How to choose a reliable Forex broker for trading cryptocurrencies? Bitcoin and altcoins have become full-fledged trading tools, the prices of which regularly update historical highs. Why did cryptocurrencies become a trend? In fact, they are the first product of advanced blockchain technology, on which the future of world finance depends. Their sphere of application is constantly growing, as is the recognition of the cryptocurrency by the governments of a number of countries.
The long-term growth of bitcoin rate spurs the interest of investors, who consider cryptocurrencies as an alternative to traditional instruments of profit making. However, the ambiguity in the regulation of the cryptocurrency market and its high volatility in the period of formation create additional risks for private investors. In such conditions, choosing a reliable Bitcoin broker becomes particularly important.
Bitcoin broker reviews will allow you to compare the data of popular forex brokers and reviews of their customers. When searching for a broker, check its licenses and the period of its operation in the market. Look at whether other pairs are available, except for the standard BTC/USD, what the minimum account sizes are, deposit conditions, as well as spread and leverage. An additional advantage would be an easy transfer of funds between your forex and cryptocurrency accounts, as well as the availability of technical and fundamental analytics for traded cryptocurrencies.
Choosing a broker based on these factors can help you reduce risks when entering this promising market. Golden FX has it all and can offer you great opportunities to earn a lot.
The Bitcoin currency appeared in 2008 thanks to the Japanese Satoshi Nakamoto. Initially, the currency was issued by e-mail. The first Bitcoin client was developed in 2009. Nakamoto always tried to remain anonymous and worked with other programmers in secrecy. In 2011, the mysterious founder of the famous cryptocurrency finally disappeared, while his companions, realizing the full value of the project, began working to get the maximum out of it.
By October 2009, the first Bitcoin exchange appeared where 1,309 units of digital currency were given for 1 dollar. Given the current rate, such a price can be considered free. However, in 2010 everything began to change. As the currency developed, its popularity, demand and, consequently, the price grew. The same year, the Bitcoin rate went up steadily, and by November more than 4 million coins had been mined.
Cryptocurrencies, especially Bitcoin, are becoming more popular. The number of people who want to buy and trade Bitcoins is growing. Bitcoin exchange is a good opportunity to earn money on changes in the assets’ value. The advantage is that you can trade on any day of the week and round the clock because cryptocurrencies are a completely decentralized asset.
You can earn thanks to Bitcoin trades every day, unlike long-term investments. The volatility of Bitcoin and other cryptocurrencies is quite high, changes in the rate of Bitcoin per day can reach on average 10–20%.
Trading Bitcoins on the trading platform implies the receipt of profit, which can be obtained during the change in the exchange rate. Buy cheaper and sell more expensive – the resulting difference will be your earnings.
If you do not want to wait for the time until the asset grows in the future, you need to trade. To do this, select the entry and exit point. It seems that everything is simple, but for this, you need to analyze the trading schedule of the pair and study news to predict the movement of the trend.
You can analyze charts in ways that are used in the forex market (technical analysis). You can put technical indicators on the chart that help determine the right direction and entry point to the market. There are trend indicators and oscillators. For example, the Moving Average indicator shows the value of the average price for a period of time. Buying signal is when the price chart crosses the Moving Average from the bottom to the top, and selling signal is when the price chart crosses the Moving Average from the top down.
The basic concept in technical analysis is the lines (areas) of support and resistance conducted through the highs or lows of the price. If they are parallel, then they form a trend channel (trend). In these places are the largest number of issued orders for purchase or sale.
Bitcoin is not only the first but also the most famous cryptocurrency with the largest capitalization, so most traders choose it. One of the main reasons for the popularity of Bitcoin is the volatility of this currency, thanks to which it is possible to earn on it. The more volatile the asset, the more opportunities it gives to the trader, and therefore Bitcoin is highly valued in the financial markets.
Bitcoin volatility is often fueled by the media – as soon as some important news comes out, volatility is increasing, and traders are immediately on the market. The history showed that the traders themselves strongly influenced the growth of Bitcoin’s popularity. This currency is also increasingly used to make purchases in online stores, for currency transfers, and investments. Currently, more and more traders are turning to Bitcoin, and therefore the price of the cryptocurrency is rising. Demand for Bitcoin is not weakening even with a complete lack of control by states and central banks.
Bitcoin issue process is called mining. Mining is carried out with the help of powerful hardware and software resources. The maximum number of Bitcoin currency units is limited to 21 million. Thus, Bitcoin is not a renewable resource, and the fewer Bitcoin units are left for mining, the higher this currency will be valued by analogy with oil, silver, and gold.
Do not miss the opportunity to make a deal on Bitcoin by starting trading now at Golden FX.
The Bitcoin review on Golden FX shows how to trade Bitcoin:
You can see the orders in the Trading History, the limit trade order can be canceled at any time. If the Bitcoin exchange rate drops to the specified value, the order will be executed. This can take some time or will never happen if the cost goes far up.
Then, the purchased cryptocurrency can be transferred to a local purse or sold on the exchange by creating a limit order at a price higher than the purchase. The difference will be the profit from trading Bitcoin.
According to Bitcoin user reviews, Golden FX gives the opportunity not just to trade Bitcoin but also represents a ready-made financial portfolio for cryptocurrencies.
The portfolio is a kind of synthesis of the most advanced cryptocurrencies. It includes the most promising cryptocurrencies in the world: