Forex trading has a reputation for being a quick and easy way to make money. As a result, many people dream of becoming full-time Forex traders, but few have what it takes to make a living.
Particularly for those who want to buy bitcoins online through the Forex market, there is no need to go through a lengthy verification process as you would on a bitcoin exchange. Provided that you have an internet connection and a computer or mobile phone, you can open an account at one of the many Forex brokerages.
However, there are some critical issues to consider before taking the plunge into trading bitcoins with forex brokers:
Bitcoin trading is a popular topic amongst Forex brokers, and most of them have given the green light to Bitcoin. One of the primary reasons they are allowing Bitcoin trading is because 'they can' without investing in digital infrastructure themselves.
Whether a Forex broker allows Bitcoin trading, not all brokers do. Most regulated online retail Forex brokers only started to accept Bitcoin in 2017. If your broker does not allow Bitcoin trading, your options are limited, and you will have to look elsewhere on websites like Oil Gold Stock
Before choosing a Bitcoin broker, it is essential to ensure that the company itself and its management are trustworthy and reliable. Trustworthy Forex brokers should:
Spreads are the difference between the 'buy' and 'sell' prices for a currency pair, and it is expressed in pips (e.g., if you buy 1 Bitcoin at $500 and sell it at $500.50, your spread is 50 pips). While spreads on most other currencies can be very low or even non-existent, Bitcoin spreads can be as high as 4% or above.
Minimum and maximum trade sizes depend on a few factors: your account type, whether you use market orders, etc.
Most Forex brokers offer over 20 currency pairs for trading, which is more than enough to trade Bitcoin (most other currency pairs are 'exotics,' with very low liquidity). However, some of the most popular Forex brokerages do not offer anything but EURUSD and USDGBP.
The Forex market is competitive, so most brokers offer a few additional features that make their platform stand out from the competition. Some features include:
Most Forex brokers do not require a minimum deposit, and even though some offer micro accounts to beginners with just $5, you will usually need at least $200 in your account.
Once you've chosen one or several suitable Forex brokerages based on the above criteria, it is time to open an account!
Trading Bitcoin with Forex brokers is not limited to specific periods. Except when the market is closed on weekends and holidays.
Several Forex brokers accept Bitcoin for currency trading. The process is straightforward. You can buy Bitcoins from a Bitcoin exchange and then exchange the BTC for any other currency using a Forex broker.