Here's how to start trading forex with Bitcoin

Over the past few decades, the financial market has transformed like never before.

Here's how to start trading forex with Bitcoin. [Unsplash]

The benefits of this evolution have reached every stakeholder from workers, brokers, to investors alike. Nowadays, it is convenient as a piece of cake to invest and trade in the financial markets. The case is similar with the foreign exchange market.

Foreign exchange, popularly referred to as forex or FX, is a global market that is dedicated to the trading of currencies. It is the movements in the forex that determine the value of each currency in the world. The foreign exchange market is the biggest market in the world in a big way. All kinds of fluctuations, the flows of demand, supply, buying, selling, and related factors are recorded in the financial market.

In current times, the forex is anticipating a huge addition in its system in the form of cryptocurrency, especially bitcoin.

Bitcoin (BTC) is multiplying its reach across industries.

In every market, whether it is stocks or commodities, bitcoin is beginning to make an impact in one way or the other. Not only is it the most popular cryptocurrency, but it is also the most valuable currency by far.

Pegged to the U.S. dollar, bitcoin is a digital or virtual currency that doesn’t have an underlying asset to determine its value. The peer-to-peer technology that Bitcoin uses - instant payments among users. Due to its nature, bitcoin is useful for a variety of purposes and individuals with varied needs and expectations - from ones seeking huge returns over the alternative assets to the ones who want to use a possible hedge against uncertainties in the global market.

Clearly, bitcoin has a string of advantages to offer, and that is why more and more players in the market are beginning to consider including bitcoin in their systems on a full-time basis. The foreign exchange market is no exception in that sense. There is a lot to yet to be decided about it, but it is interesting to know that people are already trading in forex with bitcoin. People who are well aware of the functionalities of bitcoin and know how it can help want to trade using bitcoin.

However, since the trend is still in the initial growth phase, not a lot of people know how to go about it. If you are also among people who are not sure how they can start trading in forex with bitcoins in place of traditional currency, we have all the steps listed down to enable you to get started. Let us have a look through them:

First thing first, you have to figure out what is the purpose of your trade and why you are choosing bitcoin. If you do not know how bitcoin works, it would be in your best interest to first study it - the opportunities and risks associated with it. Once you have good knowledge of crypto and forex, you can get started with the process.

In order to fill yourself with insights, you can go through online articles and guides dedicated to the use of bitcoin in forex. Reading news about past trends and happenings in this regard may also aid you greatly. This way, you can prepare yourself for the ever-uncertain market conditions. Not to mention, you will be able to make better decisions.

Due to the fact that bitcoin is not yet universal, there are forex brokers that do not grant bitcoin in trading. On the bright side, there are many that do such as eToro, AvaTrade, LiteForex, and Bit4X, etc. In fact, if you look carefully, you can find a broker that checks all the boxes of requirements for you. All you need to do is see which one is better for you. It is recommendable that you shortlist 2 or more brokers before you choose any. After you have shortlisted, you can compare them on different scales.

By doing this, you will know which broker’s offerings and services are more comprehensive. Always bear in mind that having a good broker is very important in forex trading. A good brokerage firm will not only provide you with an easy platform for trading, but they also ensure to help you in decision making by showing you all the relevant information on a real-time basis. Some of them even offer consultation services at extra or no cost that you can consider since you are going to be trading for the first time.

Another thing that is very important to do is to go through reviews before you choose your broker. They are brokerage firms, they would always speak highly of their services Though with reviews you can see if their services are really what they claim to be. The professionals behind https://www.trusted-broker-reviews.com/fxtm/ point out that reviews help you with both making the right decision and understanding the process. Therefore, you must not skip this process.

Even if you feel you know all about it, it’s best for you to hold down in the first few rounds. Try to understand the flow. The rule is to “invest less and observe more.” With bitcoin, it’s even better because you can start investing with as little as just $25. When you invest little, you do have a big risk in your way.

The most important part is that you will get to learn all the bits about the investment and trading process. What is more, the cost of trading is also low when you do it with bitcoin. Forex brokers are keeping the brokerage costs low in order to get more clients.

Trading with bitcoin is similar to regular forex trading, but not all the way. There are a number of factors that you need to consider before you can before you can invest higher amounts. Bitcoin is highly volatile in nature, and that may be used by an unregulated broker against you. Since there is no universal guiding law for bitcoin, the unregulated brokers may use calculations that benefit them instead of you.

Additionally, bitcoin’s security can be breached by hackers, therefore you should make sure you use the highest protection for your investment. To ensure safety, you should choose a broker that has theft insurance. Similarly, there are some more risks and concerns that will need your careful attention. Additionally, you must also make sure to anticipate the movements and flows of the market before you place your money anywhere.

After you have accessed all the risks, you can go with investing more. Doing this will give you more confidence in forex trading, and as a consequence, you can do much better.

As with every other asset, with bitcoin, there are few risks and some great advantages. You can make use of these advantages to proliferate your value. For example, when it comes to bitcoin trades, some forex brokers offer high leverage that you can use to your benefit. If you are cautious and know what’s right to do, high leverage can enhance your overall trading experience.

One of the greatest advantages that you have with crypto trades is that there are no geographical boundaries which mean a trader can trade from anywhere in the world with the forex of any country as long as the broker is willing to transact in crypto. This is a pretty nice way to take advantage of a particular country’s strong currency and flow. For example, if you are living in Singapore and you see good forex opportunities in France, you can contact a forex broker in France to get started. Isn’t that impressive?

If you follow the methods mentioned above, you can be sure of a seamless forex trading experience with bitcoin. Bitcoin is yet to fully mature and is accepted worldwide, but its bright future doesn’t seem quite far away. Like bitcoin, you can also invest using other cryptocurrencies depending upon their valuation and your own study of them.

What you must remember is that like any other currency or asset, bitcoin is also prone to certain risks that you must give more than a passing mention. Try to reduce your risks as much as possible and capitalize on opportunities and benefits every occasion you get. It can be said that it is going to ask for a bit of study, analysis, and experience. Though if you get it all right, you may actually come to like trading with bitcoins more than traditional forex trading. We hope the information that we put down above proves to be helpful to you and gets you started on the path to be a successful forex investor.

This is a featured post.

JOIN OUR PULSE COMMUNITY!

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.ng

Recommended articles

Chinese President XI writes Buhari, seeks to bolster relations

What is the future of Bitcoin?

Fidelity Survey: 52 % Of institutional investors have Bitcoin as a form of investment

What are cryptocurrencies, and what are the tips to securely invest in these currencies?

Here’s a strategy for achieving financial freedom in your business

Know everything about Cryptocurrencies and Blockchain!

Why are governments cautious about Bitcoin?

Crypto experts predictions about the future of Cryptocurrencies!

CBN says banks remain stable, resilient despite pandemic