DIGITAL CURRENCY TRADING

FOR BEGINNERS:
THE ULTIMATE GUIDE
 Who are we?

Empowering you to better trade on the right market

opportunities.

For more than 10 years, we’ve purpose-built our platform

and services to help you trade effortlessly and better on
the right market opportunities. Our Vantage ecosystem
is not only a place for you to trade in financial assets, but
a place for you to learn, explore and connect with other
like-minded investors.

We are an award-winning, multi-asset broker

headquartered in Sydney, with over 10 years of market
experience, operating in 172 countries. With more than
1,000 employees in over 30 global offices, we are there to
support you in your trading experience.

At Vantage, we hold ourselves to the highest regulatory

and security standards so you can trade through us with
absolute peace of mind.

Our simple and intuitive trading platform allows you

to trade over 300 different CFDs on instruments no
matter where you are. Our ultra-fast execution, stable
performance, and round-the-clock dedicated customer
service support, ensures that with Vantage, you have the
edge to trade better on market opportunities.Trade with
an edge.

trade smarter @vantage.

2|
CONTENTS
Basic information about Cryptocurrencies
04
What are Cryptocurrencies 04
What is the Blockchain 05
Market awareness 05
Mining Bitcoin 06

Some popular Tokens explained

07
Ethereum 07
Ether 08
Dogecoin 08
Shiba Inu 09
Solana 09
Eos 10
Litecoin 10
Ripple 10

What influences markets

11
Long term views 11
Supply and demand 11
Example: Dogecoin Hype 12
Example: China Crypto ban 12

How to trade Cryptocurrencies with Vantage

13
Which pairs can you trade? 13
Trading with leverage 13
Trading Cryptos with the Metatrader 4 14
Trading Cryptos using Vantage Protrader 15
Metatrader 4 on Mobile 17

Different Order types explained

20
Market Order 20
Limit Order 20
Stop Order 20
 Basic information about
Cryptocurrencies

What are Cryptocurrencies

Cryptocurrency is a virtual currency that uses blockchain technology and has been designed
as a medium of payment and was first introduced in 2009 by a pseudonym called Satoshi
Nakamoto. The general idea is that Cryptocurrency is a decentralized way of making
payments and is independent from governments, central authorities or any other control
bodies. On the other hand, transactions involve only very low fees if even and there won’t
be any international charges in transferring money. In general, you also have access to
your money 24/7. That said, no additional paperwork is needed to make any transaction
and you would only need to create an account or a digital wallet to be ready. With the use
of an internet connection anyone can trade, spend or borrow money around the world.
Transactions are done peer to peer, which means no intermediate person like a bank, broker
or government is involved in a transaction using Blockchain technology.

4 | Basic information about Cryptocurrencies

 What is the Blockchain

The Blockchain can be explained as a network where all transactions are stored and
distributed in the form of a public digital ledger. The information is saved and distributed
across the entire network in a chronological order and at the same time also replicated
to prevent hacking. So, each node on the network contains the same information to make
the system abundant and safe. Transactions from the past can’t be adjusted or deleted.
All information is being saved in an encrypted way, which is why the currency is called
Cryptocurrency. The transaction details are stored in containers on the network which are
called blocks.

Market awareness

After big corporations have been made aware of the buzz around Cryptocurrencies
now also payment solutions companies like PayPal have stepped forward to invest into
Cryptocurrency and to take part of the growing market. Famous individuals also among
investors supporting the technology as they see the advantage and security compared to
traditional money.

5 | Basic information about Cryptocurrencies

 Mining Bitcoin

The process of mining Bitcoin is quite expensive. It describes the work of verifying Bitcoin
transactions and recording them to the public Blockchain network. A lot of electricity and
time is needed for the calculating power to “mine” new coins. Special servers are needed
as the faster the process can be done the faster new blocks can be added the blockchain.
These transactions are verified by Bitcoin users. The maximum number of coins that can be
mined due to the mathematical equation is limited to 21 millions. This difficult mathematical
puzzle is called proof of work. The miner who serves this puzzle the fastest will be rewarded.

Currently about 19 million coins have been mined. A miner will be rewarded with 6.25 Bitcoins
for a block being added to the blockchain. This amount halves every four years. The last
Bitcoins will be mined in the year 2140, according to the design of the network. In technical
terms there are three concepts of the Blockchain: the system is based on a distributed public
ledger, uses a SHA – 256 encryption and works with proof of work algorithm.

Fast peer to peer All information is

transactions open to the public

No counterfeiting Advantages Low fee

possible of Bitcoin transactions

Decentralized
process

6 | Basic information about Cryptocurrencies

 Some popular
Tokens explained

Ethereum

Bitcoin can be described as digital money and Ethereum can be explained as a

decentralized platform which runs the smart contracts without any downtime, fraud or third-
party interference. Ethereum itself is the technology which also makes use of the blockchain.

The most important feature of Ethereum is the security it provides. It is almost impossible to
tamper with the transactions in the block or to add any fraudulent blocks in the network. As
well the big community of Ethereum is a big plus as it has attracted a lot of attention from
people all over the world, which also includes corporations. Due to the friendliness of the
platform various companies use it to create and test applications on the network.

On another note, Ethereum can be attractive for companies to use it for Asset insurance.

Compared with Bitcoin a significant advantage is the processing speed. While Bitcoin needs
ten minutes, for a block to be finished in Ethereum just a few seconds are needed.

7 | Some popular Tokens explained

 Ether

As the Ethereum network is not free and requires computing power to be in use, Ether
is a solution to the issue of payment explained like a bond or other security. It can also
be explained as an incentive that the client of the platform pays to execute requested
operations. In simple words Ether is a Cryptocurrency of the Ethereum network.

Dogecoin

Dogecoin is an Altcoin. Altcoins are coins, which are alternatives to Bitcoin and have been
created thereafter. So other Cryptocurrencies apart from Bitcoin are Altcoins or alternative
digital coins. At some point thousands of traders have gotten together online on social
media platforms buying certain stocks and hence pushing prices up for some in a meme
stock frenzy. The probably most famous example in the Crypto market has evolved around
Dogecoin, which also had a tremendous run in 2021. After trading at a fraction of a cent the
market had moved up initially more than 950% and surged to a market cap of about USD 10
billion.

Dogecoin is an open-source peer – to – peer Cryptocurrency and was invented by

two software engineers. It also works on a decentralized and secure environment and is
completely anonymous. The mining process works similarly where transactions are being
validated by participants of the network and hence being rewarded with coins for their work.
The Cryptocurrency was invented in 2013 and not meant to be of much practical use. People
in the community used it to freely play around in the Cryptocurrency space until the Reddit
community took note of it sending the price soaring.
Open a live account here and start trading digital currency CFDs!

8 | Some popular Tokens explained

 Shiba Inu

This coin was created in late 2020 by a unanimous person in India. It was created as an
altcoin of Dogecoin. It was named after a Japanese dog called Shiba and also came
popular after the surge of Dogecoin. It is also a decentralized, community – building
Cryptocurrency developed within the Shiba Inu ecosystem. The technology used is the
Ethereum blockchain whereas Dogecoin in comparison is using Bitcoin technology.

Solana

Solana is a Cryptocurrency which is used to pay for transactions on a decentralized

computing network. The technology aims to increase blockchain scalability by combining
proof- of- stake and proof- of- history consensus. The technology promises to be capable
of 50.000 transactions per second while still operating on a decentralized network.
The Solana platform was established in 2017 by an engineer who previously also worked
for drop box knowing about data- compression methods. The idea behind the technology
was to increase transaction speed and slow consensus algorithm in Ethereum and Bitcoin
blockchains. Also, the increased scalability for practical use behind the distributed protocol
was important.

9 | Some popular Tokens explained

 Eos

Eos started in 2017 and is a blockchain- based, decentralized platform. It is used to develop,
host and run business applications. The Eos Tokens are used on the platform as a payment
system. Eos is a direct competitor to Ethereum and wants to offer faster transactions. The
architecture is aiming to offer millions transactions per second, which is not the reality.

Litecoin

Litecoin launched in 2011 by a former Google engineer. It was adapted using Bitcoin’s open-
source code but with some modifications. It is similar to Bitcoin as it is not controlled by any
central authority and offers faster block generation compared to its counterpart. Litecoin is
considered as one of the first altcoins, derived from the original open- source code. At first it
was considered as a strong competitor to Bitcoin but since the Crypto market has seen a lot
of competitions this has faded over time.

Ripple

Ripple acts as a Cryptocurrency and also digital payment network for financial transactions.
It was released in 2012 and initially created as an asset exchange and remittance system
making it comparable to the SWIFT system for international transfers. Instead of using
blockchain mining, it uses a consensus mechanism, via a group of servers owned by banks
to confirm transactions. The network uses less energy than Bitcoin and transactions are
confirmed in seconds and also cost very little.

10 | Some popular Tokens explained

 What influences markets

Long term views

Market fluctuations are always in the game whereas some investors assume that falling
markets may offer better market opportunities as soon as the market bounces back.

Supply and demand

Another factor why Cryptocurrencies move is determined by supply and demand just like
anything else that people want. If the demand increases faster than the supply prices will
rise. For example, if there is a drought, the price of grain increases if the demand does not
change. The same principles also apply for Cryptocurrencies as they gain in value when
demand rises faster than supply.

However, there are some differences on the supply side. Some currencies, such as Bitcoin, will
have a limited supply of 21 million Bitcoins, whereas Ether will not have a market cap. Some
others have mechanisms in place that reduce the amount in circulation in order to prevent
the supply from growing too large causing inflation. In this case tokens will be sent to an
unrecoverable address on the blockchain.

The demand for a token can increase when the use of a currency is gaining more awareness
or when the utility of it increases. Also, the investment side should not be underestimated as
the supply remains limited. At the beginning of 2021 the price of Bitcoin has gone up after
institutional investors stepped in to the market.

11 | What influences markets

 Example: Dogecoin Hype

As mentioned above, Dogecoin was invented without a practical reason in the first place.
In 2021 traders globally used the online platform reddit to get together and speculate on
several assets. Back then Dogecoin was traded for less than 0.006 USD.

Example: China Crypto ban

China has banned payment companies and financial institutions from providing any
services related to Cryptocurrency transactions. The government does not allow providers
to offer any services including registration, trading, clearing and settlement related to
Cryptocurrency. During the time of announcement prices of some common Cryptos including
Bitcoin had gone down by almost 30%. The selling pressure increased when Tesla had stated
that they won’t accept Bitcoin payments any more due to environmental concerns.

12 | What influences markets

 How to trade Cryptocurrencies with
Vantage

Which pairs can you trade?

The Crypto market is famous high volatility.

Without the need for a digital wallet Vantage
offers you access to markets and even trade
the Crypto market with leverage. In most
cases the price is valued against traditional
FIAT currencies such as the Euro or the Dollar
but Vantage also offers you other types of
tradeable currency pairs. On our platforms
Cryptocurrencies can be traded against
each other e.g. Bitcoin against Ethereum
or Ethereum against Bitcoin Cash but also
against commodities like Gold.

Trading with leverage

Vantage offers you the opportunity to Example:

trade Cryptocurrencies using leverage. You like to buy one BTCUSD (Bitcoin in US
In this case you only need to put up a Dollar), which currently trades at 30.000
small amount into your trading account USD. In order to make this trade you only
as a deposit. The profit or the loss will be need to deposit 600 USD in your trading
calculated based on the total size of your account or the equivalent in another
position so leverage can affect your profit account currency. This deposit can be
as well as the losses if the market moves called margin and is juts 3% of the overall
against you. trading volume. Just access to the world of
Cryptocurrencies now.

13 | How to trade cryptocurrencies with Vantage

 Trading Cryptos with the Metatrader 4

Please make sure that you open the respective chart of

the Cryptocurrency, you like to trade in your Metatrader
4 platform. You can do so by clicking on the “Market
Watch” menu button in the general menu on top of the
program to get an overview of all tradeable assets.

In case you do not have any Cryptocurrencies in the list, just simply use the right click on your
mouse and choose “Symbols”. The product will be visible in the Market watch area, once it is
marked and activated choosing “Show”.

After seeing your desired Cryptocurrency in the Market

Watch window, you can use the mouse right click and
choose “Chart Window” to see the chart. Alternatively,
you can also click the right mouse button and choose
“New Order” (Shortcut: F9) to trade the market directly.

Should you have chosen to trade a Cryptocurrency

pair, you can then proceed to the Terminal Section
(Shortcut: Ctrl+T), where you will find all open trades
listed.

14 | How to trade cryptocurrencies with Vantage

 Trading CFDs on Vantage Protrader

After opening the browser of your choice on

your workstation please proceed to https://
protrader.vantagemarkets.com/ and login
to your account using your Login data. After
the trading platform opens you should see
available assets on the right side of the
screen. Use the dropdown menu and head
to the Cryptocurrencies section.

After opening the section you should be

able to see all available Cryptocurrencies
tradeable with Vantage markets. With a
simple click on a given Cryptocurrency
pair you can directly open the chart in the
charting area. Trades can be placed directly
by right clicking in the charting area.

After choosing “Trade” > “Create New

Order” you will be able to enter into a new
trading position.

In this case we chose to purchase 1 Lot

(equals to one contract) of BTCUSD. The
market currently trades around 29,000 USD.

15 | How to trade cryptocurrencies with Vantage

 :elpmaxE

Example: We set the Stop Loss to 20,000

USD and Take Profit to 40,000 USD. Should
the market not move in our favor, the trade
would automatically be closed to limit
our loss. On the other hand, if the market
would move to the upside, as we expect,
the trade would be automatically closed at
the price of 40,000 USD. By clicking “Buy 1
BTCUSD MKT this trade would be executed
as a market order.

The open trades can be seen below the

charting area in the Account Manager
section. You can close your trade by right
clicking on any position or adjust Take
Profit and Stop Loss levels to protect your
positions by right clicking on any trade.

A new window will appear on the right side

of the screen where you are able to adjust
the parameters of the trade as needed.

16 | How to trade cryptocurrencies with Vantage

 Metatrader 4 on Mobile

You can download the Metatrader 4 application though the App Store for iPhones or Google Play
for any Android Phones. The login data will be the same as for your MT4 on your computer.
Once you open the software on your smartphone, you would first need to login using your login
data. After that, the app will open, showing you all products which you have activated.

If you wish to add more products from the list of assets that Vantage offers just tap on the + sign
on the top right.

17 | How to trade cryptocurrencies with Vantage

 Please head to the Crypto Currency
area and activate the currencies we like
to trade.

18 | How to trade cryptocurrencies with Vantage

 You can simply tap on one of the added currencies and the options to trade, view the chart or
details information will appear.

If you choose the “Trade” option we will be directed to the screen where you can enter out
trading parameters. In the top center field, you can enter the Lot size can be used for your
position. 1 Lot in the example equals to one contract of Bitcoin – Eur, which is 26,909 EUR.

Buy tapping the “Sell by Market” or “Buy by Market” field, the order will directly be executed.

19 | How to trade cryptocurrencies with Vantage

 Different Order
types explained
Let us now examine the different order types we can use with Vantage.

Market Order Limited Order

A market order refers to an order, If you like to trade the market

which will be directly routed to above or below the actual
the market, at whatever price market price, you can use limit
the market might trade at orders. A limit order is an order
that given time. During highly to buy or sell an asset at a
volatile news events prices might specific price or better. A buy
fluctuate more and our order limit order means that the order
might not get executed at our can only be executed at the
preferred price. limit price or better This means
that a sell limit order can only
be executed at the limit price
or higher. If you would like to
buy BTCEUR at 25,000USD for
example, you need to tap on
“Market Execution” and adjust
this parameter to “Limit Order”
and then enter the price.
It might be interesting to also set
an expiration time for the limit
orders which can be done in the
last field.

Stop Order

A stop order is an order to buy or

sell once the price of the asset
reaches a specific price, known
as the stop price. If at 29,000
USD and you would like to wait
before you buy then you can
add the stop order at 32,000
USD. On the other hand, you
could only be keen to sell the
currency at 25,000 USD, when
the market starts resuming its
downtrend.
It might be interesting for you to
also set an expiration time for
the limit orders and you can do
so in the last field.

20 | Different Order types explained

 Vantage Global Limited is authorised and regulated by the VFSC
under Section 4 of the Financial Dealers Licensing Act [CAP 70] (Reg.
No. 700271) and is registered at iCount Building, Kumul Highway, Port
Vila, Vanuatu.

Email: [email protected]

Your capital is at risk. VFSC Registration no. 700271.