Cryptocurrency strategies to practice
Sure, you could just play around in the CAPEX demo account and see what happens – and there is no harm in doing this really – but to get the most out of the platform, you should practice techniques and strategies. We have compiled a few key cryptocurrency trading strategies you’ll definitely want to practice ahead of switching to the CAPEX real money platform.
Trend lines are one of the most common and typical indicators for cryptocurrencies. This will be the first technique and trading strategy to try using the CAPEX Demo account. A high timeframe trend line ignores the high volatility of cryptocurrencies and provides traders with a clear direction of the actual price movement. This will be crypto trading 101.
Moving Average Trading
Using moving average indicators can provide traders with the clearest definition of the trend. This is done by taking the average price of a cryptocurrency asset and watching any divergence from that price – knowing that this will lead to the return of the price back to its average, traders can determine the correct change in movement.
Using the CAPEX demo account, new traders can experiment with leverage. They can trade at 2:1 and observe how that margin affects their return. Most importantly they can observe what happens if a highly leveraged trade goes south.
Use Stop Losses and Limits
Test how these key tools work. Buy an asset that is on the way down and set a stop loss. See how your trade exists when you hit your acceptable level of loss. These tools are crucial to wise investing, especially when leverage is used.
This is a great strategy to learn that requires traders to take in a lot of information and to really see where the market is heading. No trend can ever last forever so traders can predict the end of a current trend. Imagine predicting the last bitcoin bull run or even the heart-breaking dip. Experiment using information of the news and market insiders, coupled with your analysis of indicators, to predict the change in trend.
Conclusion – Practice crypto CFD trading with CAPEX demo account
There really is no better way to practice cryptocurrency trading than on the CAPEX demo account. With full functionality, plenty of analytical tools, and access to the cryptocurrency markets in virtual real-time, the CAPEX demo account is the perfect tool for learning and experimenting with crypto CFD trading. So, before you make that first real-money trade, be sure to spend some time getting familiar with trading in the CAPEX demo account.
Head to CAPEX to sign up to the crypto demo account and learn to trade today!