Considered by many to be the money of the future, virtual cash has taken a foothold in the global market, and its growing influence has drawn the attention of financial institutions across the globe. One such entity is the retail currency market. With the exploding popularity of Bitcoin, which is the largest and most dominant cryptocurrency in the financial market, some FX brokers have begun offering Bitcoin trading on their platforms. So it is now possible for a trader to trade bitcoins just as he trades US dollars or even gold.
Cryptocurrencies: What are they and why do we like them?
Now, the mechanics of how cryptocurrencies actually work can get a bit complicated for those of us who aren’t as competent in computer science or mathematics, but it does not take a genius to see the allure that these type of currencies have. Like the name suggests cryptocurrencies are built on cryptography. This is the secret to keeping the transactions that use this digital currency anonymous, because the exchange is not secured by people, but by math algorithms.
Unlike any other form of currency currently available to us, cryptocurrency is also decentralized. This means that no one country, person, or financial institution has any control over the currency. There are advantages to why people use this type of currency as it offers a level of security, privacy and is available to everyone to use. On the flipside, they are quite young, hence there is a lot going on around them. The best way to learn more about the Bitcoin and altcoins, and to stay up to date with the most recent updates is by browsing cryptocurrency news and following the regulatory updates. On a bright side, no one can prevent you from using cryptocurrencies because the software is free, and once you download it you can start sending and receiving digital currencies immediately. (Well unless someone steals your laptop of course).
Trading the Cryptocurrency: What are the options?
For traders, they also have the incredible option of choosing the type of cryptocurrency that they want to trade. While Bitcoin is the most popular, it is not the only one available. Brokers also offer currency pair options for Ethereum, Litecoin, Ripple, Dashcoin, Monero, Zcash and the list goes on and on. And with hard currency and virtual currency crosses like the BTC/USD (bitcoin/us dollar) and the LTC/EUR (litecoin/euro), it is no wonder why Forex brokers have begun hosting these currencies on their platforms. The more offerings they have, and the more diverse their portfolio is, the better that they appear to their clients. So in offering cryptocurrency options, they themselves attract more clients. Besides that, cryptocurrency trades may benefit from additional offers available exclusively through FX brokers, such as bonuses and gearing. These features might make trading with the brokers a bit more attractive than trading through a regular exchange. On top of that, for traders, the added allure is that this currency provides ample market opportunities due to the volatility that it offers; and many adept traders have found great success in adopting this digital currency in their currency pair rotation.
Which Brokers Support Cryptocurrencies
Forex brokers like AvaTrade, eToro, Markets.com and UFX all have bitcoin trading in their pool of currencies that they offer to their clients. They are just some of the ones who recognize that power and potential that such offerings have. Other forex brokers who have not gone full out in offering it as a trading currency, still have mechanisms that accept bitcoins for both deposits and withdrawals.
Presently, it is difficult to pinpoint just how many FX brokers have decided to offer such services to their clients. Some say just upwards of twenty (the ones that are even worth mentioning). Others who include brokers who accept the currency deposits and withdrawals say around fifty. Compared to the vast multitude of forex brokers world wide, that numbers seems very small in comparison, but with the rapid progression of digital transactions across industries, that may change soon enough.