Trading on CFD/Forex Sites Vs. Bitcoin Exchanges
Bitcoin has been growing in popularity on a global scale. It's still relatively new by most standards. Forex, on the other hand, is well known and has been around for a long time. Bitcoin's are a cryptocurrency, a form of digitally stored value. Forex, on the other hand, is a foreign currency exchange platform, where individuals gauge where they can create the most profits by trading foreign currencies.
Another significant difference between Bitcoin and Forex is that Bitcoin is an alternative currency that can be used to purchase goods and services. Bitcoin is great for traders looking to grow long-term accounts and make massive returns. It's a highly volatile platform in which loss and gains can happen very rapidly. It's not uncommon for Bitcoin to drop or raise a few thousand dollars per coin in a single day. BTC also has a genuine potential for becoming a worldwide currency once it stabilizes. There are more and more people rushing to invest in Bitcoin and several other cryptocurrencies as well.
Whether Bitcoin will be the absolute future of money or not isn't the question here, however. It's an impressive technology that some of the best traders in the world are getting their hands into. Traders of Bitcoin can get involved in a couple of ways.
One is on a cryptocurrency exchange the other is through an online forex broker. People will argue for exchanges or Forex brokers. There are good and bad reasons to use both. On a cryptocurrency exchange, you buy actual Bitcoins, and through a forex broker, it's a little different. Instead of purchasing Bitcoin directly, you trade a Bitcoin CFD or contract of difference. A lot of people will argue that forex is better for the sake of simplicity and regulation. On Forex, everything is regulated and operated with strict professionalism. They keep all your funds stored in segregated bank accounts. On cryptocurrency exchanges, however, there is limited protection, and they are entirely unregulated. So, if a trade goes down, you can lose everything.
Some people will say it’s difficult to set up a cryptocurrency account. Getting started is a process, but it’s like that with anything worth doing. The first thing you’ll need to do is find an exchange that can be operated from within your country. And then, there will need to be a way to deposit funds into the account as well. Some traders even open separate bank accounts for the sake of trading, which is a good call for most people.
Most people who trade cryptocurrency will have several different bank accounts operating for various exchanges. Each account is used for a specific reason. With Forex, however, you can set up an account in a matter of minutes. You can deposit currency into the account and start trading right away. Any trades you make with Bitcoin will then be automatically changed to your local currency.
What to Look For
· Transaction Fees
With forex, fees are minimal. It’s free to open an account and to deposit/withdraw your funds. There are also no commissions made on Bitcoin trades. The only expense comes from the spread. It makes it easier to trade fast and manage your funds. But on an exchange, there are fees constantly. They can charge for everything that a forex broker won’t. They can be costly and make it difficult to trade altogether.
· Speed of Execution
You'll be able to make exchanges on forex quickly. And you'll have instant access to several different professional tools. There are a ton of tools when doing it yourself or using an exchange as well, but you'll likely have to spend some more time getting used to them or finding them in the first place. However, a forex broker also has a huge benefit. You can access to leverage a margin; then you can trade any amount you want. You'll be able to trade short and long-term with Bitcoin as well to capitalize on any trends that are occurring. The main thing is if you already area forex trader, then using it for Bitcoin makes sense. You can trade your forex and Bitcoin at the same time from one single platform.
Reliable Bitcoin Exchanges
If you decide to use exchanges instead of forex brokers, there are some great exchanges you can benefit from using. Coinbase is probably one of the largest exchanges for cryptocurrency. Another great one is Kraken, it was founded in 2011 and has a lot of beneficial reasons to use it. These are just a couple of the endless cryptocurrency exchanges on the market.