Trading Forex With Bitcoin: How Does It Work? (XOM, EXPE)
Beyond the exchange rate fluctuations impacting profit and loss, there are other benefits and risks to consider before trading forex with bitcoin.
Currencies are traded in pairs. This means that one currency is exchanged for another. So USD/Euro and Euro/USD refers to two separate trading pairs. The first currency refers to the “base currency”, which means that USD is the currency being bought, and Euro is the currency being sold. In the USD/Euro pair, you are using Euros to purchase dollars. If you use Euros to purchase dollars, you are essentially betting that the dollar with rise in relation to the Euro, and the Euro will likewise fall.
The foreign exchange market, commonly known as “ Forex ” or “ FX ”, is the exchange of one currency for another at an agreed-upon price .
Coinbase claims that over 97% of all customer funds are stored offline in bank vaults to prevent theft or loss. If you live in the States, you can easily link your bank account to Coinbase to facilitate quick and easy bank transfers.
But how to choose the right trading platform? There are many and more solutions to choose from around the Internet. The prospective traders can look for certain features that can help the decision which platform suits best their needs.
The growth of bitcoin trading has created a multi-billion industry that allows individuals to buy or sell the cryptocurrency across a large number of exchanges. Several broker s state that they permit bitcoin trading as part of their forex trading services. But investors should know a few simple realities about how using bitcoin trading and forex trading actually work.
Unlike fiat money, Bitcoins and other cryptocurrencies have no central bank that controls them which means that cryptocurrencies can be sent directly from user to user without any credit cards or banks acting as the intermediary. The major advantage of cryptocurrencies is that you can’t print them like central banks do to create fiat money.
Risk Warning: Vantage FX Pty Ltd ACN 140 903 886 is a Corporate Authorised Representative (Rep No. 343547) of Vantage Global Prime Pty Ltd AFSL No. 428901.
Investing in over-the-counter derivatives carries significant risks and is not suitable for all investors. Information provided is of a general nature only and does not take into account your objectives, personal circumstances or needs. The PDS and FSG are important documents and should be reviewed before deciding to enter into any over-the-counter derivative transactions with Vantage FX Pty Ltd.
ACN 140 903 886 | Rep No. 343547 of AFSL
All you will need to do is create an account with a Forex broker who accepts Bitcoin; you can then start trading! You will need to understand the various contract options available in order to know which the best deals to trade on are. This is why it is important to complete some research before you start trading; as with any investment market, trading can be fast paced and you can easily lose funds.
Among others top vendors accepting bitcoin are Las Vegas Casinos as well as Lamborghini and McLaren Dealerships who Drive Bitcoin Adoption in USA!
EasyMarkets is an established Forex broker that is licensed in Australia by ASIC. Spreads for Bitcoin are $90, and EasyMarkets has a great web based software for trading, see here .
The exchanges selected show our opinion only and is not responsible for any losses that may happen by trading on these trading platforms.