How to Trade Crypto CFDs on Eightcap Broker? Explained

Eightcap

Regulation: SCIB, ASIC, CySEC and FCA

Min dep:$100
Leverage: 1:30
Spread: Variable

Trading Critique Score

8.4 Out of 10

Account type: Standard, Raw, and TradingView account
Assets: Equities, Indices, Futures, Commodities, Crypto
Platform: MT4 and MT5

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When you trade cryptocurrency CFDs with Eightcap, you are speculating on the price of the crypto, yet not owning the actual coin. Hence, you won’t need a wallet for crypto CFD trading.

Eightcap offers over 100+ crypto derivatives to trade in CFDs and offers tight spreads that are up to five times lower than those of other top brokers. This article is a crypto CFD guide where we discuss how to trade crypto CFDs on the Eightcap broker.

What are crypto CFDs, and how Eightcap supports them?

Trading on crypto CFDs refers to speculating on the price movement of the cryptocurrency without owning the underlying asset. Since cryptocurrencies have the largest price movements, they provide a lot of trading opportunities.

Crypto CFD trading has the ability to open long and short positions with small amounts of capital. Can I trust Eightcap as a regulated CFD broker? Yes, Eightcap is highly trustworthy and regulated by top-tier authorities like SCB, ASIC, CySEC, and FCA.

Step-by-step guide to trading crypto CFDs on Eightcap

Here is a practical, step-by-step guide to Eightcap crypto trading in CFDs.

Open a trading account

Open a trading account by providing your details and relevant documents. Choose an account type that fits your trading style. If you want to practise trading crypto CFDs, you can try Eightcap’s free demo account, which provides you with $100,000 virtual funds with access to real-time price charts. Then fund your Eightcap account with the allowed minimum amount of $100.

Choose your trading platform

Choose your crypto CFD on the award-winning MT4/5 and TradingView and access many features across the platforms.

Choose the asset

Have a trading plan in place already that includes your financial goals and strategies. Navigate to the “Crypto” group and click “Show” on the pairs you wish to trade. The chosen pairs will now appear in your market watchlist.

Check cost specifications

It is essential to check important factors like spread, minimum trade size, leverage, and overnight financing on the instrument as they substantially affect your profit potential. Spreads can widen in volatile markets, and you can view them in the platform on Eightcap’s trading costs page.

Chart analysis

Drag and drop the cryptocurrency pair on your chart window. Use indicators, drawing tools, and other chart patterns to find the future direction of the price. In addition, research market news and events to reassure the price direction.

Place the trade

• Double-click the crypto pair you want to trade in the Market Watch, or you can click the “New Order” button in the platform toolbar.
• Enter the size of your trade in lots and set it to Market Execution.
• Enter the stop-loss price level to limit your loss when the market moves against your prediction. Enter the “Take Profit” price level where the trade should automatically close to secure your profit.
• Click “Buy” if you want to go long and “Sell” if you want to go short.
• Monitor your position in the “View Trade” section, where your open positions will appear. You can see the order details like entry price, current price, running profit & loss, and margin used.
• Your position will close automatically when the price hits your pre-set stop loss or take profit level. Or you can close the trade manually at any time by clicking the “Close Order” button in the toolbox window.

Key risks and risk management in crypto CFD trading

The key risks involved in crypto CFD trading include the following:

• Cryptocurrency prices are generally volatile in nature, with the largest movements and they carry the highest risk to trade. Your stop loss may get hit quickly, and slippage may occur often.
• You do not own the underlying value of any cryptocurrency you trade, and consequently, you will not be able to make purchases or transactions using it.
• Using leverage adds to your risk and may lead to significant losses on adverse market movements. CFDs allow leverage of 1:2, where small price movements get multiplied.
• During low liquidity or news, spreads widen, making you enter at a worse price.
• Overnight swap charges for days accumulate large fees.
• In extreme volatility, you may face delays, requotes, and platform freeze issues that may affect price execution.
• Past performance of strategies is not an assurance of future performance.

Here are a few ways to manage risk in crypto CFD trading:

• Do not use the full leverage available. This practice alone reduces most account blowups.
• Always use a stop-loss as this limits your trading loss.
• Use the position size calculator to determine your trading position size, as this prevents oversized trades.
• Avoid trading during high-impact news as spreads and slippage explode during these times.
• It is highly risky to hold leveraged positions overnight due to unpredictable nighttime moves. If you still want to hold, reduce the position size or move the stop to the breakeven level.
• Always prefer highly liquid crypto pairs to trade safely. It is better to avoid low liquid altcoins.
• Set alert for price, daily loss limit, and maximum number of trades per day. If you hit the daily loss limit, stop trading.

Can beginners trade CFDs safely on Eightcap? Yes, Eightcap is a multi-regulated broker, and beginners can experience trading CFDs safely. However, CFDs are high-risk instruments and carry substantial risk of loss by their nature.

Why choose the Eightcap broker for crypto CFD trading?

The Eightcap CFD broker is broadly preferred for crypto CFD trading for the following key features:

Wide range of assets

Eightcap offers over 100+ crypto CFDs, including major coins like BTCUSD (Bitcoin), ETHUSD (Ethereum), and altcoins like ADAUSD and SOLUSD (Solana).

Trading platforms

Eightcap offers industry-standard platforms like MetaTrader 4 (MT4), MetaTrader 5 (MT5), and directly via TradingView with advanced charting tools and indicators.

Trading hours

Eightcap’s crypto CFD pairs are typically available for trading 24/7.

Trading flexibility

As you buy crypto CFDs to profit from a rising market, you can also easily sell to profit from a falling crypto market.

Compare the Eightcap broker with the other brokers, such as Eightcap vs Chales Schwab.

Conclusion

Trading CFDs, especially crypto CFDs, is high-risk, no matter which broker you are trading with. Eightcap offers a significant range of over 100 crypto pairs for CFD trading. Eightcap crypto CFD traders may minimize risk by:

• Using proper risk management, as crypto is very volatile in nature.
• Being careful with leverage, as it carries a higher risk.
• Using the demo first for practicing.
• Being aware of regulatory limits.

Frequently Asked Quesyions (FAQs)

1.    What is the minimum deposit for Eightcap?

The minimum deposit for opening an Eightcap account is $100.

2.    What are Eightcap Trading Hours Explained for Forex and CFDs?

3.    Does Eightcap broker offer cryptocurrency CFDs?

Yes, Eightcap broker offers over 100+ crypto pairs for CFD trading.

4.    How much does CFD trading cost on Eightcap?

Eightcap does not charge any trading cost for CFD trading; however, fees may apply to open positions held overnight.

5.    What leverage does Eightcap offer for CFDs?

Eightcap offers 1:2 leverage for CFD trading.

6.    Which markets can you trade with Eightcap CFDs?

Eightcap allows you to trade CFDs in forex, commodities, indices, shares, and crypto.

7.    Can you make a living from Eightcap CFD trading?

CFD is a high-risk financial asset, and making a living from Eightcap CFD trading is not guaranteed. Even professional day traders and experienced CFD traders hardly make a stable income from Eightcap CFD trading.

8.    Can I use Eightcap CFD trading on mobile?

Yes, Eightcap mobile apps such as MT4, MT5, and TradingView allow you to trade CFDs on mobile.