What Do Bitcoin Forex Brokers Do?
These days, there are limitless investment options available both online and offline. You can put your money in real estate, cryptocurrency or other investment opportunities. One of the most recent trends involve trading in financial technology or Fintech with currencies that are digital in origin known as cryptocurrency.
Bitcoin is clearing the path to new opportunities in the foreign exchange or Forex market with digital currencies. While Bitcoin is considered to be a new player in the finance industry, it’s still the forerunner in the financial technology sector and it’s considered the primary currency in trading other cryptocurrencies. If you’re interested in portfolio expansion then Bitcoin would be a good addition.
However, there are certain factors that may hinder your path to starting your own investment such as the lack of knowledge about an industry, obscurity of where to begin and absence of reliable information. All of the aforementioned considerations can be solved by either joining a reliable course or getting a regulated broker. Check this forex broker comparison to see which platform is great for Bitcoin trade.
Bitcoin Forex Brokers
One of the most important aspects that a person needs to take into consideration when starting a trading career in Bitcoin and Forex is selecting a reliable broker. A broker is someone who trades assets like Bitcoin and foreign exchange currencies in your behalf. Brokers also do the following:
- Provide Forex traders access to a trading platform that enables them to buy and sell various kinds of foreign currency
- Help carry out various order types that can ensure your success as a trader
- Practice flexibility in currency purchases as many brokers accept cash, credit, and other forms of remittance
There is a steadily growing market where traders may also use Bitcoin as a means of means of transferring funds. In some companies, they even allow Forex traders to partake in the Bitcoin market where they can purchase and trade these crypto coins. For people who are looking for expand their assets, dealing Bitcoin through a Forex broker may just work for you.
To avoid confronting these costly expenses, traders who still want to engage in the market can do so by working with Forex platforms that more or less provide BTC trading options as well.
Here are some things to expect from Bitcoin Forex brokers:
1. Bitcoin Forex Brokers help avoid the mining process
Bitcoin is considered one of the safest and most reliable assets in the crypto world. With the rise of various altcoins that more or less share similar features, Bitcoin continues to dominate the charts and is expected to do so in years to come. While Bitcoin is safe, mining BTC is pretty costly which requires specialized tools and a connection capacity that several traders simply do not have the money for.
As of 2018, the general cost of mining a single Bitcoin in the United States is equivalent to 4,758 USD so while it’s extremely useful to have Bitcoins in cryptocurrency trade, it’s too expensive for normal traders. For some experts, many believe that investing in Bitcoin is a great place to start for traders who are thinking of including cryptocurrency in their portfolio.
2. Bitcoin Forex brokers are relatively easy to deal with compared to other platforms
As of 2019, there are three ways a person can start trading Bitcoin:
- They can purchase it from an exchange or a cryptocurrency broker.
- They can trade a CFD or Contract for Differences to hold cash margin with a Forex broker
- They can buy it as a publicly listed security
All of which can be done on a multi asset platform that deals with Forex, stocks, initial public offerings or IPOs, contract for difference or CFDs, crypto currencies and more. When it comes to starting a crypto coin trading venture, many of these platforms offer wallet-generating features which you can also use to fund your Forex account.
Additionally, these platforms also give users access to charts and other analytical tools which can help you determine when the price of Bitcoin is going up or down. This provides you an advantage over other traders since many of these tools are made with state-of-the-art technology.
3. Bitcoin Forex Brokers are generally safer to deal with
Compared to other means, trading Bitcoin via Forex brokers is often deemed as safer because many of the added security that comes with Forex. While Bitcoin is safe, many crypto coins often fall under false pretenses due to its decentralized nature. This can result to a number of scams and unsafe investment opportunities for traders who want to start digital coin trading.
Most Forex brokers on the other hand are required to undergo a strict set of regulations and licensing procedures to determine their legitimacy to the public. These set of rules all serve to protect investors from falling prey into various scams by providing transparent transactions. In short, it’s safer to purchase BTC from Forex brokers than random investors because the former is strictly regulated by these security rules at all times.
4. Bitcoin Forex Brokers are regulated and can be traced
If you are a beginner who is interested in starting both a Forex and Bitcoin trading career, it helps to research on various brokers that offer these assets. Since you’re going to be putting money into the account, you have to make sure that you’re checking the features and advantages of the platform. Some of the features to look for include:
- Proof of regulation
- Charges and Fees that come with trading
- References and other educational materials to help you start your career with ease
- Clean track record
While research can be time-consuming, investing in a reliable broker is definitely a step worth the task.
With all these factors in mind, it’s easy to understand why many Forex traders often start their Bitcoin trading career on their own trading platform. Considering that there are now countless of trading brokers to choose from, it’s no question that competition is fierce when it comes to satisfying a specific market’s need. This specific need is to expand one’s portfolio by trading Bitcoin.