How to trade bitcoin

 

How to trade bitcoin, As the world's No. 1 virtual currency, bitcoin is seen by many as the most challenging currency for traditional currencies. However, when looking at Bitcoin's history, it appears that a lot of volatility awaits this currency.

 

You can start trading Bitcoin by following the following four steps:

·       Decide on the format you want to trade Bitcoin in.

·       Learn what drives Bitcoin's price.

·       Choose a Bitcoin trading strategy.

·       Make your first trade.

 

Bitcoin trading methods

There are two ways to trade bitcoin: either by buying the currency itself hoping to sell it and making a profit by that, or speculating on its value without owning the symbol, and that is how contracts for different work.

 

A CFD enables you to trade the contract based on prices in the underlying market. CFDs are considered leveraged products, meaning that you can place a small initial deposit, and still get higher exposure. This may magnify your profits, and it may have the same effect on your losses.

 

Should I use an exchange to trade bitcoin?

You don't deal with exchanges directly when trading Bitcoin with IG. Instead, you will trade on the buy and sell prices from several exchanges on your behalf. To open a bitcoin CFD position, all you need to do is obtain an account to trade with IG.

 

Bitcoin exchanges operate in the same way as traditional exchanges, allowing clients to buy currency from them or sell it to one another. However, a set of features are completely absent in this case:

·       These exchanges lack adequate regulation, public records, and the infrastructure to respond quickly to requests for support

·       The compatibility drivers and servers in use cannot be trusted, which may lead to market disruptions or reduced implementation accuracy

·       These exchanges impose fees and restrictions on the financing and withdrawing from your account with them, while the accounts themselves may take days to obtain these balances.

·       By trading Bitcoin CFDs, you get a significant improvement in liquidity, at the rate you choose. When you buy and sell directly from the stock exchange, you often have to accept several prices in order to be able to complete your order.

 

What are the factors that affect the Bitcoin price?

While bitcoin volatility makes this hypothetical currency an attractive opportunity to trade, it also makes it a risky market to speculate in. Bitcoin prices may change drastically and suddenly, and since the Bitcoin market is operating around the clock, it could happen at any time of the day.

 

Fluctuations in Bitcoin price are driven by a number of external factors, including:

 

Display

There may be a limited supply of bitcoin, 21 million, all expected to be "mined" by 2040. However, currency abundance fluctuates depending on the rate at which it enters the market, as well as the activity of the bitcoin holders.

 

Market value

The value of the bitcoin market is affected, how the currency is perceived as valuable to customers and whether they are looking to buy it as soon as we get the opportunity or sell it as quickly as possible.