Bitcoin is never too far from the headlines. Ever since bitcoin first entered the public consciousness back in 2009, its been a rollercoaster ride. Anyone who invested $100 in bitcoin in 2009 is rich now. But it hasn’t all been plain sailing. Bitcoin hit the heady heights of nearly $20k at the end of 2017, but the bottom fell out of the market this year and it has continued to fall. However, many experts believe this price correction is to be expected and bitcoin will eventually recover.
Whether it does remains to be seen, but in the meantime, it makes sense to invest in Bitcoin while prices are relatively low. If Bitcoin – and cryptocurrency in general – intrigues you, here are three different ways to trade bitcoin.
Bitcoin is by far the most traded cryptocurrency. Around 50% of all crypto transactions related to bitcoin. The easiest way to trade Bitcoin is to buy and sell the underlying asset via a cryptocurrency trading site.
There are numerous cryptocurrency trading websites out there. The best-known include Coinbase, Binance, and Bittrex. You can choose to store your Bitcoin in an e-wallet or offline on an external HDD.
There are advantages to doing it this way. Firstly, you own the underlying asset, so you are free to buy or sell when you want. If you store your bitcoin offline, it is secure from online hackers. For investors looking for a long-term investment solution, owning bitcoin is the best option. But make sure you use a reputable bitcoin trading website and keep your asset secure. There are have been many instances of bitcoin theft in the last few years.
If you don’t want the hassle of owning bitcoin, consider trading in it. It is now possible to trade bitcoin just like any other currency. Many online forex brokers include cryptocurrencies in their FX pairs, so you can trade bitcoin against the US dollar. You can also trade bitcoin CFD products, which have the advantage of being more flexible. They also enjoy lower spread costs, so you can execute more trades.
To get started with trading bitcoin in the forex market, look for a forex broker that offers cryptocurrencies. Top options include easyMarkets, IG, and Pepperstone. Discover the newest UK online casinos as you explore your trading options. It is wise to open a demo account before you risk your trading capital. Play around with a demo account for a few months, get used to the trading tools at your disposal, and work out a trading strategy. Once you are making a consistent profit, you are ready for a live account.
Trading Bitcoin Securities
The final option is to trade bitcoin securities, for example, ETFs. If this appeals to you, look for a broker that offers bitcoin futures trading or bitcoin-related securities. There are relatively few options out there, but some brokers have products that give you exposure to bitcoin without having to buy the underlying asset or trading in a derivative.
Bitcoin trading is exciting, but make sure you understand the intricacies of how bitcoin and blockchain work before you jump in.