digital wallet, allowing traders to speculate on cryptocurrency CFDs next to traditional markets such as foreign exchange, indices, or commodities.

Invest in Cryptocurrencies with Deriv

What is Cryptocurrency market?

Cryptocurrency (or Crypto digital currency) is a digital form of currency created by technology. This is different from any other currency designed, printed (physically) or “printed” (digitized) by the central bank in the past.

“Crypto” is short for “cryptography”, which is a method of using computer technology to safely hide information and identify users.

The purpose of cryptocurrencies is to be more reliable, faster, and cheaper to maintain than the standard government-backed currencies that we are accustomed to; and because they are directly exchanged between users, there is no need for financial institutions to hold the money; they It also allows users to view the transaction process from sending to receiving and delivery in a completely transparent manner.

Without blockchain technology, all this is impossible.

Blockchain technology:

Cryptocurrency is often confused with blockchain. Blockchain technology is essentially a shared computer system infrastructure. It forms a decentralized network. Cryptocurrency is used on the blockchain. Although cryptocurrency has forced blockchain to become the focus of attention, there are many other uses of blockchain that are being explored by other companies, which are beyond the scope of this introduction.

The future of cryptocurrency:

Many people are excited about the future of cryptocurrency and expect it to become the main payment method. In the early days, it was widely criticized as a payment method because it was thought to be used by criminals on the dark web to evade the usual anti-money laundering agreements. However, in recent years, it has become a more widely accepted payment method for legitimate businesses and individuals, and coffee shops, online stores and even some stores now accept cryptocurrency as a payment method.

Bitcoin

It is generally believed that Bitcoin is the original decentralized cryptocurrency, launched in 2009 by a pseudonymous developer named Satoshi Nakamoto. As the acceptance of Crypto payments increases, so does the number of digital currencies (hundreds or even thousands). Although governments continue to intervene and the market crashes, Bitcoin is still the most popular, and it continues to appear in the headlines of various countries and is discussed among people from all walks of life (not trading).

Invest in Cryptocurrencies with Deriv

So, what does this have to do with trading?

Large speculators on the market

If the market fluctuates, it will attract speculators’ attention, and cryptocurrency has very large volatility, which makes it more attractive to some traders. However, even for experienced investors, it is difficult for digital currencies to find “intrinsic value”. Some people think they are priceless commodities, while others believe they will return to zero.

Even if fund managers, hedge funds, and institutions speculate on cryptocurrencies, the problem is still that platforms that provide digital currencies support the use of payment systems, not speculators arbitrage. Functions such as stop loss, take profit, leverage, and short-selling capabilities cannot be used on the blockchain, and these are common functions required by professional traders.

Therefore, it is only a matter of time before CME launches Bitcoin as a tradable futures contract, which allows professional traders to speculate on the violent volatility of Bitcoin, trade long, short or hedge their Crypto assets.

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Bitcoin futures are not for everyone

Although the introduction of crypto futures is an important step for speculators, high margin requirements, high prices, and volatility discourage traders who do not have millions of dollars in most trading accounts. , Which paved the way for the creation of cryptocurrency CFDs (contracts for difference), solved these problems, and opened up cryptocurrency speculation to retail traders.

Invest in Cryptocurrencies with Deriv

Why Crypto CFDs but not actual Cryptos?

Long or short trading:

Trading cryptocurrency derivatives (such as CFDs) allows traders to go long or short, which is not feasible in traditional Crypto payment systems.

Margin:

Trading As the trading value of cryptocurrencies such as Bitcoin is much higher than that of some traditional markets, it is more important to be able to trade on margin. Margin allows traders to buy Crypto CFDs at a fraction of the cost of the underlying market, which means that less investment funds are required to speculate in that market.

No need for digital wallets:

There are many traders who want to speculate in cryptocurrencies, but have to enter a new ecosystem and use digital wallets. This is no longer the case with cryptocurrency CFDs, because traders can fund their accounts and withdraw profits in a simple way in Deriv.

CFDs allow the use of stop loss and take profit orders:

Since cryptocurrency exchanges are traditionally set up as payment systems, they may lack the tools required by speculators, such as stop loss, take profit or limit orders. This is not the case with Crypto CFDs, because CFDs can satisfy investors to use a variety of trading strategy tools.

Diversify your investment portfolio:

Now, traders who have traditionally traded foreign exchange, commodities or indices can now expand their focus on commodities and conduct speculative arbitrage on cryptocurrencies on the same platform.

Higher levels of volatility:

As the saying goes, volatility brings opportunities; for cryptocurrencies, there are many opportunities for arbitrage. In fact, it may be the most volatile asset class overall; of course, risk management is still crucial to the success of traders, and traders should be very aware of all potential losses that may occur during the volatility of the trading market.

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Why people choose Deriv to invest in Cryptocurrencies?

Trading crypto with traditional CFDs through an account:

Currency Deriv is a multi-asset broker that provides popular cryptocurrencies as well as foreign exchange, indices and commodities.

Fast execution:

Deriv’s Crypto CFD products mean that traders don’t have to wait for crypto exchanges to process orders, and Deriv also provides its traders with fast execution trading in cryptocurrencies in other markets.

World-class trading infrastructure:

Deriv has invested heavily in trading infrastructure to provide fast transaction execution, which is an ideal environment for scalpers, HTF (high frequency traders) and automated traders.

Multiple deposit options:

Deriv’s customers can deposit through a variety of payment methods, such as Skrill, Neteller, credit card and bank wire transfer.

Use of zero-commission trading:

In Deriv, Deriv’s traders can enter and exit without commissions, and only pay the bid-ask spread.

Invest in Cryptocurrencies with Deriv