Bitcoin is a digital asset and a payment system invented by Satoshi Nakamoto. Transactions are verified by network nodes through cryptography and recorded in a public dispersed ledger called a blockchain. Bitcoin is unique in that there are a finite number of them: 21 million.
Most currencies and commodities and stocks and bonds can be traded using derivatives: futures, options, and swaps. Bitcoin cannot currently be bought on the open market in the same way as most other things. To trade Bitcoin is to trade Bitcoin directly. This requires a reputable Bitcoin Trading service provider who has experience dealing with the specific challenges of managing funds safely in Bitcoin, who can take your investment orders and execute them for you. If you want to invest in bitcoin then Quantum AI can provide you with all the necessary information in this regard.
Risks involved in Bitcoin Trading
The risks of trading Bitcoin directly are high: theft, cyber theft, hacking exchanges, online wallets, etc., all pose risks to those wanting to invest in an altcoin. It is much better to trade a bitcoin CFD via the companies listed here. A CFD (Contract for Difference) is a contract between the investor and the CFD provider, which is an intermediary like a stockbroker.
CFDs are similar to futures contracts in that they allow you to make leveraged bets on your opinion of whether share or commodity prices will rise or fall. The main difference with trading Bitcoin on leverage is that you aren’t actually buying Bitcoin. You are trading a CFD, which is based on the price of Bitcoin. The main benefit of trading Bitcoin via CFDs is that you don’t need to open an account with any specific Bitcoin service provider, and won’t need to know how to handle funds securely in your own name.
How to trade Bitcoin with a Swiss Binary Options Broker
The most important difference between trading Bitcoin with a CFD and buying it outright is in the leverage offered. The leverage you have when trading a CFD means that your potential loss is limited to the initial margin. In other words, if you own 1 BTC which is currently worth $9,500, but trade via a 2:1 CFD on margin, you will have double the potential profit or loss.
This is because if your 1 BTC goes to $15,000 then your gain of $5,500 on an initial investment of $9,500 means that you’ve made 50% on your money in just under three months. But if it drops to $6,000 then you’ve lost 100% of your initial investment. You receive the same payout any time your trade is “in the money” whether it’s via a CFD (Contract for Difference) or by holding an asset directly. Traders love this because they can make money no matter what happens in the market.
Bitcoin CFDs
Bitcoin CFDs are also free of stamp duty, capital gains tax, and other taxes applicable when trading Bitcoin directly. This makes them much more tax-efficient for traders who are looking to make profits across multiple financial instruments. Leverage can go up to 100:1 on many of the markets offered by the brokers here, meaning an investment of just $500 can control $50,000 worth of Bitcoin.
Bitcoin and the Blockchain technology behind it is far more than a currency: it is a paradigm shift that will change how we deal with money and assets forever. There are many questions surrounding its legal status as an asset class in most countries, but those who want to make an informed decision about its potential to become a new asset class should seriously consider trading Bitcoin via CFDs rather than buying it outright.
Invest in Bitcoin
Now that you know a bit more about trading Bitcoin, it’s time to start investing. Don’t worry if you don’t have any experience – our recommended brokers will walk you through the process every step of the way.
The first thing you need to do is open an account with one of our recommended brokers. You can do this easily by clicking on one of the links in this article. Once you’ve registered, you’ll need to deposit some funds so you can start trading.
To trade Bitcoin, you’ll need to buy a CFD (Contract for Difference) based on the price of Bitcoin. You can do this easily on the broker’s platform. Simply enter the amount of money you want to invest and hit.”
