Before one starts trading in Bitcoin,it is important to get the services of a trustworthy and reliable Bitcoinbroker. But because the market is also flooded with Bitcoin brokers, there area few factors to consider when choosing the best Bitcoin brokers. The best Bitcoin brokers are those that are easily accessible to their clients. Consider one who is available throughout the day as Bitcoin trading is a 24-hour activity. Accessibility and their ability to deal with your issues conclusively are important. Their customer support service should be available 24 hours a day. Take time to choose your preferred Bitcoin broker. It might be a tiring process but is a necessary investment that will definitely save you a lot of disappointment later.
Best Bitcoin Brokers
|| Best Bitcoin Broker via CFD
||Best Bictoin Broker for Binary Options
|Best Bictoin Broker via Forex|
Best Bitcoin Broker for Forex/CFD/Binary
Risk Warning: CFDs, Forex and Binary Optionsn are a complex financial products, the trading of which involves significant risks of loss of capital. Leverage in CFDs can work both to your advantage and disadvantage. Before deciding to trade, please ensure that you fully understand the risks involved. Do not deposit more than you can afford to lose. CFDs are not appropriate for all retail traders.
Consider the perks and benefits that a Bitcoin broker offers. These should be as customized for you as possible, without necessarily costing extra. But if the benefits do not add value to what you want, consider instead looking for a discount. It is also important to note that if it is necessary for the broker to offer these perks and benefits, they might not really have much to offer at all.
Choosefrom the list of regulated Bitcoin brokers. This ensures your concerns are protected by the regulating body. The regulating body is tasked with ensuring the integrity of the traders, the investors and the market is maintained.
Bitcoin brokers use different tradingtools and offer different commission rates. Long-term investors might find it is better for them to buy the underlying assets while those speculating on theshort term might prefer the flexibility and lower margins of the Contract for Difference. Active traders on the stock market should steer clear of buying Bitcoin-related security as it does not offer 24-hour trading and moves low volumes. It is more suited for traders who are passive.
How to Trade In Cryptocurrency
Although Bitcoin is the most popular, it is not the only form of cryptocurrency available in the market. It has however set the standard for the cryptocurrencies though. Transaction fees with Bitcoins are much lower than when using traditional payment systems. Bitcoin trading uses digital peer-to-peer technology that reduces risks involved in transactions involving money, thus increasing efficiency.
Ethereum on the other hand is run on ether, which is platform-specific. Distributed Applications and Smart Contracts can be built on Ethereum and run without cases of fraud, downtime or outside interference or control. With a market capitalization of over $86 billion, Ethereum is the second leading cryptocurrency after Bitcoin’s $179 billion. Ethereum has also grown in popularity over the years, since it was first introduced in 2015. There are tons of others but these two are the most used.
Are you interested in cryptocurrency? Do you want to know how to trade cryptocurrency? For your help, followings are three ways to trade cryptocurrency.
The cryptocurrency industry is growing fast due to its better-earning probabilities. It is powered by the blockchain technology. This technology is used to verify the transactions made by the public addresses and controlled by the private keys across the network. In this trade, you can trade cryptocurrencies such as the Bitcoin and Ethereum.
In addition, some initial coin offerings that use cryptocurrency for the financing will be regulated as the securities, as announced by U.S. Securities and Exchange Commission. Options on cryptocurrency derivatives will be launched soon, said by the Chicago Board of Options Exchange. Now some investors identify cryptocurrencies as the class assets. All these developments inspire many to invest in this industry.
Three ways to trade cryptocurrency
Bitcoin: Three ways to trade
- Consider buying an underlying asset. You can buy from an online broker or an exchange.
- Trade a Contract for Difference (CFD). You can trade on hold cash margin and derivative with a multi-asset broker or an online broker.
- Consider publicly listed security. You can hold the shares with an online stockbroker.
Buying underlying assets
With this option, you will be the direct holder of your digital asset. Once you buy the asset, the cryptocurrency will be sent to your wallet. You will have the freedom to transfer them to any Bitcoin address using your private key. It will have the following positive and negative consequences.
- You will have full control over your actual digital asset.
- It will be versatile.
- Your wallet or digital account will be secured with a private key.
- No one can access your private key as it will be stored offline.
- You will have different payment options to store or transfer your asset.
- Your private key needs to be stored carefully.
- You will have to remember the password if it is stored online.
- You will need some technical expertise to facilitate the process.
- Your private key can be hacked and can be subjected to phishing.
- If you lose your private key, you will never be able to access your wallet.
Buying underlying asset can be a safe option with some prudent steps. You need to understand the process and then you can store the private key secretly to avoid any risk. Your private key will play an important role to protect your digital asset. You will find many bitcoin exchanges for the investment that include Kraken, Binance, Coinbase, Poloniex, and Bitfinex. You will have to consider a safe option to maximize the profits and to minimize the risk. Among all these exchanges, coinbase is preferred by the US-based investors. The non-US clients consider the Swissquote. There will be different exchanges for different parts of the world. You just need to go through all the details before focusing on one.
Trading as a CFD
- You do not need to safeguard your private key.
- You will have more buying power with the greater level of leverage.
- The transactions fees might be lower depending on the broker and liquid sources.
- You will be allowed to open a selling position without having a buy position.
- The trading cost will be more than the first one.
- There is no certainty on the trade as it can be canceled when there is some fault in the system. If the client violates some agreement policy, then the trade will be canceled.
- You will have to rely on the broker to manage the risk.
- If the broker declares bankruptcy, you will have to face significant losses.
- There will be the possibility of the negative balance depending on the market condition.
Trading as a CFD can be profitable if you choose a reliable and experienced online broker. Many things will depend on the broker and his credibility. They can offer you a lower margin, twenty-four hours trading, and to trade either for a short or long. Some of the popular forex brokers are ADS Securities, Admiral Markets, Alpari, Ava Trade, IC Markets, Forex Club, IG, and XM, and WWM. You will find many online brokers. You just need to choose the right one to ensure more profits and less risk.
Bitcoin Related securities
- You will have an alternative investment option without any private key. It is designed to replicate the performance of your asset. It can also act as a trust that will hold the bitcoins to buy without the requirement of a private key.
- You do not need to protect your private key in the best possible manner.
- The trades will be on publicly listed securities on the exchange under some exchange guidelines.
- The price of bitcoin and security will vary that might cause tracking error.
- It will be tradeable in the exchange hours that will limit the option. The traders cannot trade for twenty-four hours in a day.
- The traded security volume might be less than the available volume of the asset.
- There will be a difference in the cost of the underlying asset, fees, and spreads.
If you are looking for a passive position, you should consider this trading option. You might not be a good option for the active traders as there will be a restriction on the trading hours and lack of volume. But yes, the listed securities that track, invest or hold Bitcoin can be an ideal alternative to safeguard private keys while buying the underlying asset and to diversify the risk of the margin trading. Some popular stock brokers that offer this trading are Fidelity, TD Ameritrade, Charles Schwab, Interactive Brokers, and Saxo Bank. In the current condition, there are only a few options available such as the ticker symbol GBTC and US-based OTC Markets Exchange. These options will be available at some popular online brokerages that include Fidelity.
The Bitcoin network divided into two different blockchain versions following a conflict in August 2017. The new coin known as the Bitcoin cash is awarded to every Bitcoin held prior to this division. It can create some major challenge for some popular Bitcoin-related trust. When it comes to the ways, all these three ways are widely used. You can consider any of them depending on your requirement and preference.