Trade on cryptocurrencies
We have seen the advantages of cryptocurrency, such as bitcoin, over traditional currencies, and we have found that, despite the differences, these currencies have the same functions as the usual currencies.
There is another area where cryptocurrencies look like their big sisters is the possibility we have to speculate on their values.
It is not necessary to have bitcoin (we will stay for the moment on the example of bitcoin) to trade on its fluctuation and the instability of its value.
Speculating on Bitcoin: Trading
This consists of speculating on a gain or a loss of value of bitcoin for a given time.
Thus, depending on the duration of the contract that you have chosen with your broker, you speculate on the value above or below that defined initially.
The important thing is to choose a good broker who can follow you in your speculations.
Bitcoin is therefore a currency like any other (but which is in no way regulated by a government or a state), so we can trade, thanks to this option, without the need to pre-define a bitcoin value but we will instead use leverage to make money.
The interest of trading bitcoin
Capitalization of cryptocurrencies has increased four-fold since April. In the month of June it exceeded 100 billion dollars. Bitcoin went from $ 1,000 in March to $ 3,000 in June !! Then he dropped $ 500 in four days! In markets where volatility is scarce, virtual currencies are an exception, and their values are racing.
Bitcoin is also not the only cryptocurrency to have seen its capitalization soar, the ethereum too (its value has been multiplied by 40 over the same period). Second interest: speed. When you actually buy a virtual currency, it takes time because the process goes through brokers, and it can take up to a week to open an account. Hence the ease of trading for which you do not need to open an account or own the currency itself.
How to choose a broker?
What are the criteria to take into account when choosing the best broker for trading bitcoin?
The trading platform you choose will have to be easy to use and easy to understand. You must also be able to trade 24 hours a day. That it can offer you a leverage. That you can trade through PayPal, Visa, MasterCard or another bank card, or any other means of payment.
Means of communication with the broker.
It is important to check the means of communication that are available to you: phone, Skype, email, so you can be reactive very quickly on your position, given the extremely volatile prices of cryptocurrencies.
Are there other currencies than bitcoin?
It is important to check the assets offered for trading, ie, whether there are other cryptocurrencies in addition to bitcoin, or traditional currencies, forex or equities.
Also make sure that the chosen platform is regulated to be sure of its stability as well as the fairness of their products.
The most regulated brokers are often the safest.
Thus, trading bitcoin, or other cryptocurrencies, as for traditional currencies, is to predict its price up or down.
The bitcoin trader’s interest resides in the fact of the geopolitical independence of this currency, which makes it a perfect trading subject: a currency directed solely by the market without the political interest of the state that supports it.
And as we have seen, the speed and ease that trading gives us.