Trading Forex With Crypto: A Guide For Beginners

Forex trading is an immensely popular side hustle in Australia. Many Aussies use it to supplement their incomes and afford better lifestyles. And others consider forex trading a full-time job and make millions from it. 

So, would you like to learn how to trade forex in Australia? The good news is you can, and learning resources are available online. Therefore, you can explore this activity from the comfort of your couch. Convenient, right? But that’s just the tip of the iceberg.

If you want to turn into a forex guru and earn decent returns, do the following:

• Educate Yourself

As a beginner, the worst mistake you can make is venturing into forex trading without adequate knowledge. Ideally, you must be familiar with the ins and outs of the market to safely navigate the risky waters of forex trading and make a decent profit. These include reading currency pairs, placing trades, using stop-loss orders, and managing position sizes.

Don’t trade without prerequisite knowledge because you will make costly mistakes like over-leveraging or failing to use stop loss order and suffer significant losses. If you’d like to expand your knowledge base, check out the training courses offered by reputable platforms out there. Additionally, search for free materials on the internet.

• Choose a Reputable, Crypto-Friendly Broker

Very few brokers in Australia allow forex traders to use digital currencies. Most support common payment methods like credit cards, debit cards, wire transfers, and cheques. These are very popular because they’ve been around for long.

If you plan to use cryptocurrencies for Forex trading, join platforms that allow traders to use popular cryptos like Ethereum, Dogecoin, and Bitcoin. Most importantly, ensure the crypto-friendly broker you choose is regulated by the Australian Securities and Investments Commission (ASIC).

• Practice with a Demo Account

Forex trading is incredibly risky, especially for beginners. If you don’t want to lose all your investment, start with a demo account. That way, you can use virtual funds to test your knowledge and strategies before diving into the real thing. It will also allow you to understand how the trading platform you plan to use works and get a feel of the interface.

So, while choosing a forex broker, prioritize platforms that offer demo accounts. Then, use your demo account to trade as often as possible for several months. You should only switch to the actual forex trading hours after mastering virtual trading and turning in profits consistently.  

• Manage Risk

Risk management is vital in forex trading. If you don’t manage risks, you might lose everything quickly. Once you are confident enough to try trading forex with actual crypto, consider your risk appetite and determine what you can lose on a single trade without crippling your finances. The rule of thumb in this case is risking 2% or less of your trading capital. Don’t forget to use stop-loss to minimize your risk exposure.  

Ready to Trade Forex with Crypto?

You can turn in a decent profit from trading forex with crypto in Australia. But you must educate yourself first and know everything about forex trading. Also, you must find a crypto-friendly broker in Australia and open an account. Don’t forget that this venture is risky. So, use hacks like stop-loss to minimize your losses.