Considering the volatility of the bitcoin token’s value made a lot of traders and investors excited, especially those who are considered day traders. But considering that digital money has been around for a few years, even the expert investors find it hard to start trading and investing in Bitcoin.
Is Bitcoin Trading the Same as Foreign Currency Exchange?
As we mentioned earlier, Bitcoin is a type of digital money that circulates in the cryptocurrency world. In connection to that, a lot of investors think that bitcoin trading is the same as Forex (Foreign Currency Exchange) available in the market.
Foreign Currency Exchange refers to the world’s largest market. It gathers a trading volume that is ranging about 6.6 trillion US Dollars per day. This is according to the triennial survey conducted by the BIS (Bank for International Settlements performed in 2019.
To compare the two, global stock trading has an approximated value of a few hundred billion US Dollars daily. On the other hand, the volume gathered by bitcoin trading is not less than 100 billion US Dollars a day. Way back in 2018, the daily trading volume of bitcoin rose to about 1 trillion US Dollars within two trading days. Start earning with bitcoin trading through BitIQ official site
Bitcoin Trading is More Straightforward than Foreign Currency Exchange
Even though the trading pairs happening in bitcoin exchanges are quite the same as forex traders, bitcoin trading still has a lot of differences with Forex in different ways. In most cases, most of those ways are related to the history of Bitcoin, which was happened way back in 2008, which is quite earlier compared to the forex-traded currencies.
On the other hand, compared to foreign currency exchange, trading bitcoin is far more straightforward and simpler. Another notable difference between bitcoin trading and Forex is that the former is treated as property by the IRS, not currency. The two types of trading are also different when it comes to tax purposes.
Bitcoin Trading is Just Like Buying Assets
These days, it would be best to define bitcoin trading in a simpler manner, just like purchasing a new asset. Trading bitcoin can be done easily. All you need is to keep an eye on the rise and fall of its value and decide whether or not to sell or hold it in the future. If you know and understand the basics of forex trading, you may notice that bitcoin trading is more likely to spot trading.
Aside from the mentioned differences, professionals, such as Investopedia, advise individuals to start bitcoin trading using a regulated cryptocurrency exchange, which includes Gemini Trust. Experts also recommend opting for trading bitcoin instead of the traditional forex exchange. This is because crypto exchanges know the importance of security and the market way better than forex markets do. To become one of the top bitcoin traders, here are the tips for you.
Start Trading with Bitcoin
There are four steps you need to follow if you are planning to start bitcoin trading. These are the following:
1. Start at a Licensed Exchange
The first step to follow to start bitcoin trading is to create your crypto exchange account. Make sure to work with a crypto exchange company that is licensed and reliable, such as Gemini Trust.
2. Choose Your Trading Currency
After creating your crypto exchange account, it is time to pick the type of digital money you want to trade that can be bought using your fiat currency, such as US Dollars or Euros.
3. Start the Trading Process
After completing the two steps mentioned above, you can now start trading your bitcoin. You will be provided with the bitcoin fee you want to purchase as well as your remaining money. After that, place your order, and you have successfully traded your desired crypto.
4. Start Crypto Trading without Dollars
After purchasing your initial cryptocurrency, you can now start trading without dollars in currency pairs. This, however, still depends on the traders’ preference.
Those are the four easy steps to start investing and trading with Bitcoin and other forms of digital money.