This post was originally published by Deriv on 3 March 2022.
Using cryptocurrencies to trade has been a growing trend over the last few years. Many traders choose to trade with crypto for its various benefits. One of the main attractions is that it can potentially generate more crypto.
Yet, many people are still hesitant to get started with it. If you don't know much about the basics of crypto, trading with cryptocurrencies may seem expensive or confusing. We’re here to debunk that myth and other common misconceptions about cryptocurrency.
Top 3 crypto myths
Myth #1: Crypto is expensive
Not quite. The price can be quite high if you decide to buy the entire Bitcoin at once. But you can also buy and own tiny fractions of it, otherwise known as satoshis. For example, if you place a trade on Deriv, the minimum trade amount required for Bitcoin is 0.0001 BTC. That's currently worth less than 5 USD!
Myth #2: You’ll need to learn a whole new market
If you decide to trade on cryptocurrency, yes, you might need to know a thing or two about the market. But you don't need to learn about an entirely new market if you're trading with crypto. Like trading with USD, EUR or any other fiat currency, all you have to do is select your favourite market to trade. Then place your trade with the cryptocurrency of your choice. If you don’t want to trade the crypto market, trade with it.
Myth #3: The only way to have more crypto is to buy it
When you trade with cryptocurrency on markets like forex or synthetics and earn a payout, you're adding to your crypto wallet. Yes, you do need to buy cryptocurrency to start using it, but after your initial purchase, you can potentially earn more through your trades. Just like gaining profit in fiat currency, you're gaining profit in cryptocurrency.
How to start crypto trading?
If you are already familiar with trading, it’s not that different. Let’s go through the steps in detail.
1. Open a crypto account.
Some use so-called wallets to keep their crypto safe. The wallet can be in the form of an app or a device but, on Deriv, it’s easier. You don’t need to download another app or buy another device. Keep your crypto coins in your Deriv account and place trades directly from there. All you need to do is:
On the Trader’s Hub, click on the dropdown and choose Real.
Click Get to create a Deriv account.
On the Add a Deriv account tab, select the cryptocurrency account you would like to add and click Add account.
2. Buy crypto using one of our fiat-to-crypto exchanges.
A fiat-to-crypto exchange, also known as a fiat onramp, is like a cashier that helps you convert fiat money into cryptocurrency. In other words, you buy crypto with regular money. To fund your Deriv account this way, here is what you need to do:
Select your new cryptocurrency account, go to the Cashier page and select Fiat onramp.
Select your preferred fiat-to-crypto exchange option. Complete the required steps to prove your identity and proceed with the transaction.
3. Place your trade.
Congratulations! You are now set to start your trading journey with crypto. Go to your favourite cryptocurrency trading platform and place your trade on your preferred market.
Log in or sign up to create your Deriv crypto account and start trading with popular cryptocurrencies.
Disclaimer:
The information contained within this blog article is for educational purposes only and is not intended as financial or investment advice.
Cryptocurrency accounts are unavailable to clients residing within the European Union.
Trading is risky. Past performance is not indicative of future results. It is recommended to do your own research prior to making any trading decisions.
