Are you an experienced trader or an investor who is looking for new opportunities or interesting ways to invest your money? There is a potentially very profitable option and we’re going to discuss it here. Does this sound appealing? If so, carry on reading.What is Bitcoin? In Short Some of you probably know what Bitcoin is, but it is unlikely that you understand how it works. However, we are talking about an issue, which is directly connected or relative to your money so it’s better to understand what it really is. We will try to explain it a little bit.First of all and the most obvious thing, Bitcoin is a cryptocurrency, which does not have any central bank or institution so in other words it’s fully decentralized. Satoshi Nakamoto invented Bitcoin in 2008 and since that time Bitcoin has been growing each year. Though its growth hasn’t always been at the same rate, there have been slumps and fallings but it still continues to grow and tends to be less volatile.Thousands of people around the world are mining Bitcoins; in particular, mining pools. Businessmen invest their money into data centers and mining rigs to mine Bitcoins and therefore the whole system is maintained by the Bitcoin society. There are only 21 million Bitcoins and consequently Bitcoin isn’t susceptible to inflation like other real currencies.Not very complicated, right? If there is a need to get more information about Bitcoins you can read other articles on our website.Good Examples Are you considering investing in Bitcoin and especially trading with Bitcoin? Let’s delve a little deeper into this way of trading. A Forex scheme is quite simple to understand. There is a particular pair of currencies, let say, US dollar and the Great Britain pound, which is GBP/USD normally. If you have a deposit of $100 and the ratio is 1/1.51 you can buy £66. Then the price of GBP rises up to 1/1.57, you sell your pounds and receive a profit of 3%. Investing in Bitcoin is similar but there are three steps, not two. Here they are.When we’re talking about trading in Bitcoins, you need to keep in mind three currencies, not two. As an example, you transfer your 5 Bitcoins to an online wallet of a Forex broker who accepts Bitcoins. The price of a Bitcoin is $350 at this time; therefore the amount of money in US dollars equals $1,750. Then you buy British pounds for $1.51 per one pound which equals to £1,158. After a period, the price of GBP goes up and you sell them for $1.59 per pound, which equals $1,841. Here your profit is around $91 but you still should keep in mind that there is a third step. Do you remember that your transactions started with Bitcoins? Hence, you need to calculate your profit or loss in Bitcoins after all. Again, your Bitcoins cost $350 each but since that time, the price can change. If by the end of your transactions, BTC costs $330 per each Bitcoin, your total deposit in Bitcoins will be 5.58 Bitcoins compared with your starting deposit of 5 BTC. Not a bad return. It seems interesting but there is a high potential risk. Let’s discuss what it is in more detail.Make Your Decision What are the potential risks of trading with Bitcoins? As mentioned earlier, we need to keep in mind three currencies instead of two. It causes some difficulties when you’re trying to choose the correct moment to buy or sell. For instance, if the price of Bitcoin doesn’t fall but rises, say up to $370, your $1,841 will be equal to 4.97 Bitcoins. The problem is there are three prices which can vary and change which can have a significant affect on your income. The risk is higher but the potential profit is also much higher if you are aware of what you’re doing. However, for these reasons, it’s still very attractive to traders.Trading with Bitcoins has almost no cost or fees. The deposits in Bitcoin can be very low, starting at $100, $50, or just $25, which is very unusual for Forex. Transactions with Bitcoins are very secure and safe and you don’t have to use your bank account information or details of your credit cards. This mean you run the risk only with the amount of what you use in these transactions and not with the money in your pocket. Last but not the least, Bitcoin has no national or country borders so you may use it wherever you want. It means you have an extremely wide range of choice. An investor is able to find a better broker even if this broker is located in New York while the trader lives in Hong Kong. It makes your trading truly global and international.The most popular forex trading platforms are the MetaTrader 4 and MetaTrader 5. This is because these platforms are technologically advanced and offer enhanced security. This enables traders to place trades without worrying about the platforms’ stability. It is the key features of these platforms that enable traders to accurately monitor and precisely enter and exit the forex market.When it comes to trading Bitcoins, there are a couple of options available to traders. They can buy the cryptocurrency from a Bitcoin exchange and hold it till the price has risen to the expected level and then sell. Investors can also trade Bitcoins on these exchanges which have mushroomed in the recent times. Either way, what they are doing is trading the variation in the value of the cryptocurrency.Yet another option is to trade Bitcoins on forex trading platforms. Typically, they enable traders to trade the cryptocurrency against USD or EUR. They also offer Bitcoin-based CFDs. All these involve trading value variance. What is fundamentally different from trading on exchanges is that the traders do not have to actually possess the Bitcoin because it is used as an underlying asset.As such, Bitcoin trading on forex platforms provides traders with the best of both worlds. Read on to know more about the advantages of working with Cryptocurrency MetaTrader Brokers.#1: Safety and SecurityThe Bitcoin exchanges do present several options to traders. However, they are very unstable and are often susceptible to scams. A large number of exchanges that have cropped up after the introduction of the Bitcoin are no longer there now. As a result of this, many investors have lost their investments. Some of the exchanges are reliable, but some others are nothing but scams.Though the same conditions prevail in online forex trading as well, the situation is far better compared to that of the Bitcoin exchanges. The reason is that it is always possible for you to choose to work only with regulated forex trading platform providers. This is because these forex brokers are required by law to comply with certain stringent stipulations and also meet the specified capital adequacy norms. Additionally, they are required to keep their funds and that of their clients in segregated accounts. This ensures a great deal of safety and security to traders.#2: Cost of TradesForex brokerages often build all of the trading costs into the spread they offer. The spread may vary on the basis of price volatility of the asset. When it comes to Bitcoin exchanges, they generally offer tighter spreads and add some percentage of commissions depending on the trade volume. In certain situations, the total cost of trading may even be higher.#3: LeverageLeverage provides traders with a great deal of flexibility. This, in turn, makes trading the cryptocurrency on forex platforms more beneficial to the traders than using the exchanges for Bitcoin trading. Leverage offered by forex brokerages goes up to 1:20 whereas it ranges from 1:2 to 1:3 on exchanges. Some brokers are known to offer much higher leverage on Bitcoin trades.#4: Coin VarietyWhen it comes to coin variety, the exchanges may enjoy a slight advantage over the online forex brokerages. This is actually not a big problem because the best forex brokerages offer a lot of benefits to traders.MetaTrader 4/MetaTrader 5 Trading PlatformsMost of the online forex brokerages offer the MetaTrader (MT4 and MT5) forex trading platforms. In fact, the MT4 and MT5 platforms are considered to be the gold standard in the forex market. This cannot be considered as just an arbitrary decision.The MetaTrader 4 platform is more popular among traders because it provides the best user experience, is available in multiple languages, has advanced charting capabilities, automated trading through Expert Advisors (EAs), comes with advanced communication tools, utilizes limited resources, offers security, ensures a great deal of flexibility, and enables customization. MT5, an advanced version of MT4, is a good choice for new traders. It is more powerful, offers more timeframes, enables more pending orders, and provides more technical indicators. On MT5, it is possible for traders to create technical indicators and trading robots or EAs on their own. This means that the MT5 is more customizable. The use of the MT5 platform is, therefore, on the rise in the recent times.Bitcoin Cash started as a curio for many cryptocurrency analysts when it split off from the main bitcoin blockchain in early August, but a recent development shows signs that the the spinoff may eventually be a worthy challenger to its cryptocurrency parent.On Friday, the bitcoin-centric news site CoinDesk reported Bitcoin Cash is now more profitable to mine than traditional bitcoin. That means Bitcoin Cash makes the miners more money for the amount of computing power, known as “hash power,” that miners put into encoding the cryptocurrency. If the miners switch to mining Bitcoin Cash, it will shift the balance between the two cryptocurrencies, as there’s only a finite amount of computing power in the cryptocurrency world. But there are a few details that make the relationship between the two currencies a bit more complicated.Price What is bitcoin? Bitcoin is a currency, like a euro or the US dollar, used to exchange goods and services. However, unlike other currencies, Bitcoin is an electronic currency that presents novel features and stands out for its efficiency, security and ease of exchange.Its biggest difference compared to other currencies is that, it is a decentralized currency, so nobody controls it. Bitcoin does not have a central issuer like dollars or euros, the cryptocurrency is produced by people and companies from around the world devoting a lot of resources to mining.All about Bitcoin Cloud Mining | What Why and How | Legit, trusted, payouts, FAQs If you already know what bitcoin is and what you are looking for is directly buying bitcoins, here is an entry on the web that explains it. Let’s go with the guide.What is bitcoin? In this guide, you will learn. To choose between the different types of Bitcoin wallets that exist, to be able to explain how Bitcoin works, its different types of addresses, in addition to having at your disposal a page of frequently asked questions and a Bitcoin blog where, on a regular basis, you are commenting the latest events of the most famous virtual currency.Benefits and advantages of Bitcoin What's on Crypto is building a Hub, for 1 stop destination of all cryptocurrency news in 1 place. http://t.me/whatsoncrypto | Crypto News, Crypto Mining, Bitcoin, Etherium, Litecoin and all the news in one place. Currently, it is the most widely used digital currency in the world and there are good reasons why it is becoming increasingly popular. Both private users and sellers and business owners find in Bitcoin important advantages that have led them to adopt this system.Let’s see some introduction features to Bitcoin: It does not belong to any State or country and can be used all over the world equally. You can buy bitcoins with euros or other currencies and vice versa, like any currency. No intermediaries: Transactions are made directly from person to person. It is decentralized: it is not controlled by any State, bank, financial institution or company. Its falsification or duplication is impossible thanks to a sophisticated cryptographic system. The transactions are irreversible.It is not necessary to reveal your identity when doing business and preserve your privacy.The money belongs to you 100%; it cannot be intervened by anyone or the accounts can be frozen. I’ll show you how, in a way, Bitcoin resembles the cash we all know. In addition to presenting many of the characteristics of this well-known physical medium, by using it we always maintain control of our funds. Additionally, we also have many of the advantages that the digital medium offers us: it is immediate, it can be sent anywhere in the world, etc.Virtual currencies lower costs by eliminating intermediaries completely. To this day it is still very common that sending money anywhere in the world entails significant fees or commissions due to a large number of intermediaries in the process. This includes Commissions by bank transfer, commissions for accepting or using credit or debit cards, commissions for using “sending money” services or commissions for using “online payment” services.In Bitcoin, there are no intermediaries and the money goes directly from person to person: from buyer to seller or from private to private. This reduces the price of sending money substantially and also allows you to sell products and services at a fairer price.Bitcoin offers security to the buyer and the seller. Historically all means of payment or valuables have had security problems. Computer problems have caused the theft of thousands of credit card numbers, leaving unprotected buyers who have suffered significant losses. When we make purchases with Bitcoin we do not have to reveal sensitive information such as credit card numbers or bank accounts and therefore there is no risk of this information being stolen from the online seller.Bitcoin is also preferable to other online collection systems, especially for the seller. Bitcoin transaction fees are very low and there is no risk that fraudulent buyers and scammers that reverse the payment, staying with both the product and the money.Finally, the characteristics of this virtual currency allow the pages to establish a trust service (escrow), ensuring that the seller only receives the money if the product has successfully reached its destination. This is frequently used in auction pages and sale of second-hand products.Virtual currencies are a market that never stops. The price of Bitcoins is something that never stops, proof of this is that their market is negotiated 24 hours a day, 365 days a year.Bitcoin is fair.In many traditional systems we find that sending money is much easier than receiving it. This makes it difficult to create new businesses and online stores. However, with Bitcoin, both options are just as simple and anyone can send and receive money without any type of restriction. Also, if you own a business, both digitally and physically, it does not cost anything to start accepting bitcoins.Your bitcoins are only yours. The decentralized system behind the bitcoins makes it impossible for any other person who does not have credentials to access your money. Your bitcoins are yours and can not be frozen or hijacked, you cannot close any account and only you have access. This aspect is for many people perhaps the most important: to really feel that they own their money and be sure of it.Bitcoin is democratic: the economy of the people. When we say that Bitcoin is decentralized and that there is no institution, company, State, body or association behind it that controls it, it is literally like that. It is not a metaphor, but really the computer system of today allows the creation of this safe and reliable digital currency that favors free economic exchange between people around the world.Firms that provide currency traders with access to a trading platform that allows them to buy and sell foreign currencies. A currency trading broker, also known as a retail forex broker, or forex broker, handles a very small portion of the volume of the overall foreign exchange market.But is it possible to trade Bitcoins with Forex brokers? Why not? Bitcoin is obviously a popular asset to trade, and there are several ways to buy and sell bitcoin. The obvious choice is to go through a bitcoin exchange, but you’re not limited to this. Trading bitcoin through Forex brokers is now possible as long as you find a broker with the service.Fortunately, a number of them do, allowing you to trade bitcoin. Most brokers will have bitcoin traded against the US dollar as BTC/USD, but Plus500 was the first broker to introduce a bitcoin CFD. Trading bitcoin through Forex brokers has its advantages and disadvantages, some of which include:Advantages of trading bitcoin through Forex brokers Here’s why you should consider trading bitcoin through Forex brokers:Efficiency Whenever you’re trading an asset, there’s always the concern about how you’re going to check on your trades or place them. Trading bitcoin through Forex brokers eliminates this concern because they will already have trading platforms. It is even more efficient if you do more than bitcoin trading, because then you can do all your trading on one platform. For example, you can trade bitcoin while placing Forex trades simultaneously, which is a very efficient way to invest compared to the alternative.Leverage The current value of bitcoin is $1,129 at the Coinbase exchange, and to buy you would have to pay the full amount for a single bitcoin. When trading bitcoin through Forex brokers, though, you enjoy the same leverage offered when trading the Forex market. With leverage, you only need to put down a small portion of the whole value of the trade and you won’t require the entire amount as actual bitcoin trading. Therefore, you can trade more bitcoins through Forex brokers than through a bitcoin exchange.Certain Forex brokers like Plus500 even offer bitcoin CFDs, which only track the performance of bitcoin. As such, these CFDs require an even lesser deposit, allowing traders to trade even more bitcoin and higher leverage to increase their profits even further.Disadvantages Despite all the advantages of trading bitcoin through Forex brokers, there are also downsides which would make direct trading through an exchange more favorable.Increased cost of trading The brokers who offer bitcoin trading, or bitcoin CFDs as it may be with Plus500, will have to deduct some charges, either as a spread or commission. In the case of Plus500, they impose a spread on all tradable instruments without charging an extra commission.Spreads on Forex pairs, especially the major pairs, are usually very low, but bitcoin and other CFDs will be slightly higher. There are also other charges such as those for holding trades overnight. All these build up over time making trading bitcoin through Forex brokers costlier, although only by a small margin.Absence of a choice of bitcoin exchange When you’re trading bitcoin directly, you can choose which exchange you would like to use for the trade. There are hundreds of bitcoin exchanges around the world, and their values of bitcoin will be slightly different from one another. This slight difference can affect your profits if you’re trading bitcoin as a speculator. With a Forex broker offering bitcoin trading, you would have to accept the exchange they use. It would strip you of a choice, and you may have to settle for less than favorable quotes.If you found your way to this website, chances are you have a pretty good idea of what bitcoin is. Or maybe you’ve only heard about it but don’t really know anything about it. There’s no shame in that; bitcoin and cryptocurrencies in general are still a fairly new technology with ample room to grow. Even though it’s been around for more than eight years, it is my belief that we’re still at the beginning of its potential.So what is bitcoin exactly? Bitcoin is a decentralized digital currency. Individual computers, called nodes, provide the computing power to operate the network. There are no physical bitcoins. Instead, all transactions are recorded on a public ledger known at the blockchain. When there’s enough agreement among the nodes that a transaction has occurred, it is confirmed on the blockchain.Since the network is decentralized, it would be extremely different—if not virtually impossible—to destroy the network. The nodes operate independent of each other and so they can come and go as they please. Presumably, there will be enough nodes in operation at any given moment to keep the network running smoothly and without interruption.The question, of course, is why would someone offer computing power to the bitcoin network? Electricity costs alone can be quite substantial, so there has to be some incentive. The nodes are offered rewards for their computing power. They “mine” bitcoin by solving blocks of code. The more blocks of code they solve, the more bitcoin they receive. But there is a finite amount of bitcoin available and as more and more get mined (as well as more nodes are added to the network), it becomes more difficult to solve each block. Fortunately, there’s another way to earn a reward. Transactions need to be processed and when bitcoin was more easily mined, nodes would process them at little to no cost. Yet as the mining difficulty increases, there’s more of an incentive to offer to process transactions. These keeps the nodes in the network.There is no set price for processing transactions. Transactions with high priorities or those who desire to have fast transactions can attach higher processing fees to their transactions. This ensures that they get attended to first on the blockchain.So where does it get its value? People trust bitcoin as a safer way to store their wealth than traditional means. It’s a way to escape central banking and it allows money to be returned to the people. Much more practically, it eliminates the need to use a trusted third party to send money back and forth. It’s peer-to-peer money. We all use services like Paypal, but we have to trust that Paypal won’t do anything “funny” when we send them our money. With bitcoin, the trust is no longer necessary since the middleman simply does not exist.One misunderstanding about bitcoin that exists is that it’s anonymous, but this is a confusion of what’s going on. It’s actually completely public since every transaction is recorded on the blockchain for anyone to see. People store bitcoins in digital wallets that have public alphanumeric addresses assigned to them for sending and receiving bitcoin. These addresses are what is displayed on the blockchain. So someone would have to trace that address to you in order to know that the transaction involved you. There are ways to make it more difficult to do this if you do want to secure some actual anonymity.This all may sound complicated, but bitcoin is actually very easy to use. I would explain it here, but it’s so self-explanatory once it’s time to send or receive money. As I’ve mentioned earlier, bitcoin is stored in a wallet that you download to your computer. There plenty of free wallets available, like Blockchain.info, or you can go a more secure route and purchase a Trezor wallet like I have and love.Once you’re set up with a wallet, you need to fill it! You can find someone willing to sell you bitcoin and they can trade you bitcoin for whatever the two of you agree to. Or you can use a service like Coinbase, which I have used with a lot of success. If you use this link to join Coinbase, we both get $10 worth of free bitcoin once you buy or sell $100 worth of bitcoin. Not bad, eh?As of my writing this (and it’s bound to change maybe significantly by the time this post is published), one bitcoin is worth $5413.76. That’s an almost $4800 increase over the last year. Because of this, a lot of people feel like they’ve missed the boat on bitcoin. I don’t think it’s possible to ever miss the boat. I have no idea what bitcoin will be worth tomorrow or next week or next year. But I do truly believe that bitcoin is here to say and that it’s worth having.
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