Bitcoin Forex Brokers allow their clients to deposit and withdraw of funds using digital the digital currency, Bitcoin. They also provide the opportunity to trade the infamous cryptocurrency CFD’s.
What is Bitcoin?
Bitcoin is a digital currency that was introduced in 2009, and uses blockchain technology to facilitate faster transactions. It is considered to be the first decentralized currency. Only 21 million coins exist, and they are predicted to last until 2140. Cryptocurrencies are highly speculative assets. Therefore, their price is constantly fluctuating with huge spreads. To be able to trade bitcoin, technical analysis is required to specify when to buy and sell.
There are currently several online currency exchanges available where one can exchange all main currencies like dollars and euros for bitcoins. However, it is a better option to trade assets like bitcoin through a reliable forex broker that offers bitcoin and other cryptocurrencies trading. By trading instead of buying cryptos, the risk is minimized and your funds are more secured as most forex brokers are compliant with the strict regulations around crypto trading.
Bitcoin Forex Brokers List
MAS, JFSA, DIFC
How to Make Money Trading Bitcoin
There are several ways to make money by trading bitcoin, and other cryptos. The most known way is by trading this virtual currency against the US dollar(BTC/USD). The first thing to do, is to find a bitcoin forex broker and invest in the digital currency in the same way you would a physical currency. Since bitcoin is an extremely volatile and highly speculative asset, you should be able to identify the dips with a bit of bitcoin research.
Bitcoin research can be done through both the fundamental and technical analysis of the financial markets. On a technical level, bitcoin technical trends tend to stretch about a year at a time so it shouldn’t be that hard to identify and execute a trade accordingly. On a fundamental level, traders must look at the number of bitcoin traders, the number of wallets currently used and the volume of bitcoin trades, to determine the outcome of a trade.
No matter what strategy you decide to use to trade bitcoin, it is important to make sure that you have chosen the best bitcoin forex broker to invest your money with. Don’t forget to compare the spreads of different bitcoin forex brokers to make sure you won’t payhigh fees. It is also important to check the execution time to make sure you can guarantee the price you want at the right time. You may also want to consider the leverage available for bitcoin trading so that you can increase your risk/reward ratio and your chances for profit. Finally, most of all we recommend that you choose a regulated bitcoin broker so that your money will be secured at all times.