Cryptocurrency trading is one of the most profitable areas in exchange trading at the moment. The main reason for its high popularity is the high volatility of the traded assets. This allows earning almost at any time on virtually any instrument. Therefore, honing your skills on a demo account becomes even more important for experienced traders. For beginners, such accounts help to quickly get acquainted with all the technical nuances. We will tell you how to open demo accounts on the most popular trading platforms further.
What are the advantages of working on a demo account
The main positive aspects of using demo accounts include:
- no need to invest your own funds. Anyone willing can evaluate their skills and start trading on the exchange by completing a simple registration procedure.
- real trading conditions. The only nuance in such trading is conditional funds in the account. But this is often the biggest advantage of demo trading — the ability to completely eliminate emotional factors from your actions. For beginners, there’s no better school.
- full trading functionality preserved. This is especially beneficial for algorithmic traders. A tested automated system on a demo account can be used on real accounts without additional architecture changes.
How to start trading on a demo account
Regardless of the chosen platform, before starting demo operations, registration is necessary. Next, we will look at the most popular cryptocurrency exchanges with demo accounts — Binance, Bitmex, Bybit — on each of which the account opening process is available in Russian.
Binance
Like most major cryptocurrency platforms, this exchange provides traders with separate access to a specially designed portal for demo mode. It is located at testnet.binancefuture.com. A demo account cannot be obtained without registration. When opening the main page, the trader enters the terminal window with the option to log in with their credentials or perform initial registration. The procedure is quite simple — you need to enter your email, create a password, and then confirm registration.
After logging into the test portal, access to trades under real market conditions opens, with a balance of 100,000 conditional US dollars.
This trading is an excellent opportunity to test your skills in operations with cryptocurrency futures traded on Binance. The asset is relatively new, with many nuances. Therefore, dedicating a week or even a few to working on a demo account is a good decision for both experienced traders and beginners who have not previously dealt with cryptocurrency futures contracts.
Binance offers more than 50 futures pairs of the type cryptocurrency — USDT. The most sought-after contracts for a particular trader can be placed on the quick access panel above the price chart. Each asset is characterized by its own chart behavior patterns, fundamental principles of price change, and other important features. Learning all of them in real trading mode is like paying for training for someone else. There’s no point in doing that, because such knowledge can be obtained through demo trading.
Demo account owners have access to tools like the order book, trade history window, depth charts, technical tools, and many other features. The trading terminal window of the exchange is fundamentally different from terminals on other exchanges, including Forex and stock exchanges. Therefore, studying the technical fundamentals of working with the new platform is essential for every new player.
Especially since the tools offered by this exchange are increasingly used in hedging strategies. This means their popularity will only grow.
Bitmex
Another popular cryptocurrency exchange with a demo account. The test platform works similarly — there is a separate section testnet.bitmex.com, where you need to create an account for a demo account. The registration fields are the same, as is the account confirmation procedure.
The trading window after the first login looks more familiar to those who have tried the test access on Binance. Demo trading will be useful for cryptocurrency players because this exchange uses different tools. The first is that orders are closed on a P2P principle, meaning between equal traders, with their own rules for concluding deals. By developing a trading strategy for tools of the same nature but different financial classes, a trader can form highly complex trading strategies with high profitability potential. And demo trading is perfect for testing such opportunities.
By default, each test account is credited with 0.01 XBT — the conditional cryptocurrency unit of Bitmex. Everyone has the opportunity to receive additional units for free.
Bybit
The test account is opened through the familiar registration process on a separate portal for demo accounts — testnet.bybit.com
In this mode, the user can master all the intricacies of working with the platform, study the arrangement of information windows, and customize them as desired.
Trading on a demo account replaces many detailed trading books because practice is worth more than anything else.
Advantages of trading on a test account
The demo versions of the above sites differ from each other, so starting your “crypto” trading journey on the best crypto exchanges described earlier will make it easier for traders to learn new markets and platforms later.
All manual trading capabilities can be easily transferred to an automated trading system, as the API request functions on test portals retain their functionality and are indistinguishable from real sites.
Mastering all trading skills on a demo account largely guarantees a reliable foundation for earning on such a volatile and margin-based market as cryptocurrencies.
