Bitcoin has grown in popularity, so you may be tempted to buy Bitcoins and hold on to them. If, however, you are a trader, then you may be looking instead to profit from short-term swings in the value of Bitcoin.
Using a forex broker, you could trade cryptocurrencies as a spread bet or a CFD. This way, instead of actually possessing any Bitcoin, you can speculate on the rising or falling value of the cryptocurrency.
Trading cryptocurrencies with a forex broker does not really carry any additional expense as all costs are generally included in the spread. With crypto exchanges, investors may enjoy tighter spreads but will usually pay volume-based commissions.
One of the main reasons people are choosing to trade Bitcoin with a forex broker is the safety and security element.
That’s because, while cryptocurrency exchanges present numerous options, they may also be unstable and prone to scams. Indeed, a large number of crypto exchanges specialising in Bitcoin have now disappeared – taking investors’ money with them.
Cryptocurrencies carry a higher risk due to their volatile nature so it is important to trade safely and choose a regulated broker. Brokers like InterTrader are properly regulated and operate under the most stringent regulatory bodies in the world. So, you can speculate on the value of Bitcoin with complete peace of mind.
You should however note that leveraged trading on cryptocurrencies will increase both your potential profits and your potential losses. Make sure you manage your risk when trading cryptocurrencies.
To learn more about trading cryptocurrencies, chat to the InterTrader team now.
You should under no circumstances consider the information and comments provided in this article as an offer or solicitation to invest. This is not investment advice. The information provided is believed to be accurate at the date the information is produced.