Making money with Bitcoin is a lucrative option. It can be done by buying/selling bitcoin at a price differential on long term or trading bitcoin on Bitcoin Forex Broker platforms.
Bitcoin is a distributed, decentralized and democratized digital currency. Bitcoin transactions happen over a secure and transparent network called blockchain, which is part of the Bitcoin protocol. Even though bitcoin is a well-known and widely used digital currency, it is not legal tender of any particular nation. This makes the digital currency separate from the existing conventional banking and trading infrastructure.
All the qualities of Bitcoin as mentioned in the earlier paragraphs make it a truly global currency. Like other currencies, bitcoin can also be sold, bought and traded. One can buy and sell bitcoin, effectively converting them to the fiat currency of one’s choice over bitcoin exchanges or trading platforms. While few exchanges offer in-built trading features, the value is generally pegged against one specific currency. Many foreign exchange brokerage platforms (Forex Brokers) in recent days have included bitcoin as one of the assets, allowing users to trade bitcoin with any other foreign exchange and/or commodity.
Bitcoin Forex Brokers offer multiple options for bitcoin traders to execute multiple trades over a short period of time. By trading on Bitcoin Forex Broker platforms, users can efficiently leverage upon intra-day and inter-day volatility in bitcoin value.
The basics to profitable bitcoin trading involves buying the digital currency at a lesser price and selling the same at a price higher than the original buying price. However, one can either choose to factor in the profits by accounting for the difference in buying and selling of specific bitcoin or the whole pool.
The Bitcoin Forex Broker platforms requires traders to first create an account on their platform and deposit a minimum amount of bitcoin or digital currency (in some cases). Once the account is created and required KYC (Know Your Customers) regulations are met, users can start trading their bitcoins against other assets. These platforms also offer education resources on bitcoin and trading to help new users understand the process better. They also offer real time bitcoin market data in the form of multiple charts and graphs to help traders make an informed decision on their trade.
Some of the trading methods employed on these Bitcoin broker platforms are CFDs and Binary Options. CFD or Contracts for Difference is a widely used over the counter financial derivative product where user can trade on the price movement of bitcoin. Trading with CFD doesn’t require the user to actually own the bitcoin except for a minimum required balance.
Binary Options trading with bitcoin can be more rewarding if executed properly. However, it carries a greater risk than CFD. Binary Options can be of three types – All or Nothing, Digital Option and Fixed Return Options. Trading with binary options involves predicting the performance of the asset, in this case bitcoin over a period of time. It can be anywhere from a couple of minutes to months.
There are numerous bitcoin brokers and trading platforms out there. The choice of trading is dependent upon the trader’s risk appetite and experience to an extent. It never hurts to be cautious. It is advisable to opt for a regulated bitcoin broker in order to ensure the safety of funds.
A general word of disclaimer: Trading assets like bitcoin over derivative platforms is very risky and it may result in losses. It is advisable not to invest more than what one can afford to lose. BTCNews will not be liable for any loss or damages resulting from content available on the website.