For those who are not familiar with the term, Bitcoin is a kind of cryptocurrency. Much like the U.S. Dollar or the U.K. Pound, you can use bitcoins to trade in the foreign exchange market. The defining trait of bitcoins, however, is that it has no physical central bank that regulates it in the way that normal currencies are regulated.
Instead, the bitcoin works exclusively via the internet. It operates through a digital platform that serves as its ledger where all bitcoin transactions are publicly and permanently stored. Because it works through the internet, no government could ever have any form of control over bitcoins – which makes it fascinating as a revolutionary form of monetary exchange.
What’s more is that bitcoins as a form of cryptocurrency is known for being impenetrable to hacking. The algorithm that guides its ‘cyber ledger’ makes it impossible for hackers to mess up with the system.
The potential of bitcoin trading is a trail of endless opportunities. Since the first bitcoin was launched in circulation in 2009, various other brands and stock brokers have come to see the value of using this digital currency. Today, there are around 700 companies offering bitcoins and an estimated 16.78 million bitcoins in circulation worldwide (approximately $239 million in USD).
Aside from its lucrative success in recent years, here are a few more reasons to start trading with bitcoins:
Convenience – With bitcoins, you can send and receive money to and from anywhere. As a global and uninterruptible currency operating via the internet, secure fund transfers and transactions can easily be done. What’s more is that bitcoins don’t require excessive fund transfer fees that banks usually charge you.
Security – One of the things that made Bitcoin such a successful endeavor is how it is designed to be un-hackable. Bitcoins are encrypted in the most sophisticated way in order to protect the integrity of the currency. In fact, since the invention of Bitcoin, it has operated without any major disruption including hacks.
Free from government influence – One of the major advantages of bitcoin trading is that its valuation can never be influenced by local economic issues such as inflation and interest rates. Furthermore, its nature as a global web currency makes it immune from geopolitical pressure from nations vying for economic dominance.
Low deposit needed – Bitcoin trading is quite accessible. You can start trading with as little as $25 and trade it with bitcoin-accepting forex firms. Some firms even offer promos with higher currency to bitcoin exchange rates. Plus, because it is an emerging forex trend, brokerage costs are being kept very low in order to attract more investors to trade with bitcoin.
Lucrative potential – Much like regular currencies, the bitcoin forex value also fluctuates based on supply and demand. The bitcoin system is also designed to implement a cap to the number of crypto coins circulating over the web making it a competitive and highly valued currency. Various investors have seen lucrative profits from trading bitcoins especially with double wins from forex and bitcoin exchange profits.
Bitcoin Trading: How to get started
Now that you have one or more reasons to start trading with bitcoin, here’s a guide to help you stop asking and actually start investing.
Step 1: Get a Bitcoin Wallet.The first step for anyone wanting to get started on bitcoin trading is to get their own bitcoin wallet. Bitcoin wallet allows users access to a bitcoin account. The wallet comes as a software application which can be downloaded via mobile, desktop, or through the internet. Bitcoin wallet applications also have its own advantages and drawbacks so make sure to do your own research before choosing the right one for you.
Step 2: Buy! Buy! Buy! Now with your own wallet, you can start purchasing bitcoins. Bitcoin purchases can be done in a number of ways such as 1) accepting bitcoin as payment for services, 2) getting bitcoins from a friend, and 3) purchasing bitcoins from bitcoin-accepting forex firms. The most secure way however, is to purchase bitcoins directly from stock exchange firms. Just make sure not to buy from third party sources that are most often unregulated.
Step 3: Register for a Forex trading account.Before you start investing, you should first register for your own forex trading account with any bitcoin-accepting broker at the stock market. After completing the requirements and setting up your account, you can now start choosing which currencies to invest in.
Step 4: Start to invest.Like any type of money, you should always be careful in handling bitcoins. At the same time, bitcoin trading is still a form of investment and investments always come with their own risks. While bitcoin has enormous potential especially with the occasional increase in its value, you may want to consider taking a few online courses in order