**If you are using MT4, then try the following Formula:**

Pip Value = lots x Volume x 0.01 (only for Cryptocurrency with 2 decimals for example BTC value = 4200.**00**)

Volume: units of the desire cryptocurrency per lot

Important: You must know how many BTC are included in 1 lot, and it depends on your Broker. The difference between trading with Forex and trading with Cryptocurrencies is that the Volume (amount of currency per lot) is different for each Broker in Cryptocurrency but it is the same for all Brokers in Forex (with Forex 1 lot is always 100,000 units of the base currency). The second important point is to know how many Pips you want to trade of the desire cryptocurrency. For example, BTC moves at least 4000 pips normally per day. If the actual BTC value is 4,200.00 USD and after one hour its value is 4,220.51 USD, it has moved 2051 Pips. 1 pip = 0.01. Once you know that, then use the formula.

Example 1:

Broker A: 1 lot = 10 BTC and I want to buy 1 lot and trade 5000 pips (Stop loss 5000 pips under the actual price). BTC actual price 4216.71 USD, my SL 4166.71 USD (5000 pips)

Pip value = lots x Volume x 0.01

Pip Value= 1 x 10 x 0.01

Pip Value= 0.1 USD

If I want to trade with 5000 pips, then 0.1 USD x 5000 = 500 USD. That means that I can win or lose 500 USD.

Example 2:

Broker B: 1 lot = 1 BTC and I want to buy 1 lot and trade with 5000 pips. BTC actual price is 4216.71 USD, my SL 4166.71 USD (5000 pips)

Pip value = lots x Volume x 0.01

Pip Value= 1 x 1 x 0.01

Pip Value= 0.01 USD

If I want to trade with 5000 pips, then 0.01 USD x 5000 = 50 USD. That means that I can win or lose 50 USD.

If you want to trade with other cryptocurrencies, you can use the same formula. ETH moves at least 850 pips per day. If ETH value is 116.00 USD and after one hour its value is 124.52 USD, it has moved 852 Pips. 1 pip = 0.01.

Example 3:

Broker A: 1 lot = 100 ETH and I want to buy 1 lot and to trade 800 pips (Stop loss 800 pips under the actual price). ETH actual price 116.33 USD , my SL 10.33 USD (800 pips)

Pip value = lots x Volume x 0.01

Pip Value= 1 x 100 x 0.01

Pip Value= 1 USD

If I want to trade with 800 pips, then 1 USD x 800 = 800 USD. That means that I can win or lose 800 USD.

Example 4:

Broker B: 1 lot = 1 ETH and I want to buy 1 lot and trade with 800 pips. ETH actual price 116.33 USD , my SL 10.33 USD (800 pips)

Pip value = lots x Volume x 0.01

Pip Value= 1 x 1 x 0.01

Pip Value= 0.01 USD

If I want to trade with 800 pips, then 0.01 USD x 800 = 8 USD. That means that I can win or lose 8 USD.

**Now, if I know how much money I want to risk, how can I know how many lots of BTC or ETH do I have to buy?**

Just use the following Formula:

Lots= Risk/ Stop limit (pips) x pip Value

Important: You must know how many BTC or ETH are included in 1 lot with your Broker

Example 1:

I want to buy BTC but just win or lost 100 USD with a stop loss of 6000 pips. My Broker is A, that means that 1 lot=10 BTC. The actual price of BTC is 4216.71 USD, my stop limit is 4156.71 USD (6000 pips)

Pip value = lots x Volume x 0.01

Pip Value= 1 x 10 x 0.01

Pip Value= 0.1 USD

Then,

Lots= Risk/ Stop limit (pips) x pip Value

Lots= 100 USD / SL 6000 pips x 0.1 USD

Lots = 0.16

That means that I must buy 0.16 lots with Broker A in order to win or loss 100 USD with a SL of 6000 pips.

Example 2:

I want to buy BTC but just win or lost 100 USD with a stop loss of 6000 pips. My Broker is B, that means that 1 lot=1 BTC. The actual price of BTC is 4216.71 USD, my SL is 4156.71 USD (6000 pips)

Pip value = lots x Volume x 0.01

Pip Value= 1 x 1 x 0.01

Pip Value= 0.01 USD

Then,

Lots= Risk/ Stop limit (pips) x pip Value

Lots= 100 USD / SL 6000 pips x 0.01 USD

Lots = 1.66

That means that I must buy 1.66 lots with the B Broker in order to win or lose 100 USD with a SL of 6000 pips.

Example 3:

I want to buy ETH but just win or lost 100 USD with a stop loss of 800 pips. My Broker is B, that means that 1 lot=1 ETH. ETH actual price is 116.33 USD , my SL 10.33 USD (800 pips)

Pip value = lots x Volume x 0.01

Pip Value= 1 x 1 x 0.01

Pip Value= 0.01 USD

Then,

Lots= Risk/ Stop limit (pips) x pip Value

Lots= 100 USD / SL 800 pips x 0.01 USD

Lots = 12.5

That means that I must buy 12.5 lots with the B broker in order to win or lose 100 USD with a SL of 800 pips.

The same for other cryptocurrencies.

**Important note:** The spread for BTC is normally high for regulated Brokers. Take in mind that the spread range nowadays can be 1500-6000 pips (with Coins with 2 decimals like ETH = 101.**00**). That mean that you must trade with higher pips in order to take profit. You can visit the web page of your broker in order to know the spread.