More people than ever have been using bitcoin in the last ten years. People use it in the place of conventional money to buy and sell goods and services. Its price changes quickly and very often but this has rather become an attraction to individuals looking to make large profits. People who are investing in bitcoin hope that it will soon become a major currency in the world.
There is an ingenious technology behind bitcoin but that is not its main attraction to forex traders. What attracts traders is how they can profit from the fluctuations in its price. Whether the price goes up or down, traders hope to make a profit. You can trade bitcoin as a trader either at a cryptocurrency exchange or through an online forex broker from https://topbrokers.com/ . If you trade at cryptocurrency exchange, you will be required to buy and sell real bitcoins. But if it is through a forex broker, you will trade a bitcoin contract for difference.
Benefits of trading Bitcoin with a forex broker
Availability of Regulation
Forex brokers who are well known in the industry are thoroughly regulated and have to be professional in their operation. They usually put your money in separate bank accounts where it is safe. Cryptocurrency exchanges, however, are not regulated in any way at all. In the case of a cryptocurrency exchange shutting down, you will not have much protection.
The simplicity of Setting up
The process of setting up a cryptocurrency account and beginning to trade is quite complicated. You have to; first of all, find an exchange that accepts people from the country where you live. Then you need to find a way of paying money into that account which can be very difficult. That is why some traders open another bank account just to be able to make deposits into their cryptocurrency exchange account.
However, this is not so with trading bitcoin through an online forex broker. The entire account can be set up in a few minutes and make deposits into that account using whatever currency you prefer. Once you make bitcoin sales, they will be automatically credited to you in your preferred currency.
Undeclared fees and charges
If you use an online forex broker, you open your account free, make deposits and withdrawals free and you do not pay commissions. You only make expenses in form of the spread. So you can easily manage your money and keep a record of the expenses you make.
But if you use a cryptocurrency exchange, you will pay fees at each turn. To make deposits into your account, you will pay a fee. You still pay a fee when withdrawing, when exchanging currencies, when buying bitcoin and when moving bitcoin and commissions on trade. These fees are complex and make it difficult for the trader to keep proper touch with his funds.
Useful tools and platforms
Another benefit of trading bitcoin through an online forex broker is that you get access to professional tools and platforms. These platforms will enable you to use several kinds of indicators and analysis tools.
On cryptocurrency exchanges, the tools available are of lower quality and limit traders to only using the tools to place trades. This makes it necessary for the traders to use other platforms for charting and analysis.
The spectrum of trading opportunities available
Another disadvantage of trading through a cryptocurrency exchange is that some exchanges have certain requirements and may not allow shorting or provide leverage or margin.
However, if you trade bitcoin with a forex broker, you will have access to leverage and margin so that you can trade to whatever extent you want. Using a forex broker will also enable you to keep all your money in the same place if you are already a forex trader. This way, you can monitor both trades at the same time.