The Ultimate MetaTrader 5 Guide for Crypto Traders

Cryptocurrency trading requires skill, patience, and a good trading platform with the best tools to succeed. The MetaTrader 5 (MT5) platform is probably the most useful tool today among traders, thanks to a rich history of broker integration and access to various trading and technical tools.

Introduction to MetaTrader 5

The MetaTrader 5 platform is an all-in-one trading software built with the MQL language. The software is available for Windows, MacOS, Android, and iOS devices, providing access to over 50 million traders globally. Built and released in 2010, the app is often considered a direct sequel to the MetaTrader4 (MT4). The MT5 app was designed to offer traders a different trading experience and open access to more trading instruments. The various functions make it a top choice for many traders looking to maximize their trades.

Key Takeaways

• The MT5 platform provides third-party broker integration with advanced trading and technical tools.

• MetaTrader 5 allows you to trade various assets, including stocks, Contracts for Difference (CFDs), foreign exchange (forex or FX), and cryptocurrencies.

• With MT5, you can use algorithmic trading applications to automate trades. You can also create your own expert advisors (EAs) or import built-in EAs onto the platform.

How To Trade Crypto on MetaTrader 5

MT5 was developed mainly for conventional assets like FX pairs, equities, and commodities. These markets have established liquidity and historical data, making them ideal for the tools and features available in MT5. However, because of its increasing popularity and volatility, several brokers now provide cryptocurrency trading on the platform.

On a typical crypto exchange, trading involves directly buying and holding cryptocurrency with fiat or other digital currencies. Also, you can only profit when the underlying currency gains value. Metatrader 5 enables two unique crypto trading methods.

The first option on MetaTrader 5 is to trade cryptocurrency using currency pairings, just as in the FX market. 

You purchase or sell Bitcoin (BTC) against a major fiat currency to trade a currency pair. For example, the popular BTC/USD pairs Bitcoin against the US dollar.

MetaTrader 5 also enables trading cryptocurrency CFDs. These derivatives track the underlying crypto price without actually owning the digital assets. CFD stands for "contract for difference," referring to a type of trading based on an asset's value but not involving the actual possession of the asset or security.

Some brokers often provide CFDs based on cryptocurrencies, which means you trade on the price swings of the underlying coin rather than owning it. CFD trading provides advantages since it allows traders to profit from rising and falling markets. This allows you to profit even during a bear market. Furthermore, CFDs provide more leverage, allowing traders to manage larger positions with less funds. This can be significant in the volatile crypto market.

CFDs may take some getting used to, but some traders like them since they eliminate the inconvenience of obtaining and keeping assets. 

MetaTrader 5 allows this type of trading for several prominent cryptocurrencies, including Bitcoin, Ethereum, Ripple, Litecoin, and Bitcoin Cash. Cryptocurrencies are often priced against the USD and EUR.

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Useful Trading Tools on MT5 for Crypto Traders

MT5's trading tools are the platform's best features. These expansive tools allow traders to do more with charts and access more information than their broker's proprietary trading platforms. 

• Technical analysis tools: Technical indicators, objects, and charts allow traders to review and view prices, mark important zones, and analyze assets for trading. Most indicators are built in, but traders can also customize and import indicators from other sources. 

• Algorithmic trading: MT5 allows traders to use the in-built and imported trading robots and expert advisors. Trades can also design their EAs from scratch using the MQL5 language. These tools provide greater flexibility for traders.

• Market orders: MT5 has six market orders: Buy Stop, Sell Stop, Buy Limit, Sell Limit, Buy Stop Limit, and Sell Stop Limit. These allow traders to execute trades when the price hits their preferred levels.

• Fundamental analysis: Fundamental analysis considers the impact of news events on markets. On MT5, traders can track fundamental data using the in-built economic data and social hub.

• Timeframes: MT5 has more timeframes, from lower to higher. 

• Depth of market: The Depth of Market (DOM) helps traders see the depth of liquidity in any market to make trading decisions. DOM is a unique feature on MT5 that significantly improves trades.

• Backtesting and trading history import: Traders looking to backtest their strategies, indicators, and import prices from third-party sources will find MT5 useful. The extensive backtesting tool helps traders gain confidence and mastery of their trading skills.

• Multiple language support: Traders can access up to 38 languages on MT5.

How To Trade Crypto on MetaTrader 5

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To Start Trading Cryptocurrencies, Follow These Steps:

1. Open an MT5 account with your chosen broker.

2. Enter your login credentials to access the MT5 platform.

3. Once logged into the platform, right-click the Market Watch window and click the ‘Symbols’ tab.

4. Under the 'Symbols' window, choose 'Crypto' from the asset list.

5. Select each cryptocurrency pairing and click 'Show' to add them to the Market Watch.

6. The crypto pairings will now be available for live trading.

Access a World of Trading Opportunities with MT5

Metatrader 5 provides an advanced but easy-to-use platform where trades can explore various markets, trade various instruments, including cryptocurrencies, and track fundamental data. Many traders offer crypto trading through the MT5 platform due to the advanced features available to traders. Explore your favorite broker via MT5 for the ultimate crypto trading experience.