The foreign exchange market – in other words, the Forex market – is the globe’s center for purchasing and selling cryptocurrency. Individuals actively engage in the Forex market on a daily basis in the pursuit of opportunity. They deploy short-term and long-term strategies to determine when the right time is to buy or sell a currency pair. FX trading is a lot simpler than it seems. All you have to do is buy a currency pair at one price and sell it at another price so as to make a profit. If you are thinking about taking advantage of this goldmine of an opportunity, start a trading account with a Forex broker that accepts Bitcoins. Now, you can trade Bitcoin, as well as other cryptocurrencies. The FX market has gone blockchain and this is a good thing. Int his article, we will discuss the correct and successful way to trade Forex with Bitcoin
The distinction between Forex and crypto trading
Attention needs to be paid to the fact that Forex trading and cryptocurrency trading are not the same thing, although there are indeed some similarities. The underlying market dynamics of supply and demand that governs the price of the assets is virtually the same. However, the similarities end here. Bitcoin is a digital currency and it does not depend on any government or institution. This currency can be sent directly from one use to the user in a peer-to-peer networks that does not require intermediaries. The players in the Forex market, on the other hand, are extensively regulated, setting high standards for others.
There are other interesting differences. Time trading – Forex time trading is limited to 5 days a week, which means that it closes in weekends. Bitcoin can be traded at any hour of the day and night, as there are no trading limits. Cryptocurrencies represent new technologies, attracting the brightest minds from all over the world. Needless to say, crypto is interesting, but those who trade Forex enjoy much more protection, as brokerage accounts are insured by the government in the case of an unfortunate event. It is difficult to figure out what is the best way to trade. The good news is that you do not have to settle for the one or the other. As the title clearly suggests, you can trade Forex with Bitcoin.
Brief introduction to the benefits of trading Forex with bitcoin
There are countless advantages of trading Forex with Bitcoin. This is what you gain from opening an account with a broker who accepts Bitcoin:
1) High leverage
The fact that leverage in the foreign exchange market is as high as 100:1 may come as a surprise. As far as trading Forex with Bitcoin is concerned, the leverage can reach up to 1:1000. If you happen to be a trader with experience, you can use this to your advantage. You can make profit with small amounts of money. Some FX regulators will no doubt limit the maximum leverage on currency pairs. The good news is that European brokers offer a much higher leverage as compared to their peers. Pay close attention when using high leverage, especially if you have aggressive strategies, and avoid potential loss.
2) Zero transaction costs
You do not incur expenses when buying or currencies in the Forex market. To put it simply, there is no cost of trading Forex with Bitcoin, so start looking into cryptocurrency Forex brokers. What happens is that the Bitcoin transactions are recorded on the public record, that is, the blockchain, with no involvement from banks or regulatory agencies. You do not have to worry about withdrawal or deposit fees. Keep your eye on the profit.
3) Absence of global boundaries
Globalization translates into business without boundaries. The FX market has changed radically, in the sense that geographical boundaries are no longer important. You can execute Bitcoin trades from any corner of the globe. For instance, if you are a trader based in Croatia, you can trade through a broker that is based in the United Kingdom. There may be the issue of regulatory changes, yet both parties are willing to go through with the transactions, it will be fine.
How to trade Forex with Bitcoin
To trade Bitcoin, you just need a wallet which is assigned a one-of-a-kind address. As mentioned earlier, the transactions are recorded in the blockchain. Bitcoin is largely considered the currency of the future and it is not hard to understand why. Besides the fact that its progress cannot be stopped, it is a stable option to transact in these economic times that are mostly characterized by inflation. Given the high demand for Bitcoin trading, it is great to see that Forex brokers are doing everything possible to cater to the needs of the client.
Trading Forex with Bitcoin is not exactly brain surgery. Let us take an example. After having opened an account with an FX broker that accepts cryptocurrency such as AvaTrade or Liteforex, you deposit one or two Bitcoins from your digital wallet to the professional’s wallet. Maybe you would like to use the pound sterling. Depending on the exchange rate, you can receive up to £500. You have made some profit and have the possibility to cash out. You can buy and sell on all the Bitcoin trades, no matter in which way the currency is moving. Before you start trading, ensure you are up to date with the latest news, getting invaluable insight into emerging trends and patterns. The moment that you are sure about your position, you can place the trade.
To sum up, it is necessary to forget about old-fashioned ways of trading and look into alternative methods when it comes down to funding your Forex account. There are many FX brokers who accept Bitcoin and allow you to make advantageous global transactions. You will be more than happy with their services and the conditions they impose. Selecting a Forex broker depends on where you are located, what services are available in the area, and, most importantly, your trading style. Jump right in and do not be afraid to use your hard-earned Bitcoins.