Although many cryptocurrencies are flowing in the market, Bitcoin is the hot favorite of all those who use digital currency. Also, with its rising value, it is becoming highly popular and attractive, and many people earn it using hard mining.
Seeing this, the forex brokers are considering the cryptocurrency seriously and giving an option to the traders to trade in bitcoins. This way of trading involves an additional transaction, but if done properly, it can lead to significant profits.
Here are the benefits of trading currency in bitcoins:
- Security – After the deadly malware wannacry, financial security is the top priority of all those who use the internet for money transaction. Trading in Bitcoins is secure as you do not have to reveal your bank account or credit card details to the broker.
- Zero Transaction Cost – As you are not attaching your bank account or credit card detail, there will be no transaction cost, even for global transfer. This is because the transactions that involve cryptocurrency are recorded on the public network without any involvement of banks or any other agency. Apart from this, the brokers promote the transactions by offering zero transaction fees on the deposits and withdrawals.
- Low Trading Cost – Not only by offering zero percent fee on the withdrawals and deposits but brokers also try to keep the trading cost as little as possible to attract new bitcoin traders. Brokers compete by keeping the price low, so opt for the one with the lowest trading cost. However, you should also keep in mind the reputation of the broker.
- No Global Borders – The elimination of the involvement of any agency or bank in the transaction gives the freedom of trading using any agent in the world. So if you are sitting in the United Kingdom, you can easily trade with a broker sitting in Africa!
However, there are some regulatory measures that vary from broker to broker.
- Low Startup Cost – This is what forex famous for and brokers have made it further accessible by offering a startup with as little as $25. From time to time they keep on releasing promotional offers to lure new traders.
- Decentralized Bitcoin Valuation – The value of bitcoin is independent of any microeconomic issue such as interest rate or inflation. No central authority can change the value of bitcoin.
- High Leverage – This is a significant advantage for experienced traders as the brokers offer leverage up to 1:1000 for bitcoins. However, these high margins can even lead to greater losses. So, play cautiously.
Bitcoins is becoming a very powerful, attractive and a popular currency. But lucrative things have some disadvantages. So along with numerous benefits, there are some risks involved when trading currency in bitcoins.