The popularity of cryptocurrency trading around the world has waxed and waned over the years. On the one hand, many people have been persuaded to invest due to the opportunity that crypto’s occasional spurts of growth provide; on the other, crypto has also been vulnerable to crashes, and in some places, governments have actively sought to dissuade trading.
In India, however, it is clear that crypto trading has actually increased. Despite a turbulent last few years for digital currency prices, as well as the government’s generally anti-crypto policy (including a 30% tax on crypto investment), surveys conducted by KuCoin in 2022 indicated that there were at that point some 115 million cryptocurrency investors in the country.
Furthermore, within this group, 56% believe crypto to be the “future of finance.” This indicates growing optimism concerning these digital assets, which in turn aligns with some more recent estimates that peg the number of Indian crypto traders closer to 150 million.
With numbers at that scale, the question is no longer whether or not Indians are interested in crypto trading or whether they will continue to be in the near future. Rather, the most interesting question may be where and how Indian investors are going about trading cryptocurrency.
A handful of relatively new crypto exchanges have emerged as the busiest platforms for Indians dealing in digital currency. These include platforms such as WazirX, CoinSwitch, ZebPay, and more.
These have the advantages of being new and trendy and of specializing in crypto transactions. At the same time, however, there will always be some traders who prefer to engage with more established platforms associated with long-standing trust. This is where the platform known as MetaTrader 5 comes into play in the Indian crypto market.
Why MetaTrader 5?
One reason this platform is a favorable option alongside emerging crypto exchanges is that it is easy to access. Today, it is possible to download MetaTrader 5 straight from a browser window on your computer or via a third-party trading app supporting the platform.
This means that despite MetaTrader 5 being a more long-established trading tool, it is every bit as modern and accessible as new-age crypto exchanges (which are often favored for their ease of use and availability).
On top of being easy to make use of, the MetaTrader 5 platform is also associated with security. While it is possible to see security breaches and mishaps on any digital trading service, MetaTrader 5 is known to employ robust authentication measures and advanced data encryption to keep assets, data, and transactions safe.
Finally, MetaTrader 5 may also appeal to some Indian traders because it facilitates different methods of crypto investment. It is true that some newer, crypto-specific exchanges enable investors to buy into a greater variety of digital assets.
But with MetaTrader 5, traders are able to invest in this market in different ways that aren’t always available through exchanges. Below, we’ll discuss the available methods in greater detail.
How Can You Trade Crypto On MetaTrader 5?
On the average cryptocurrency exchange, trading amounts to the direct purchase of cryptocurrency, either with fiat currency or with a different digital currency. That is to say, you buy a given quantity of crypto to hold in a digital wallet with the hope that it will gain value and you can eventually sell it for a profit.
With MetaTrader 5, however, crypto trading works differently and is split into two different methods.
1. Currency Pairs
The first option on MetaTrader 5 is to trade in crypto via currency pairs, much as one would engage with the forex market. This method concerns only Bitcoin, which, while somewhat limiting, suits the Indian market; this is the most popular cryptocurrency, and as of 2022, it was still the case that more Indians buy Bitcoin than any other digital asset.
The average allocation among crypto portfolios is 12.12% (with Dogecoin and Ethereum being the next most popular options).
To trade in a currency pair essentially means to buy or sell Bitcoin (BTC), specifically against a major fiat currency. For example, the popular pairing BTC/USD sets Bitcoin against the U.S. dollar.
Buying into this pair at a value of, say, $35,000 means you are buying it at a point when 1 BTC is equal to $35,000. As the pairing shifts, your investment will gain or lose value accordingly. On MetaTrader 5, you have the option of engaging in this kind of indirect Bitcoin investment via several prominent pairs, including BTC/USD, BTC/KRW, and BTC/JPY.
2. CFDs
The other way of trading cryptocurrency on MetaTrader 5 is to buy and sell CFDs relating to prominent digital assets. For those who may not be familiar with the term, CFD stands for “contract for difference.” It represents a form of trading that is based on an asset’s value but does not involve actual possession of an asset or security.
When you trade in CFDs, you are essentially entering into contracts with a broker or trading platform to exchange the difference in the value of an asset between when the contract begins and when it ends.
If you open a Bitcoin CFD favoring growth with the crypto’s value at $35,000, for instance, and that value is $36,000 by the time the contract ends, you will have earned a profit proportional to the amount you invested. If the value is $34,000 at the end of the contract, however, you will lose a portion of your investment accordingly.
CFDs can take some getting used to, but some traders favor them because they remove the hassle of acquiring and storing assets. Regarding the crypto market, this means there is no need to deal with a digital wallet, digital keys, and so on because no assets are actually held; there are merely contracts relating to those assets’ respective values.
MetaTrader 5 supports this kind of trading for a handful of popular cryptocurrencies, including Bitcoin, Ethereum, Ripple, Litecoin, and Bitcoin Cash.
Also Read: A Beginners Guide for Trading Crypto CFDs
These trading options will appeal to many prospective crypto investors. The crypto pairings provide convenient ways of buying into the most popular digital asset among Indian traders, and the CFDs offer a means of trading without the hassle of crypto storage.
All that’s left for those who are interested is to determine if and when it makes sense to start a crypto portfolio.
As stated, this is a type of investment that has become more popular among Indians. It may also be an asset class on the rise. Despite struggles in recent years, crypto forecasts started to look more optimistic this past summer, when experts projected Bitcoin to go on a bull run toward $35,000 or more.
Those projections have since come to fruition, with Bitcoin at the time of this writing being valued at just over $35,000.
Whether this upward trajectory will continue is impossible to say with certainty. It is always important to enter an investment with skepticism and to conduct a proper analysis. For the time being, though, all indications are that crypto trading is going to continue to appeal to Indian investors.
Steps to Invest in Crypto on MetaTrader 5
Here are the easy steps for beginners on Metatrader 5 to start with it.
1. Open an MT5 Account.
2. Log in to the MT5 Platform:
3. Access Market Watch:
4. Right-click on the Market Watch window within the platform.
5. After right-clicking, choose the “Symbols” tab from the menu.
6. In the Symbols tab, select “Crypto” from the list of available asset categories.
7. The cryptocurrency pairings you have chosen should now be visible in the Market Watch window.
Additional Options:
- Leverage: Select the desired leverage size.
- Cryptocurrency Selection: Choose the specific cryptocurrency you want to trade.
- Account Top-up: Add the required amount of fiat money to your trading account.
Precautions To Take Before Investing In Crypto
Here are some precautions one should take before investing in cryptocurrency.
1. Conduct thorough research on the cryptocurrency market by following leading news sources like The Crypto Times.
2. Consider your risk appetite. Only invest what you can afford to lose.
3. Diversify your crypto portfolio to manage risk.
4. Choose reputable and secure cryptocurrency exchanges.
5. Keep your private keys and passwords secure.
6. Be wary of overly optimistic investment advice.
7. Stay informed about regulatory developments in the crypto space.
8. Use hardware wallets for added security.
9. Monitor market trends and news regularly.
10. Have an exit strategy in place for profit-taking or cutting losses.
Conclusion:
In conclusion, while MetaTrader is still a newcomer in the crypto space, one should never underestimate its promising features such as easy accessibility and security. Indeed, it may have less market experience, but it has much more to offer its users through its innovative approach to crypto products.
However, the crypto space is volatile and unpredictable. It is advisable to consider your risk management strategy before making an investment in it. Also, be aware of crypto scams, Ponzi schemes, and phishing attacks.
