Why use crypto demo modes? Why not just place all your life savings on a stock, you say? You only live once! Life should be fun. Well, unless you want to end up like this guy you’ll probably want to use a demo account before you trade. I’m more or less sure that was staged and that he was using a demo account but you’ll be surprised by how quickly that can happen in real life. Unless you’re God or Antti Pendikainen, pack your parachute before you HALO jump, not during! If you’re looking to become a crypto trader, demo accounts are your first port of call.
- What are demo trading accounts?
- Where to get a free crypto demo account?
- What to remember when you choose a free demo account
- Minuses of demo trading accounts
- Pluses of demo trading accounts
- Why free crypto trading demo accounts are useful for trading Bitcoin
- Best crypto trading demo-style
- Crypto exchange demo accounts: how to start looking
What are demo trading accounts?
If you ever played Counter-Strike, you know how important it is for a soldier to try simulators before they go into battle.
These days, evolution isn’t waiting around, so, thanks to VR, surgeons train on VR-simulated people, not real ones. Whew! What a relief! Imagine if you have a heart attack and you very vaguely hear: “It’s ok, (insert gender-appropriate pronoun), you’re in a hospital, everything’s going to be fine. You’re going to need 7 hours of surgery and our intern is on the job. She’s more or less certain about what she’s doing. Oh crap, did yoг just drop a scalpel in there?”
It’s a real relief augmented reality is there even if only for simulating surgery for new doctors. And it’s just as much a relief if you can start trading with virtual money using exactly the same platform so you can figure out how everything works before poop hits the fan.
Glossary: sometimes demo trading is called paper trading. Or sissy trading. But only by jerks.
Crypto demo trading accounts are part of the exchange you chose to register on. The exchange give you some currency (for example, $10 000), and you can do whatever you want with it (except buy cocaine and guns). After you simulate-traded you won’t get your winnings out but you’re also not losing money at the end of it, which is nice. Here’s an example:
“Demo crypto exchange accounts are funded with simulated money, allowing you to gain trading experience without risking real capital. This allows you to craft strategies and build confidence while getting familiar with market conditions. Also, it’s an effective way to test-drive potential software.”
Where to get a free crypto demo account?
When you’re choosing a place to create a free demo account, you need to be sure you’re going to sign up at a reliable exchange.
First, you don’t want to sign up and give away your personal information to someone who’ll use it maliciously.
Second, you might as well choose an exchange that isn’t associated with hacks and scams. The Internet remembers everything. Choose an exchange that you like and that has a good record! There’s a good chance you’ll stick with this exchange when you start trading with real money, so you might as well get a live demo trading account at a reputable exchange you’re making long-term plans for.
What to remember when you choose a free demo account
Remember that when you’re choosing an exchange what you’re looking for first and foremost is security. Where does the exchange come from? London is a good birthplace for many a reputable project. So is LA. Where someone comes from will tell you a lot about them.
Crypto exchanges are a lot like ninjas. Maybe too much for my liking. They’re fascinatingly interesting, have a lot of money, and sometimes disappear into thin air. Just like the protagonist of Ninja Assassin, you want to never forget where these people’s roots come from.
Also, don’t forget to do a deep search for feedback. In this day and age, no crime goes unnoticed. Especially with the introduction of blockchain. Look for reviews, but don’t stop at the top — a thorough search for information can reveal surprising results.
Minuses of demo trading accounts
At the end of your hard day’s trading, you have no profits. Damn it! If you’d done that in real life you’d be rich. Shucks!
The problem with crypto demo accounts is that, of course, you put in the work and you don’t get a result in the end. Well, that’s the trade-off you make for 0 risk. That’s why we encourage you to be brave (but not too brave).
Pluses of demo trading accounts
- Demo trading accounts allow you to practice trading risk-free and keep a cool head. That makes a huge difference to your trading in real life. Nothing constitutes experience. And I mean nothing.
- You can also view what happened in the past, check out your strategy, and see what you can do better.
- Use tools like RSI and Parabolic SAR and see how much of the time they turn out to be right and if they’re actually as good as the hype (spoiler: they’re not).
- Use different coins and find out what kind of volatility they have, how they move, and generally get a feel for them.
- Learn to spot patterns (oh yeah, I have to get a shampoo).
- Learn how volatility in crypto is different than in other markets (pretty much the same difference as between horse racing and bull riding).
- Get your adrenaline levels down to a minimum and learn how to assess the situation without clouded judgment.
- See if the reviews are any use. There is a difference between reading the reviews and learning what the platform is about in real life.
- Try technical analysis and find out how much it sucks. Check out fundamental analysis and find out it’s even worse. Learn that an MBA and a screenful of indicators still don’t guarantee anything and that at the end of the day all you’ve got are guesses, albeit educated, and assumptions. And you know what they say about assumptions.
- Have a go at testing your own strategies. Do you think you’ve spotted a vulnerability in code no-one noticed before? Think you can predict where the price is going for sure? Mixing RSI and 3 moving averages gets the right result every time? See if that’s true without having to re-mortgage your house.
- Get a shot at live trading and find out all the best deals actually happen in darl pools and between bots and that all the wealth has already been distributed and that you’re only getting crumbs
- Start losing money rapidly for real and sign up for therapy way in advance of real heartbreak (smart move).
- Learn that all money is, in essence, fake money that can be made out of thin air. While the government is printing trillions so now the USD is worth 60 times less than in the fifties — unlike Bitcoin, which is indeflatable.
Why free crypto trading demo accounts are useful for trading Bitcoin
Having altcoin fantasies? That’s not a bad idea (some altcoins kick Bitcoin’s ass — a lot), but Bitcoin is still everyone’s pleasure of choice. After the long history of halving, Bitcoin historically showed an increase from $11 to $1000 in the year after the first, from $600 to $20000 after the second, and… what will happen after the third, which is nearly upon us? No-one knows for sure but we’re pretty sure the drama will be pretty spectacular.
Learn how to trade using a demo account — and if you’re going to trade, probably using BTC will be one of the most memorable experiences so far. After a chocolate and banana sandwich, the rise from $0.05 to $20 000 is the most dramatic experience in my life.
Best crypto trading demo-style
The best crypto exchange with a demo account combines the characteristics of being safe, well thought of by the community, and providing complete transparency. Do your own research and see what bonuses you can get meanwhile.
Crypto exchange demo accounts: how to start looking
Where to go for crypto trading demo accounts? One really useful example of probably the easiest and safest demo trading accounts around is Nominex, a new-generation exchange that managed to provide staggering results in the field of “entertrading” in the short time it’s been around.
Once you register in under 20 seconds, turning on the Demo mode is a matter of less than a second. The sleek and sexy UI means you’ll have 0 difficulties figuring out where anything is, the referral program with unlimited levels to gain profits from will work for you while you sleep, 4 types of bonuses will incentivize you even more.
That’s only the beginning of a long list of benefits that include ridiculously low fees, constant discounts, free money, and tournaments — probably the best opportunity to learn demo trading and earn real money in this line of work.
Try it out and share this article if you liked learning all about cryptocurrency demo accounts!