The optionality of cryptocurrency makes it an excellent investment vehicle. In other words, bitcoin trading offers the same level of trading flexibility as stock trading but in cryptocurrency. As a bitcoin trader, you can either place your buy or sell orders for bitcoin, Litecoin or dogecoin. However, there are two important features that differentiate it from stock trading.
· First, you can perform buy and sell trades on bitcoin exchange platforms in just a few minutes with just a couple of dollars.
· Secondly, you can trade in real time. Because the bitcoin exchange rate varies on a minute-by-minute basis, you can buy and sell immediately after the market closes. You are usually able to identify the best times to trade, based on the best Bitcoin Coin Hour, as well.
Here are five pros of trading forex in bitcoin and you can access top forex brokers list here:
1. Lower Transaction Costs
On Bitcoin trading platforms, the transaction costs are extremely low. Since it is all based on the same peer-to-peer network, the cost of every transaction is the same, regardless of the number of trades you make. In the end, you pay less than 1% of the money you are investing in forex trading.
2. Share the gains equally
As in stock trading, you can receive your profits or losses equally. When you enter a large number of orders, you can sell some of them on margin and earn a little more than you put into the trade. However, the maximum margin you can place is 25% of your account balance. So, the largest advantage of trading forex in bitcoin is that you can make profits or losses in the same proportion. In other words, in bitcoin trading, your profit or loss can be shared equally with the entire trading group.
3. More Freedom to Choose
If you choose to pay with bitcoin, you are free to choose from various bitcoin exchange platforms. In other words, you can use the biggest ones like Coinbase, Circle or Gemini to conduct your trades, or the smaller ones like Local bitcoins or Sheep shaver. In either case, the costs are the same. In the end, it depends on your preferences. However, on the Bitcoin trading platform Coinbase, you are paying with the smallest number of bitcoins.
4. Operational support and security
Like any other kind of online business, you have to ensure that your trading platform is secure. Therefore, you should try to choose one that operates 24 hours a day, seven days a week. In the same way, your trading platform should have competent administrators and customer service representatives to help you solve any issue that might arise in the course of your trading. However, be warned. If your trading platform goes out of business for a couple of months, your bitcoins might be lost.
5. The low-risk
No matter how low the fees are, if you are not sure that you can make money, or if you are very poor at cryptocurrency trading, you should steer clear of it. On the other hand, if you have the same qualifications that you have for stock trading, or if you are better than most of the crypto traders in your community, the lower risks might make the bitcoin trading platform worth your while.
In a nutshell, trading forex in bitcoin is more challenging than most stock trading. And it is much more rewarding. As you can see, it’s not an easy decision, but it’s a sound one, too.