How is Bitcoin Trading, Bitcoin as a currency, like the rest of the known regular currencies, despite its hypothetical and decentralization, it can be paid in exchange for obtaining various goods and services from sellers who accept them as a commodity according to their exchange rate in the market.
Many investors are doing Bitcoin Trading to achieve many profits in a short period of time, such as making profits from gold trading, oil trading, metals trading, forex trading, banking, mortgages, and credit.
What is Bitcoin?
Bitcoin can be traded on the open market and is not controlled by any central government. For example, the decisions made by the US Federal Reserve have a direct impact on the value of the US dollar. Bitcoin's value is not affected by any central bank's decisions. This is part of Bitcoin's appeal.
Bitcoin trading is the process of speculating on the bitcoin price in order to take profit. Unlike buying and holding Bitcoin only, when you trade Bitcoin, you adhere to a few different criteria.
Why should I trade Bitcoin?
Bitcoin attracts investors because its volatility provides the potential for profit. Of course, this volatility also provides the possibility of losses just as easily. If you want to trade bitcoin, it is important to educate yourself about the Bitcoin market - and make sure to assess your risk tolerance.
Is Bitcoin Trading the Same as Forex Trading?
Bitcoin is a digital currency, so investors and traders may think of it in terms of the foreign exchange (Forex) market. Forex is the largest market in the world far away, with a daily turnover of approximately $ 6.6 trillion, according to the 2019 edition of the Bank for International Settlements (BIS) triennial survey.
For starters, you are just asking to buy or sell Bitcoin with the purpose of looking for price action. Hence, you have no intention of using it as currency.
You are only looking at the asset through a market movement lens. Exact parallel in the foreign exchange market.
In the foreign exchange market, or forex, it is possible to buy and sell the US dollar, Japanese yen, and other global currencies at volatile prices.
Although the underlying asset (currency) can be used as a form of payment, in the Forex market all that is concerned is the movement of the currency's price. Trading bitcoin and crypto currencies are just like that.
How to trade bitcoin in two steps
To start trading Bitcoins and other digital currencies, there are three steps:
The first step: choosing a trading platform
To start trading bitcoin, you will need a solid and reputable platform (broker). There are many platforms where you can buy Bitcoin or any other digital currency.
The strongest and most stable platform enables you to invest not only in Bitcoin but in other most popular crypto currencies such as Ethereum, Litecoin, Ripple, DashCoin, Bitcoin Cash, and others.
Second Step: Open a trading account
After choosing a trading broker, you will have to register and choose the type of account you would like to trade with that fits your specific requirements. When opening a real trading account, you must go through three simple and easy steps:
1- Fill out the account opening form.
2- Proof of identity and activation of the account.
3- Funding the account, by depositing via a Visa card or bank transfer.
The best bitcoin trading platforms
Choosing the best crypto currency trading broker in 2020 can be challenging. Do you find yourself inundated, while searching, among hundreds of ads and dozens of platforms promising you the "best crypto currency trading experience" and the "greatest opportunity for superstitious earnings"?
do not worry. We have tested and reviewed several bitcoin trading platforms, and we have selected the two best platforms for you to work with. We have made sure that the broker is safe and reputable, as well as it provides a lot of opportunities for trading crypto currencies, fair fees, and strong and professional platforms.
Advantages of trading Bitcoin
Reference and transparency
All transactions, transactions, and production of Bitcoin are recorded in the public record displayed and viewed by all participants in the formation of the main blockchain network so that every new hash that is produced is produced by reviewing the hash that precedes it.
Thus, the hashes produced are a miniature copy of the block's encryption root code, and this preserves the credibility and legality of all blocks, and any change or manipulation that everyone will know about is rejected by the network during the verification process.
Total confidentiality
Any user can create an account and a Bitcoin wallet without linking them to names, addresses, or personal data, and the operations recorded in the records do not contain any data of the source or recipient, as they are a complete record of transaction details only.
The transaction cannot be returned
Once the transaction or transfer has been completed, it is not returned or as happens with credit cards Refund, the recipient must make a new transfer process and verify it again as it is a new transaction and this increases the credibility of the transactions and closes the door as to any possible manipulations.
Bitcoin Trading
Bitcoin and most other crypto currencies are traded in the same way as CFDs, the difference between the current value of the asset and its value at the end of the contract. If this difference is positive, this is in the interest of the buyer, just as it is with gold trading on trading programs.
And trading in it is a direct spot, meaning that the decline in the price of bitcoin or its advance is dropped directly from your primary account, for example, if you buy one Bitcoin at a price of 16830.90 and the price falls to 16693.50 levels, this means that the loss from your account will be $ 137.40.