Bitcoin is a cryptocurrency which has rapidly grown in terms of popularity. Currently known as the leading digital currency, it is a peer-to-peer electronic cash system that runs on a complex algorithm using open source code. With its highly volatile and fluctuating prices, traders see a huge potential to make a profit from investing this digital currency in CFDs.
Just Like Trading Physical Currencies
Similar to other currency exchanges, you are basically buying one currency with another. For a physical currency like the US dollar, its relative value reflects its economic and financial situation and the same logic works for Bitcoin with the exception that its price is dependent on supply and demand and not on any change in value of underlying assets. Just like any other currency, it can be traded with a brokerage that accepts Bitcoin.
The Need for a Trusted and Reputable Brokerage
A broker act as the intermediary which exchanges Bitcoin to other physical currencies like the US dollar and vice-versa so basically, it’s the same logic on how you will make a profit or loss. If you know when is the right time to make a buy or sell, then you will be able to make money from trading Bitcoin CFDs. And due to its high volatile state, this cryptocurrency has captured the interest of forex traders.
If you’re planning to invest in Bitcoin, we highly recommend that you only choose a regulated brokerage like AvaTrade. Below are the advantages of trading Bitcoin with this broker:
• Leverage of up to 1:20
• Trade for as low as $100
• Access to the BTC market 24/5
• Practice using the demo account
• Availability in 2 platforms (AvaTradeAct and MT4)
Currently, they offer the Bitcoin versus the euro (BTC/EUR) and if you also want to explore other digital currencies, they also have the Ethereum Classic versus the American dollar (ETH/USD) as another instrument to trade on.
You may click here to directly access their website.