Cryptocurrency Trading Demo Account – How to start

Cryptocurrencies are one of the most attractive choices when it comes to investing or trading. They are rightfully called the investment of the decade and many experts consider them to be the future of the financial system. Cryptocurrencies defied all market expectations this year and they have successfully eclipsed many other financial markets. Having said that, cryptocurrencies are still a risky investment not only for new traders but for all investors who do not have the knowledge and the understanding of the relatively new market.

It would be a terrible shame not to provide to such people an opportunity to trade cryptocurrencies and be a part of the exponentially growing market where anything is possible. Cryptocurrency trading with real money can be, however, a devastating experience and one should approach it very carefully. Luckily for us, there is a practice account called a demo account offered by many companies where risk-free trading is possible.

Crypto trading – Where to open a Free demo version

Cryptocurrency trading is available at many CFDs brokers. These providers give the chance to try crypto trading with imaginary funds and do not require from you any initial investment. An email account and your name usually suffice. We have selected 3 following leading cryptocurrency brokers that all offer a free demo version and are highly reputable and licensed by the European regulator CySEC.

Broker Regulated by Regulatory agencies ensure that brokers operate in a transparent and honest way. They protect the best interests of clients and also feature an investor compensation scheme which protects trader's deposits up to a certain limit. Some of the major regulators in the industry include the CySEC in Cyprus, the FCA in the UK and the ASIC in Australia. Min. deposit Trading platforms A trading platform is a computer or mobile software program used to execute transactions within the financial markets. Cryptocurrencies Warning &
Ad Disclosure The table below contains links to 3rd party websites of our top partners from whom we receive compensation at no additional cost to you.

Availability subject to regulation
ASICCySECFCA £/€/$ 200 In-house built platform 40 crypto pairs Start tradingRead a review
CySECFCA £/€/$ 1 MT4 & xStation 5 25 crypto pairs Start tradingRead a review
ASICCySECFCA £/€/$ 100 In-house built platform 7 crypto pairs Start tradingRead a review

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Between 74-89% of retail investor accounts lose money when trading CFDs.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.


If you want further information regarding each company, do not hesitate to read separate reviews where you can also share your experience once you obtain it.

How to open a free demo and your first crypto position

There is nothing difficult about opening a free demo version for crypto trading. You can visit one of the mentioned brokers above or any other company that you trust. Once you do that head for their homepage where information about a free demo account should be mentioned. In order to create your first crypto position visit the cryptocurrency section, which might be also sometimes located under the CFD or Forex segment. Once you do that you are free to choose your desired coins and start trading with your imaginary funds. If you lose this capital, nothing happens and you can ask for replenishment or open a new demo.

Cryptocurrency Trading – Purpose of a Demo Account

A function of a cryptocurrency demo account is to try trading without having to worry about your real money. You should act on your demo version as if you were trading on a real account so you could learn the appropriate behaviour which you can then apply on the real market. A crypto demo account should help you to:

  • Get a real touch how cryptocurrency market works and behaves in certain situations.
  • Test platform of a broker where you might trade in the future with your real funds.
  • Test your strategies for crypto trading and your expected moves which you plan to use later on with real sources.
  • Determine which cryptocurrencies are the most suitable and profitable for your style of trading.

Cryptocurrency demo account – FAQ


A cryptocurrency demo account is an account type that allows you to trade Bitcoin and altcoins without taking any risks. Reason being is that you trade with imaginary chips that have no real value. This account type is for practice purposes only.

Yes, a cryptocurrency demo account is offered by dozens of CFD brokers free of charge. No initial deposit required. Here is a list of companies that support demo trading. More details.

To start a demo trade you first have to open a new demo account. In most cases, that is a matter of a few seconds. Once your demo account is opened, you can start your demo trades.

Generally speaking, it is advised to use a cryptocurrency demo account where you might want to trade with real funds in the future. By doing so, you will already familiarise yourself with the trading platform of a cryptocurrency broker. Proceed to our article the best cryptocurrency brokers to see brokers compared side by side.



Michael

20 Comments

  • Avatar

    please, is Itrade Gold company a legitimate one? if yes, for how long have they be in business? Does it (company) have any negative track record? is it safe to invest with them?

    • Michael

      Hello George,
      I tried to look into the company, but even tho they have been operating since 2016, there is basically not a single mention about them on the internet. It is, therefore, very hard to determine whether they are legitimate or not. If you were also unable to find any information that they are good to go, I would if I were you rather go for something more established than this.

  • Avatar

    Please, where can I open a demo account for Ethereum?

    • Michael

      Hey Gerry,
      All 3 cryptocurrency brokers that are in the comparison above offer Ethereum trading, so you can decide which company you like the most and there you can open a demo version. Note that apart from Ethereum you can also open a demo version to trade Bitcoin, Bitcoin cash, Bitcoin gold, Ethereum Classic, Litecoin, Zcash Ripple, IOTA, Dash, EOS, Cardano, Neo, Stellar, Monero, Tron, Qtum. Each crypto broker features different coins so make sure to check the icons of cryptocurrencies in the comparison above.

  • Avatar

    Hi Michael. Please I really want to inquire if Crypto world company is legitimate? Reasons because less than a week after I bought a robot coin, my account stopped functioning.

    • Michael

      Hello Juan,

      I am sorry to disappoint you, but I personally do not think they are trustworthy and there are a number of reasons why. The biggest issue I see is that they advertise a 2.40% daily return on your investment. That means 72% per month, this amount is absurd. That is why I wrote the article about them so you guys would be careful before you invest money with them.

  • Avatar

    Message *hi I want a demo that I can use so that I would start

    • Michael

      Hello Gugu,
      In that case feel free to choose one of the companies from the table above, visit their website and open a free demo 🙂

  • Avatar

    Thanks for the sharing the guide. Are there more legitimate cryptocurrency brokers that you would recommend?

  • Avatar

    Thanks once again for the updated link you sent.

    Please have do you know anything about “https://www.blockchain.com/” ?

    • Michael

      No worries, glad I could be of help. Despite the domain name of the website, I never heard about it, so I can’t really help you there.

  • Avatar

    hello Michael….I have no experience in trading crypto currency but I read a lot about them on the internet. I was thinking to
    use pre programmed trading bots but after researching I found that some needs technical skills and some (or most) too good to be true.
    so my question is how/where can I learn to trade crypto currency without using automated trading bots or even brokers.
    thank you for your help

    • Michael

      Hello Ahmed,
      I dare to say that almost every bot is a scam that will just rob you of your money. If they worked, people who invented them would use them for their own gain and they would not sell them on the internet. May I ask why don’t you want to use a broker to try cryptocurrency trading on a free demo? There is nothing to lose for you, there do not require from you any deposit or investment. Anyway, there is always paper trading.

  • Avatar

    thank you Michael…i’ll try the free demos and I think using a knowledgeable broker is a good idea for a newbie like me.
    thanks again

  • Avatar

    do i have to first open a live account and do kyc before accessing a demo

  • Avatar

    Hi Michael,

    This cryptocurrencies thing has been going around for far too long for me not to dab into it. I would love to join the train of crypto traders but I dare to say I know nothing about it. Your advice and guidance would go a long way.
    Anticipating your response.
    Thanks

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