Bitcoins are digital coins that can be sent through the internet. They are the first decentralized currency. There are a finite number of bitcoins - 21 million exist and they are predicted to last until 2140. The value of the bitcoin is constantly fluctuating and bitcoin technical analysis is required in order to know when to buy and sell this currency. There are currently several online currency exchanges available where one can exchange dollars, euros and other currencies for bitcoins. Bitcoins are traded primarily through bitcoin brokers and reliable Forex brokers that offer bitcoin trading as one of their assets. Read our bitcoin broker reviews below before deciding which bitcoin broker to use.
Only NFA regulated broker that offers binary options
Global bitcoin exchange is ideal for crypto traders
NYS Department of Financial Services
Excellent trading conditions + NFA regulation
MetaTrader 4, Proprietary platform
CFTC, FCA, NFA, FSA, ASIC, IIROC, SFC, CIMA, MAS
Cryptocurrency trading is fairly easy to learn and can be profitable from the first trade. With millions of traders worldwide looking to jump on the crypto bandwagon, you can set yourself apart from the pack by taking time to understand the way the market works and to learn the technical factors that push the prices higher or lower. Setting up a demo account and practicing there before investing with real money can help protect you from losses. Though you may feel pressured to enter the market NOW, when things are hot, it’s worthwhile to take some time to practice so that you can get a feel for the flow, as cryptocurrency trading, and bitcoin trading specifically, doesn’t act like fiat currency trading. Taking a few days to teach yourself can protect your account in the long run.
Regulation: It’s important to deposit with a broker that is regulated so that your money will be protected in the event of an emergency. Not every cryptocurrency broker is regulated (and at the time of this writing, not every exchange is regulated either).
Customer support: Many traders need assistance throughout their trading process, but not every bitcoin broker offers reliable support and fast response times. Before depositing, check the support policies with your broker of interest. Does it offer chat support? Phone support? Email assistance? Make sure that you’ll be able to get the answers you need when you need them.
Initial Deposit: Some brokers require a large minimum deposit while others have no minimum, or low minimum deposit requirements. Don’t feel pressured to choose a bitcoin broker whose deposit is too high for you – you will be able to find one that can meet your needs. Just make sure that you don’t trade with money that you can’t afford to lose.
Charges and fees: In order to entice bitcoin traders, many bitcoin brokers promise ‘no commissions’ on cryptocurrency trading. Make sure to read the fine print to determine if there are rollover fees for overnight positions or other hidden fees that can take a bite out of your profits.
Leverage: Most brokers limit the leverage offered on cryptocurrency trading due to the high volatility of the assets. If leverage is offered, it can range from 2:1 to 30:1. Take care not to use too much leverage as strong movements against your position can cause irrevocable damage to your account.
Free demo account: Cryptocurrency brokers, as compared with cryptocurrency exchanges, usually offer a free demo where you can test your trading strategies before depositing. Take time to take advantage of this offering – it’ll help you stay focused and profitable in the long run.
Trading platform: There are dozens of bitcoin trading platforms available, from the standard MetaTrader 4 to proprietary platforms built by individual brokers. You can choose between web platforms or downloadable options, or a combination of both. Don’t be afraid to test out different platforms to see which one works best for you.
Educational materials: There is so much to say about bitcoin trading, and about cryptocurrency trading in general, but not every broker has taken the time to provide these insights to its traders. Consider whether you need to learn more before trading, or whether you’ve already got the knowledge you need. If your broker doesn’t offer the educational materials you seek, it may not be the right broker for you.
There are several ways to make money trading bitcoin, most of which is done when trading this virtual currency against the US dollar (in market terms this trade is known as the BTC/USD pair). The first (and perhaps the easiest) is to find a top bitcoin broker and invest in the digital currency in the same way you would a physical currency – buy low and sell high. Since bitcoin is an extremely volatile currency you should be able to identify the dips with a bit of studying and bitcoin research.
Bitcoin research can be done on both the fundamental and technical levels (or both, of course). On the technical level, bitcoin technical trends tend to stretch about a year at a time so it shouldn't be impossible to identify and make your trade accordingly. On the fundamental level, traders must look at the number of bitcoin traders, the number of wallets being used and the volume of bitcoin trades to determine what they think the currency should be worth – and then trade accordingly. Though it's certainly possible to make money trading bitcoin in this way, it's definitely more speculative.
No matter what strategy you use to trade bitcoin it's important to make sure that you have chosen the best bitcoin broker to invest with. Don't forget to compare the spreads of different bitcoin brokers to make sure you won't be paying fees that are too high, and the execution time to ensure you'll be getting the price you want. You may also want to consider the leverage available for bitcoin trading so that you can increase your risk/reward ratio and your chances for profit. Most of all we recommend that you make sure to choose a regulated bitcoin broker so that your money will be secure at all times.
“Cryptocurrency mania” is in full swing, and it shows no sign of slowing down anytime soon. It’s perfectly normal or you to want to get in on the action, and to find profits on cryptocurrencies when possible. Make sure to remember that as quickly as prices rise, they can also fall, and that there are several strong technical indicators that can be used to predict market directions for cryptocurrencies. The DailyForex team has tested many of the top cryptocurrency brokers and given you our findings to help you make a confident, informed decision about which broker is right for you, so that you can trade intelligently and comfortably during these exciting times.