on the crypto
Nowadays, everyone knows what a Bitcoin is. In fact, more and more people are learning about cryptocurrencies in general, and not just the most important ones. As a result, many people want to take advantage of this new type of currency.
Even though cryptocurrencies have been here for some time now, people only now understand how useful they can be, especially in trading. Therefore, they started looking for Forex brokers who also trade in Bitcoin.
However, there are a couple of things you should know before starting to work with a broker.
Regulated Forex brokers
Even though most unregulated Forex brokers accept Bitcoin, it is very important to search for and use only the regulated ones. If a Forex broker is not regulated, this means that he cannot be held liable if, for example, he closes and does not return the funds.
Given that a Bitcoin is currently worth around $ 8, it's obvious that you don't want to trade it on an unregulated platform.
Why should you trade Bitcoin through a Forex broker?
Here are the main reasons why Bitcoin trading through a Forex broker is advisable:
- Security - As mentioned above, you don't have to trade Bitcoin with an unregulated Forex broker; the same goes for a Bitcoin exchange. There have been many cases of fraud and scams involving Bitcoin exchanges, so it is much better to simply rely on a Forex broker.
- Lower charges - exchange services usually take a commission in order to earn money. They usually charge around 5%, which means you will lose € 5 for every € 100 you earn. On the other hand, the fees charged by the Forex brokers are much lower, even starting from 0,1 pips.
- Leverage - Brokers exist with a leverage of 1: 100. This means that if you have to buy a Bitcoin worth € 1000, you will only need € 10 to buy it. Also, if the price of what you purchased has gone up and made you a profit, you would keep the whole profit - € 100 or more - even if you only put € 10 in that investment.
- Multiple ways of trading - With a Forex broker you can use Bitcoin to make a profit, regardless of whether the value of the cryptocurrency falls or rises. This is because you can also sell Bitcoins shortly, allowing different ways to exchange your currency and not only convert it into money, as with exchanges.
Forex brokers for Bitcoin trading are definitely the future. If you mine Bitcoin, for example, such brokers are one of the few ways you can increase the overall value of your Bitcoin.
On the other hand, if you are a speculator and surprise the market, you can buy Bitcoin at a low price and then exchange it for other currencies that you think may increase in value.
However, it is important to also know the risks, in particular the risk arising from unregulated Forex brokers. It is better if you use the most reliable brokers on the market!