MetaTrader 5 (MT5) trading platform is one of the most popular trading platforms in the financial industry and is used by millions of traders across the globe for trading Forex, stocks, metals, equity indices, commodities, cryptocurrencies and futures. Through time, it has become the platform of choice for both traders and cryptocurrency enthusiasts. Traders now have the opportunity to trade Bitcoin, Ethereum and a large range of other cryptos as part of the asset suite on the MT5 platform, enabling them to be part of the cryptocurrency trend. Brokers are also benefiting from increased revenue opportunities as the interest in crypto continues to grab the headlines for reaching levels not seen before in Forex.
So why is MT5 so popular? There are many reasons. For a start, it can manage multiple asset classes, it is FIX compliant and has applications for desktop, as well as mobile (iPad & Android). Furthermore, it makes use of trading algos and automated bots which can help maximize profits while minimizing manual input. Traders are also able to download free applications from the market. This is particularly useful for beginners who wish to better understand the principles of algorithmic trading and choose robots that best compliment their trading strategy.
There are also other reasons:
Built-in market analysis tools with dozens of technical indicators and analytical objects which can be used to gauge the best times to buy or sell for profit.
A trader can profit from upwards or downwards cryptocurrency price movements and potentially profit by selling (going short) when prices are falling and by buying (going long) when prices are rising.
As cryptocurrencies are highly volatile assets, they present many trading opportunities for traders.
Cryptos can be traded on an intraday, swing trading or position trading basis. Scalping and hedging is also possible.
The mobile app supports trading functions 24/7 and provides analytical capabilities as well as enabling traders to monitor their account status and view their trading history.
How to Trade Cryptocurrencies on MetaTrader 5
To start trading cryptocurrencies you should follow these steps:
Open an MT5 account with your broker.
Using your credentials, log in to your MT5 platform.
After opening the platform and logging in, right-click on the Market Watch window and select the ‘Symbols’ tab.
Select ‘Crypto’ from the list of assets in the ‘Symbols’ window. Click against each cryptocurrency symbol, then click ‘Show’ to include the cryptocurrency pairings to the Market Watch window.
The cryptocurrency pairing is now available for trading.
Cryptocurrency trading usually comes with its own contract specifications which will be stipulated by your broker.
Trading cryptocurrencies on MT5 is therefore a straightforward and attractive option thanks to the number of benefits offered. It is also possible to get involved in the cryptocurrency business and trying to generate revenue by exchanging cryptocurrencies for cash via an exchange. The principle is to buy Bitcoin, for example, at a lower price and resell it for fiat currencies at a higher price. This alternative method of trading also offers advantages although can present a higher risk than trading on MT5 as there is no way of knowing when the price of a cryptocurrency will be low enough to buy or high enough to sell. Cryptocurrencies are highly volatile assets, so it is arguably easier to sustain losses using this approach.
Furthermore, it can take some time to confirm transactions. During this window period, the price of the cryptocurrency may change and could move adversely against you.
If you would like to launch your own crypto brokerage and offer your clients the opportunity to start trading cryptocurrencies on MT5 platform, get in touch.