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Benefits of trading Bitcoin with Forex Brokers

HYCM Forex broker | Jun. 29, 2017
Benefits of trading Bitcoin with Forex Brokers

What are the benefits of trading Bitcoin with Forex Brokers? AtoZ Approved Broker HYCM discusses key benefits of trading Bitcoin with Forex brokers along with some Bitcoin basics.

29 June, HYCMThe astronomical rise of Bitcoin that we have seen this year is not over yet! The Bitcoin rally has grabbed the attention of global traders from all over the world. When Bitcoin price surged above $3,000, investors were shaken. How could a piece of code be twice more valuable than gold?

However Bitcoin is a very volatile instrument. The faster it goes up, the faster corrections could take place. The latest  Bitcoin drop has reverberated across the cryptocurrency space. This resulted in Bitcoin market cap taking a big plunge from $49 billion to $36 billion in just three days. However, investors are still keen on their Bitcoin investments.

Nevertheless, there is no doubt that trading Bitcoin continues to generate considerable interest. In addition, more and more Forex brokers have started offering their clients Bitcoin trading. Among them - HYCM.

As HYCM now offering Bitcoin trading, traders now have the option to speculate on the price of Bitcoin against the US Dollar on the HYCM trading platform.

Key Bitcoin advantages

Bitcoin is a digital currency, created and held electronically. The coin can be used to buy things electronically. In this respect, it is not dissimilar to regular dollars or euros. There is, however, a major difference between the conventional currencies and Bitcoin.

Bitcoin is decentralized. Hence, because no single institution controls the Bitcoin network, larger institutions such as banks cannot exercise control over people’s money.

In addition, Bitcoin has a simple set-up procedure and the added benefit of being anonymous. In fact, Bitcoin addresses have no links to names, addresses, and other personal information.

Furthermore, Bitcoin is completely transparent. The system stores details of every individual transaction in the network in a “general ledger". Most of you know this ledger technology as the Blockchain.

Finally, transactions are fast with low fees, allowing you to send money universally. With all its advantages, it comes as no surprise that this interesting cryptocurrency has caught the attention of traders.

How Can I Trade Bitcoin?

As we have seen, the price of Bitcoin is constantly fluctuating. Due to its volatile nature, a thorough technical analysis is vital when it is best to buy and sell.

There are currently several online currency exchanges on the market. You can exchange USD, EUR, and other currencies for BTC. However, these are usually traded through Bitcoin brokers or Forex brokers like HYCM, who offer Bitcoin trading.

Can you make money trading Bitcoin?

Yes, it is possible to make money trading Bitcoin, there is no doubt. There would generally be two ways to make money with Bitcoin:

  • Investing in Bitcoin: Buying and leaving it to gain long-term  value
  • Bitcoin speculation: Trading bitcoin frequently, buying low and selling high and repeating the cycle.

Open a demo account with HYCM to test  bitcoin trading with a Forex Broker.

In Forex, normally, traders prefer to trade BTC against the US dollar. In this respect, already some Forex brokers offer Bitcoin, with some offering it as a counterpart in a currency pair i.e. Bitcoin against the US dollar with BTC/USD abbreviation in Forex market. Others offer it as a deposit and withdrawal option for their clients.

Benefits of trading Bitcoin with Forex Brokers

There are certain benefits of trading Bitcoin with Forex brokers offering Bitcoin as a tradable instrument.

Bitcoin is an alternative payment method

For those who already use Bitcoin for other purposes, opening an account with a Forex broker offering Bitcoin provides an alternative payment method.

Bitcoin allows for easier fund management

In addition, Bitcoin makes depositing and withdrawing funds easier.

Relative advantage - decentralized cryptocurrency

Thirdly, it is an ideal option if you prefer to use a decentralized cryptocurrency that is not dependent on many volatile factors affecting fiat currencies and centralized payment systems. BTC/USD is an ideal new trading instrument with its own technical and fundamental factors. It offers excellent opportunities to Forex traders.

Bitcoin trading with a Forex broker is faster

Longing or shorting Bitcoin with a Forex broker is much faster. Leverage could also help, however be careful with the risk factor with leverage as well.

Does Bitcoin have a future?

For skeptics who believe that Bitcoin does not have a future, shorting Bitcoin against the USD for example, is a way of monetizing those predictions but with the recent heights achieved, anything is possible.

For this reason, it is important to remember that trading Bitcoin is highly speculative and comes with risks. However, with thorough research, potentially lucrative opportunities await those who are prepared to put in the time and effort to get a solid grasp on this popular cryptocurrency.

If you are looking for a Forex broker to trade Bitcoin, you should ensure that you opt for a reputable one. HYCM is an AtoZForex approved regulated reliable broker. Choosing an AtoZForex approved and regulated broker means that your money is secure at all times.

Open a demo account with HYCM to test  bitcoin trading with a Forex Broker.

About HYCM

HYCM is a leading provider of online FX and CFD trading services to retail and institutional investors. With a 40 year operational history and a strong focus on client satisfaction and technological advancement, HYCM has become the online broker of choice for investors across the globe.

HYCM is part of the Henyep Group, an international conglomerate with businesses in financial services, property, education and charity. It is providing access to a range of asset classes including currencies, commodities, metals, shares and indices.Moreover, HYCM is represented globally with offices in United Kingdom, Hong Kong, Cyprus and Dubai.

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Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.