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 understanding of the relatively new market.
It would be a terrible shame not to provide such people with 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 for unprepared investors and one should approach it very carefully. Luckily for us, there is a practice account called a crypto demo account offered by many companies where risk-free trading is possible.
Crypto trading – Where to open a Free Demo
Cryptocurrency trading is available at many CFD brokers. These providers give the chance to try crypto trading with imaginary funds and do not require any initial investment. An email account and your name usually suffice. Here is a selection of 3 leading cryptocurrency brokers that all offer a free demo version, are highly reputable, and are all regulated and authorised by at least one reputable financial regulatory body.
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.
All trading involves risk. Only risk capital you're prepared to lose.
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 crypto demo and your first trade
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 behave 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 on how the cryptocurrency market works and behaves in certain situations.
- Test the 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.
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.
- Forex Brokers That Trade Cryptocurrency On Weekends - October 4, 2022
- Cent Account vs Standard Account – How Do They Differ? - October 3, 2022
- 8 Best Forex Brokers with Instant Withdrawals - October 3, 2022