Oanda crypto Trading
Oanda is a forex trading platform and forex broker, providing an opportunity to trade with cryptocurrency CFDs.
CFD stands for ‘contract for difference’. A contract for difference is a deal between a buyer and a seller stipulating that the buyer will pay the seller the difference between the current value of a commodity and its value at the time the agreement was made. In the case of crypto trading, that would be the difference between the price of the opening and closing trades.
These commodities are derivatives of underlying assets that allow traders to trade by speculating on their future market movements. Cryptocurrency CFDs are therefore derivative commodities of cryptocurrencies such as Bitcoin that allow you to predict the price of the underlying crypto coin while neither owning the coin nor trading on the coin itself and still profit.
Therefore, instead of negotiating using the real asset, two parties agree to exchange money based on the value of the underlying asset.
Crypto CFDs also have the advantage of allowing you to trade with leverage. Trading with leverage opens up greater profit margins, and risk of loss. You must be careful if you choose to trade with crypto CFD leverage. 78.3% of all retail investors lose money when trading with CFDs. You will only minimize this risk by putting in the work to understand how CFDs work.
Oanda CFD Trading Options
What options do you have when trading in cryptocurrency CFDs at Oanda?
Just like in forex trading, cryptocurrency CFDs are traded with trading instruments. The more instruments a trader has at their disposal, the more flexible they are to make smart trading choices and maneuver in the market.
Every asset on the market offers variable gains, with instruments that offer liquidity being more popular. Cryptocurrency CFD pairs are in this category since they are attached to highly volatile crypto coins. Oanda offers the following CFD trading options:
Oanda CFD Currency Pairs
Oanda offers both cryptocurrency CFD pairs and currency-currency pairs. The crypto pairs include:
BTC/USD (Bitcoin against USD)
ETH/USD (Ether against USD)
LTC/USD (Litecoin against USD)
Oanda CFD Indices
Indices can be an alternative to forex pairs which traditionally have low volatility. They are more volatile than forex but less volatile than stocks. Indices will also help you gauge the volatility of assets, guiding you to make the right choices about your cryptocurrency CFD trades.
Oanda Alternatives
Here are cryptocurrency trading options featured by other platforms. They will help you get a pleasant trading experience, both for beginners and industry veterans who have not yet tried them out:
Coinbase - best crypto exchange
Coinbase has a reputation for being the most secure crypto platform. It supports a wide array of different cryptocurrencies as well. This is the best cryptocurrency exchange platform, especially for beginners.
eToro - best crypto broker
eToro is lauded for its user-friendly, and highly accessible mobile app. It is the best crypto broker and social trading platform available today.
FAQ
Can I Trade Crypto Currency at Oanda?
You can trade cryptocurrency CFDs as pairs with the USA dollar.
Which Cryptocurrency CFDs Pairs Can You Trade as on Oanda?
You can trade Bitcoin (BTC/USD), Bitcoin Cash (BCH/USD), Ether (ETH/USD), and Litecoin (LTC/USD) as CFD cryptocurrency pairs on Oanda.
What are Cryptocurrency Pairs?
These are a pair of assets that can be traded against a major currency or each other. A common asset in pairs is the US Dollar. Before choosing a pair to trade with, you need to know each of their strengths properly.
Which is the Best Cryptocurrency for a Beginner?
There is no best cryptocurrency because the success you will achieve will depend on the market trends, and behavior of the selected cryptocurrency at the time you start trading. The pair you decide to trade will also play a big role in how well you perform.
Here are the cryptocurrency CFD pairs offered by Oanda:
BTC/USD — Bitcoin (BTC) against the US Dollar
ETH/USD — Ether (ETH) against the US Dollar. Ether is the second biggest cryptocurrency after Bitcoin
LTC/USD — Litecoin (LTC) against the US dollar
Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
The area of responsibility of Mikhail includes covering the news of currency and stock markets, fact checking, updating and editing the content published on the Traders Union website. He successfully analyzes complex financial issues and explains their meaning in simple and understandable language for ordinary people. Mikhail generates content that provides full contact with the readers.
Mikhail’s motto: Learn something new and share your experience – never stop!
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.
Olga has extensive experience in writing and editing articles about the specifics of working in the Forex market, cryptocurrency market, stock exchanges and also in the segment of financial investment in general. This level of expertise allows Olga to create unique and comprehensive articles, describing complex investment mechanisms in a simple and accessible way for traders of any level.
Olga’s motto: Do well and you’ll be well!
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.