Latest News Editor's Choice

Business / Your Money

Learn how to Trade Bitcoin: A Forex Guide

by Staff writer
22 Apr 2020 at 14:57hrs | Views
Find out how to make additional money by trading bitcoin on Forex. Use the tips in this article to become a successful trader.

Bitcoin on Forex: Trading Basics

The age of modern technology dictates its own rules. If until recently, participation in stocks trading was the prerogative of a narrow circle of people, now any person can buy and sell almost any currency. Such words as cryptocurrencies and mining are becoming familiar to more and more people. It turns out that you can safely trade bitcoins. The technical chart of the BTC/USD pair is absolutely no different from the charts of other currency pairs on Forex. It does not matter where you're from: South Africa, Nigeria, Zimbabwe or USA. After reading this, you will know how to trade bitcoin and potentially make money on it.

Bitcoins on Forex

As we have already established, any player can trade bitcoins based on its exchange rate to the dollar. This is a classic approach to Forex trading – making a profit on the fluctuations in the price of an asset. However, you need to make sure that your broker has such a service available. The majority of respectable brokerage companies, one of which is ForexTime, allow their players to trade bitcoin.

What Affects Bitcoin's Value?

When it comes to Forex currency pairs, the bitcoin/dollar pair stands apart. This cryptocurrency practically does not show any reaction to the publication of US economic indicators. Bitcoin is not the currency of any state and does not play any role in the country's economy or finance sector. Another thing is the news. It is very important to follow the news of the cryptocurrency world. If there is information about major investments in bitcoin by big companies, you can be sure of the BTC/USD pair growth. In this perspective, you need to follow all the news about the cryptocurrency market to make the right trading decisions.

Is Technical Analysis Useful for Bitcoin Trading?

Here is some good news: the classic technical analysis rules work for bitcoin as well. The chart of the BTC/USD currency pair is no different from the others. In the same way, the pair forms trends, and you can use technical analysis to determine your strategy on Forex.

Which Trading Sessions Should I Choose?

Bitcoin is a cryptocurrency that does not have a single emission center. Generally speaking, there is no Central Bank that prints cryptocurrency and regulates its course. In addition, Bitcoin is not tied to the economy of any country. Therefore, the activity of traders does not depend on the trading session - sharp movements of the pair are possible at any time of the day.

Is There a Bitcoin Trading Strategy?

It may sound surprising, but trading bitcoins is easier than regular currencies. The speculative factor in the Bitcoin exchange rate is too insignificant, which excludes fraudulent movements on Forex. That is why there are no special strategies for bitcoin – they are simply not needed. Simple trending strategies are the most popular. You can also successfully use channel breakout as a trading approach without neglecting the rules of money management that also work for cryptocurrencies.

To conclude, trading Bitcoins is more than possible on Forex. Do your research and analyze the market of cryptocurrencies to become a successful trader.
Source - Byo24News
More on: #Bitcoin, #Trade, #Forex