Online Trading Goes Digital Currencies with Bitcoin
Bitcoin trading has come into its own in recent years. As the world’s preeminent digital currency, Bitcoin or BTC is internationally accepted by merchants, traders and customers alike. As a cryptocurrency, Bitcoin is in a unique class. The actions of central banks or governments do not determine the demand or supply of BTC; it is governed by a complex algorithm that caps its production at 21 million coins.
BTC can be traded alongside fiat currencies (traditional currencies) online, and it is rapidly gaining in popularity in the virtual trading arena. Traders across Europe, the United Kingdom, and elsewhere are showing increasing interest in Bitcoin trading for many different reasons. It is especially popular with CFD trading (contracts for difference), and a wide range of reputable trading platforms and brokers now offer BTC as one of their assets. It fits into the currency category, alongside other Forex pairs such as the USD/CAD, GBP/EUR, USD/JPY, USD/ZAR etc.
Why is Online Bitcoin Trading So Popular?
Reputable trading sites offer competitive leverage with BTC trading in a CFD format. It is common for traders to enjoy 20:1 leverage ratios, with trades starting from as little as €100/$100/£100. It behooves traders to select fully regulated, licensed, and reputable trading brokerages with Bitcoin trading, since these guarantee safety, security, and recourse in the event of errors. As one of the more recent additions to the range of tradable assets, Bitcoin is truly unique.
It was created by Satoshi Nakamoto back in 2009 and was intended to be used as a peer-to-peer money transfer system. It is 100% safe and secure to transfer BTC from one person to another, for investment purposes, merchandise, trading etc. All traders have the benefit of complete anonymity when purchasing BTC. Recall that it is not governed by the actions of central banks. This means that no monetary authorities can increase or decrease its supply. Since there are no transactions fees levied on BTC transfers, it is easy to make payment or receive payment with this option.
Bitcoin Valuations Rise Relative to Fiat Currencies
As far as online trading of BTC goes, clients at all regulated brokerages can use their Bitcoin wallets to transfer BTC into their trading accounts. This can be used to purchase fiat currency, commodities, indices, equities and other currency pairs. These digital currency units are mined with powerful computers and complex software. It takes time to do this, and this is precisely the reason why Bitcoin is so rare. Production will be capped at 21 million coins, after which time there will be no additional production. This finite commodity is not dissimilar to other commodities like silver, copper, gold, platinum, and the like.
As its rarity increases and demand increases, so the price of BTC skyrockets. Consider that in 2009, it was possible to purchase 1,309 Bitcoin with $1. Fast-forward 9 years 1 Bitcoin is worth $2,783.97. This dramatic reversal is testament to the value that people place in this digital currency. The global economy is fast moving towards a cashless society, and BTC is at the forefront of this revolution. Traders are wasting no time and cashing in on its popularity by trading it against the multiple currencies and commodities. For example, XGB/BTC, MOON/BTC, BTC/INR, BTC/CBY, BTC/EUR, CBX/BTC and DOGETH/BTC are common cryptocurrency pairs.
How to Trade Bitcoin Against Other Currencies?
Bitcoin can be traded in much the same way as other currencies. The main determinants of BTC trading include the economic calendar of events that will affect fiat currencies like the USD, EUR, JPY and ZAR. For example, central bank decisions, GDP forecasts, NFP data, inflation figures, Consumer Price Index (CPI) data, consumer confidence reports, producer price inflation figures and others need to be considered. Regulatory changes by governments can also impact the value of Bitcoin, by increasing or decreasing demand respectively.
Overall, there is significant interest in trading Bitcoin and a multitude of credible trading platforms now make this possible for everyone.