Dec 17, · Bitcoin forex brokers may allow you to trade bitcoin currency pairs like BTC/USD, bitcoin CFDs, or both. It’s important to know the differences between these two trading opportunities. Bitcoin currency pairs work in the same way as traditional currency pairs, like EUR/USD. bitcoinlife24.de is a trading name of GAIN Global Markets Inc. which is authorized and regulated by the Cayman Islands Monetary Authority under the Securities Investment Business Law of the Cayman Islands (as revised) with License number But Bitcoin has gone well beyond its original purpose to where it can now be traded as a speculative financial instrument in as simple and straightforward a manner as trading any traditional currency. The creator of Bitcoin designed the cryptocurrency to be capped at a total mined quantity of 21 million Bitcoins, in perpetuity.
Trading bitcoin on forexBenefits and Risks of Trading Forex With Bitcoin
Many forex brokers have already seen the potential of bitcoin, as well as other cryptocurrencies, and are now offering crypto pairs on their platforms. The main difference between bitcoin currency pairs and CFDs is that when trading bitcoin currency pairs you need to also pay attention to the price of the fiat currency in our example, this would be the US dollar. Currency pair trading is all about how the two currencies interact, whilst with CFDs, you only need to concern yourself with one asset.
It is important to remember that neither of these methods allows you to own bitcoin. When we look at investing vs trading cryptocurrencies, this is where the distinction comes from. Trading allows you to profit from price movements, without owning the asset itself. With the help of our experts trading bitcoin is easy and safe. Whilst there are several things you need to understand and do before you can start trading bitcoin, our experts have explained each step of the process to make everything as easy as possible.
Follow our step-by-step guide to start trading now. The very first thing you need to do is to find a high-quality bitcoin brokerage. To do this, you can use the list of brokers on this page. All of these brokers have been rigorously tested by experts and offer great cryptocurrency trading opportunities.
If you wish to check out other brokers, you need to first make sure that the platform allows you to trade bitcoin in crypto pairs or CFDs. This information is usually disclosed either on the front page or the About Us page of the forex broker. A license is essential to avoid fraudsters. Of course, all of our recommended bitcoin brokers are licensed by highly respected bodies, such as the FCA and CySEC, so you can rest assured they are safe.
This is the most important step you will take, as it can impact your profits. To be successful at bitcoin trading you need to be disciplined and methodical. Make sure that you have a clearly defined goal and know what you want out of the market. Successful bitcoin trading is reliant research and analysis. This usually starts with reading and understanding the latest bitcoin news.
To find bitcoin news, you can use a trusted website or a group on social media channels such as Telegram. Alternatively, you can follow thought leaders on Twitter and gain insight from them. Every forex bitcoin platform is kitted out with useful tools and features that you can use to make research easier. Things like support levels, resistance levels, and moving averages are some of the indicators you could use.
We recommend trading with a demo account first so that you can get to grips with the markets before using your own money. This means choosing the correct currency pairs and setting up the graphs.
Usually, once you choose the currency pair, the graph will show up immediately. The most common pair is bitcoin to USD, so you may want to start with that. These orders will help you avoid any unnecessary losses if the trade moves against you. These orders are also useful if you have to leave your device and are unable to watch the prices.
Before diving into bitcoin trading, you must understand the four main strategies that people use. This allows you to choose one that suits your trading needs and style. Below, our experts have explained all four popular bitcoin trading strategies in more detail.
The advantage of bitcoin trading is that you can try different strategies to find one that works for you. In contrast, investors have to just buy their assets and wait for them to grow in price. Customizing your strategy is always going to lead to more successful trades.
We recommend learning more about cryptocurrency trading strategies before placing your first trades. To ensure that you know exactly what trading bitcoin entails, our experts have created this simple explanation:. Coinbase Visit site Coinbase is one of the largest cryptocurrency exchanges in the world that supports buying Bitcoin with USD through multiple options.
The platform has some of the lowest commissions on buying Bitcoin, and also allows you to trade if for other cryptocurrencies should you want to. Coinbase is also one of the few registered and regulated exchanges operating in both the UK and the US. Since bitcoin has a finite supply, those that started investing early, when the price was low and supply high, managed to reap a lot of benefits when demand rose and supply dwindled. This was noticed by forex brokers too, and they began offering bitcoin currency pairs, CFDs and futures.
At this time, stories of incredibly rich bitcoin miners made the news and the cryptocurrency turned mainstream.
You may have heard how a distant relative or a friend set up a bitcoin mining farm and made millions of dollars thanks to it. The only way to learn how to mine bitcoin is by dedicating hundreds of thousands of dollars to equipment and real estate.
Sign up to our newsletter in order to receive our exclusive bonus offers and regular updates via email. Last update: 17 December Bitcoin Trading — How to Trade Bitcoin with a Forex Broker Bitcoin trading is fast approaching a state where it can rival stock and forex trading and so you may already be asking yourself the following questions; why should I trade bitcoin?
Award-winning proprietary trading platform. Sign up Read review. Availability subject to regulations. Why trade bitcoin? How to use a forex broker to trade bitcoin You may be surprised to learn that trading bitcoin is not only possible on crypto exchanges. If you buy a bitcoin currency pair, also known as going long or taking a long position, you are speculating that bitcoin will strengthen against the quote currency. Once the price rises, you can sell it for a profit.
The opposite, taking a short position, means you think that bitcoin will weaken against the quote currency. Bitcoin CFDs allow you to profit from the change in the price of bitcoin, without actually owning any. Here, your main concern is whether you think the price of bitcoin will fall or rise in the near future.
Like with currency pairs, with bitcoin CFDs, you can take a long or short position. How to start trading bitcoin — a step by step guide With the help of our experts trading bitcoin is easy and safe. Open an account with a forex broker The very first thing you need to do is to find a high-quality bitcoin brokerage.
To open a bitcoin trading account, you will require the following information: Your personal details Name, Surname, Middle name, ID Employment details where you work or have worked How much you know about trading KYC documentation usually an ID and photo of you An approved and supported depositing method usually bank transfer or PayPal 2.
Conduct analysis and research Successful bitcoin trading is reliant research and analysis. Bitcoin trading strategies Before diving into bitcoin trading, you must understand the four main strategies that people use. Swing trading Swing trading is very similar to investing, as a trader keeps his or her position open for more than one trading session.
This means having the trade open for a few days, weeks or even months. Usually, day traders hold positions for a few minutes up to an hour. There are some unique advantages that you can get by trading Bitcoin with forex brokers as opposed to Bitcoin exchanges. The next step is to fund the trading account in any of the account currencies listed. The most popular currency to use is the US Dollar. Go to the Bitcoin page on the OpenBook platform of eToro.
You will see the interface showing the price of Bitcoin as well as the candlestick chart. Click the Trade button. Clicking the Trade button takes you to the next page where you are required to select the amount of Bitcoin Bitcoin Stock you want to buy.
You can choose the default amounts or you can enter a custom amount in the space provided at the bottom of the page. Confirm your trade entry and it will be placed in queue. Usually the Bitcoin orders are executed at specific times of the day on the eToro platform. It must be noted that other forex brokers may have trade conditions which are slightly different. For instance, AvaTrade offers two Bitcoin contracts : a mini contract Bitcoin Mini which does not expire, as well as a weekly contract Bitcoin Weekly which expires at the end of the trading week.
Also, some brokers allow execution of orders as soon as they are made, which differs from the eToro model where orders are fulfilled just 4 times in a trading day. Forex brokers generally do not allow Bitcoin trading on weekends, even though Bitcoin is traded 7 days a week on the traditional exchanges. It should also be emphasized that forex brokers offer Bitcoin trading as a form of CFD trading , which means that no Bitcoins are actually owned.
Traders only make money from price fluctuations on the asset without actually owning the asset.