From zero to entry: Your first steps into crypto trading

Starting your journey in cryptocurrency trading can seem intimidating, but it doesn’t have to be. On Deriv, cryptocurrency trading is designed to be accessible and supported by platform features that help you understand the process. You don’t need to own any digital coins or set up a crypto wallet. Instead, you can trade on price movements through flexible tools that suit beginners.

This guide walks you through the basics of how crypto trading works, what makes it different, and how you can take your first steps confidently using Deriv’s beginner-friendly platforms.

Quick summary

• You can trade cryptocurrencies on Deriv using CFDs or multipliers without owning any coins.
• Deriv offers user-friendly platforms for every experience level, from beginners to advanced traders.
• Risk management tools, such as take-profit and stop-loss, can support more structured trade management.
• Everything you need to get started is available in one place. No crypto wallet required.

What makes cryptocurrency trading accessible for new traders?

Cryptocurrency might sound complex, but at its core, it’s just digital money built on blockchain technology: a secure and transparent system that records transactions. Coins like Bitcoin (BTC) and Ethereum (ETH) are traded globally, with prices fluctuating constantly in response to changes in supply, demand, and market sentiment.

On Deriv, you don’t have to buy or store these coins yourself. Instead, you can trade them through Contracts for Difference (CFDs), which let you speculate on price changes without owning the asset. If the market moves in the direction you anticipated, the trade may result in a profit. The same applies if you correctly predict a price drop.

This beginner-friendly approach removes the need for crypto wallets, private keys, and complicated exchange processes.

How do cryptocurrency CFDs work on Deriv MT5?

Think of a CFD as a mirror of the market. When you trade crypto CFDs on Deriv MT5, you’re trading on the difference between the price when you open and close your position, not the asset itself.

For example, if you believe Bitcoin will rise against the US dollar (BTC/USD), you can open a buy position. If the price moves in your favour, you earn based on that movement. Similarly, you can open a sell position if you expect the price to drop.

Because CFDs allow trading in both directions, you can benefit from opportunities in rising and falling markets. You can also start with smaller position sizes, which many new traders use as a way to become familiar with how CFDs react to market movements.

Deriv’s MT5 platform offers a familiar interface, analytical charts, and various cryptocurrency pairs, including Bitcoin, Ethereum, Litecoin, Ripple, and Bitcoin Cash.

Max Matthew Camilleri, Senior Analytics & Automation Specialist at Deriv, mentions:

“Focus on learning how CFDs behave with smaller stakes before scaling up.”

How can you start trading cryptocurrency CFDs on Deriv?

Getting started with crypto trading is straightforward on Deriv. You can begin in just a few steps:

1. Create a Deriv account and open a Deriv MT5 Financial account.
2. Select your preferred cryptocurrency pair, such as BTC/USD or ETH/USD.
3. Set your trading parameters, including your stake, take-profit level, and stop-loss level. You can learn more about these tools in the stop loss and take profit explained guide.
4. Place your first trade and track it through the platform.

For beginners, starting with a demo account is the best way to learn. It gives you access to real-time prices and trading tools using virtual funds, so you can practise without risk. Once you feel confident, you can switch to a real account whenever you’re ready.

What should traders understand about crypto multipliers?

Another way to gain exposure to cryptocurrency price movements is through multipliers trading. Multipliers allow you to amplify potential returns from small price changes, which enables traders to gain exposure to market movements without committing large initial capital amounts, while still carrying significant trading risks.

You can trade cryptocurrency with multipliers using:

• Deriv Trader: a web-based, intuitive platform.
• Deriv GO app: a mobile app for trading anywhere, anytime.

Here’s how it works: you set your multiplier (for example, 5x), and if the market moves in your favour by 1%, your return becomes 5%. Your maximum potential loss is limited to your stake amount, which means your exposure is predefined. However, trading outcomes can still vary based on market conditions.

To manage your risk, you can use tools like take profit and stop loss, which automatically close trades at your chosen levels. These are particularly useful when you’re still learning how markets move.

Ashkan Nemati, Vice President of Trading Applications at Deriv, elaborates:

“Multipliers are excellent for short-term exposure with predefined risk.”

Why is Deriv a great place to start crypto trading?

Deriv is built with beginners in mind. Whether you’re exploring CFDs or multipliers, you’ll find everything you need in one place:

• Simple setup: Open an account in minutes. No wallets or exchanges required.
• Practise with virtual funds: A demo account allows you to experience market conditions without risking real money.
• Smart risk tools: Features like stop-loss and take-profit help protect your capital. Learn more about how multipliers work on Deriv.
• Regulated environment: Deriv operates under multiple licences, providing a transparent and security-focused platform experience.
• Flexible platforms: Choose between web, mobile, and automated trading, whatever fits your style.

With over 25 years of experience in online trading, Deriv offers a reliable path for newcomers to enter the crypto market with confidence.

How do CFDs and multipliers compare for beginners?

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Both options provide different ways to access cryptocurrency markets. CFDs offer flexibility and detailed control, while multipliers provide a faster pace of trading and increased exposure, which can amplify both potential gains and losses.

Paveetra Bhadrika, Deriv Trading Specialist, confirms:

“Beginners can experiment with both CFDs and multipliers to discover which approach aligns with their goals.”

How can beginners manage risk in crypto trading?

Before trading with real funds, it’s essential to understand risk management: the foundation of every successful trading strategy. Managing risk means knowing how much you can afford to lose and how to control losses before they happen.

Deriv’s take profit and stop loss tools are your first line of defence. A take-profit order closes a trade automatically once the market reaches your chosen level. Meanwhile, a stop-loss limits losses if the market moves against you. These features help prevent emotional decisions and keep your trades disciplined.

Another helpful principle is the 1% rule: risk no more than 1% of your total balance on a single trade. This approach ensures you can stay active in the market even during losing streaks, giving you more opportunities to learn.

Kai Zhe, Senior Analytics & Automation Specialist at Deriv, adds:

“Consistency matters more than quick wins. A trader who manages losses wisely will still be trading when others have stopped." 

Take advantage of Deriv’s demo account to practise setting different stop-loss and take-profit levels. Experimenting in a risk-free environment lets you see how these features work in real-time, preparing you for more confident decision-making later on.

What are the next steps for new crypto traders?

One of the most important things for beginners to learn is that cryptocurrency prices can change rapidly. These movements are driven by global events, regulations, and overall market sentiment. Unlike traditional markets, crypto never sleeps, meaning market movements can occur at any time.

Before placing a trade, it is helpful to review the technical analysis tools available on Deriv MT5. Charts, indicators, and historical data can help you understand patterns and trends. Even simple indicators, such as moving averages or Relative Strength Index (RSI), give valuable insights into when a market might rise or pull back.

At the same time, fundamental factors such as new blockchain projects, government policy updates, or major coin listings can also influence prices. Many traders combine both technical and fundamental analysis to make informed decisions.

If you’re new, practise analysing price charts in your demo account before using real funds. Over time, you’ll develop a sense of how crypto markets move and how to manage trades confidently.

Ready to start your crypto journey?

Taking your first steps into cryptocurrency trading begins with understanding how the market works and how different tools function. With Deriv, you can learn at your own pace, practise using virtual funds, and explore the platform features before considering live trading.

Start with a free Deriv demo account that comes with 10,000 USD in virtual funds, explore the platforms, and understand how price movements work. As you gain experience, you can move to live trading when you feel comfortable.