It’s pretty amazing how the popularity of bitcoin grows day by day. Due to it’s high demand, many Forex brokers are beginning to accept bitcoins both as a form of trading and also, deposits and withdrawals!
Forex trading on the other hand, deals with trading of currencies. This type of trading was initially meant for big companies, organizations to assist them in making global currency exchanges and transactions. However, today, many individuals are beginning to take part in the “forex game”. This is mostly because they have the impression that trading currencies online could be a gold mine to making big wealth.
The Forex market is the largest and most liquid market in the world controlling more than $3 trillion in exchanges per day!
Currencies must be paired together in the foreign exchange market for trading transactions to take place. This means that one currency is exchanged for another. An example of this is the popular EUR/USD pair. In this example, the EUR is the “base currency” while the USD is the “quote currency”. When traded together in this instance, USD , the quote is used to purchase the base, EUR. The price at which this is done is called the exchange rate for that particular pair.
NB: Interested In Mining Bitcoin And Other Cryptocurrencies for Profit? Now, You Can Mine Better, Faster and Smarter for More Profits With The Ready to Use, "High Performance", and Approved IQ Mining BTC Cloud Service For Miners. With This Mining Service, You Will Get Up to 128% Yearly ROI from Mining Bitcoins Alone Without Having to Buy Any Expensive Mining Hardwares and Softwares! Not Only That, You Will Get Your First Payout In First Few Hours After Buying a Plan With IQ Mining. You’re Also Given a Dedicated Account Manager After You Buy A Plan Who Will Help You With the Best Pool Allocations and Account Setup Plans To Get the Most Out of Your Purchase.
The exchange rate for any pair fluctuates within fairly known limits and this is why professional traders can easily bet on whether a particular currency price will rise or fall for a specific period of time.
Typically, investors make money in the forex market when there are fluctuations in any of the currencies being traded. This explains the reason why bitcoins is beginning to take in the traditional foreign exchange trading.
Once there’s supply and demand for any currency of an economy, there’s a likelihood that the value of the currency will continue to move up and down as many are investing in that economy.
This is why bitcoin forex trading is becoming popular among traders. Currently, people all over the world including individuals, Governments, Organizations, Countries, Security agencies e.t.c are interested in that single topic “Bitcoin”. The interest may culminate in the interested parties either buying/selling bitcoins, exchanging bitcoins, shopping with bitcoins and so on. So, there’s a high supply and demand for bitcoins.
Most Forex trading is conducted through dedicated Bitcoin exchanges, such as MtGox, which allow you to “buy” Bitcoins. Forex trading differs from a traditional Bitcoin exchange in that it is non-executable and you buy Bitcoins in pairs. This means that you can’t simply withdraw your Bitcoins and use them to make purchases. Instead, you invest in a dedicated financial instrument, in this case a currency pair.
Recently, forex brokers are beginning to offer bitcoin as an investment vehicle owing to it’s popularity. Apart from helping to boost their businesses, it allows the traders to make money off of the world’s first decentralized digital currency.
Not many brokers are offering bitcoin forex trading today but the few that are involved with it have a similar way of operation.
Basically, brokers allow you to trade bitcoins (BTC) in relation with any other currency in their platform. This means that they also offer bitcoin in pairs with others. However, not many BTC pairs are in use today. The only one currently accepted by the major brokers is BTC/USD. This is not static and may change in the future as the bitcoin customer base grows even larger.
As a last note, one important thing to note when trading BTC CFDs is the rate at which the value of bitcoins fluctuates. Because of this high volatility, it is recommended that only professional traders should engage with bitcoin forex trading to avoid risk of losing your entire capital.
Help Us Fight Scams. Please Donate to Support Our Work. No Amount is too Little or too Big. Thank You..
February 8, 2019 By Ghazanfar
The phrase ‘Necessity is the mother of invention’ seems true for Iran. This is because Iran has unveiled its own...
February 8, 2019 By Ghazanfar
In spite of long bear market, Bitcoin transactions per day are increasing. Today the level of these transactions has touched...
February 4, 2019 By Ghazanfar
Although bear market in crypto world is extending, yet many fiat currencies are facing the threat of destabilization. This is...
February 4, 2019 By Ghazanfar
In spite of mix signals from the cryptocurrency world about the future of cryptocurrencies, many countries are planning to test...
February 3, 2019 By Ghazanfar
The idea of Bitcoin adoption as an international currency is not at all new. Over the years, many financial experts...
February 2, 2019 By Ghazanfar
Bitcoin’s entry into the longest ever bear market in history is one of the most burning issues of today. The...
Valforex.com cannot be held liable for any damages incurred due to the usage of any information displayed on this website. The information and trading guides found on the website constitute the authors’ opinion only. Both Forex and Binary options involve high-risk and are not suitable for all investors. Either Forex or Binary options may not be legal in your jurisdiction. It’s visitors’ responsibility to make sure these entities are legal in their jurisdiction before engaging in trading activity… Read More