Bitcoin trading has exploded in popularity during 2017. Back in January, each Bitcoin was worth roughly $1,000 USD and in November, with 2018 just around the corner, Bitcoins are being traded, on average, at a touch over $8,000 USD a piece. 800% gains inside of a year are pretty much unheard of in any other market but, in the exciting world of cryptocurrencies, not only is this common, 800% is a decidedly modest increase in value compared to some of the up-and-coming altcoins you’ve probably never heard of.
Bitcoin is no spring chicken either; it was launched in 2009 by a developer, or group of developers, under the pseudonym ‘Satoshi Nakamoto’. The identity of Satoshi Nakamoto and his or her band of merry, revolutionary cypherpunks remains shrouded in mystery to this day.
It is for this reason, along with the seemingly never-ending hype surrounding the world’s moIntest popular digital currency – Max Keiser, host of Russia Today’s ‘Keiser Report’, recently said that he believes that the value of Bitcoin will one day reach $100,000 USD a coin – that more and more investors who’ve perhaps historically stuck to more traditional markets, often regarding the undoubtedly volatile cryptocurrency market with a healthy level of scepticism, are now beginning to take note and seriously consider trading Bitcoin. This isn’t to say that there haven’t been hiccups along the way; some will no doubt recall the Mt. Gox hack of 2014 wherein the world’s most popular Bitcoin trading platform (at the time) was infiltrated and millions of traders lost their coins. However, if you look at the general trajectory of Bitcoin, it’s undoubtedly positive. Trade Bitcoin and it might just turn out to be the best financial decision you ever made.
Is Bitcoin a Bubble?
The argument that the cryptocurrency market – particularly Bitcoin itself which, nowadays, is practically a household name – is merely an overhyped bubble waiting to burst, akin to the Dotcom Boom of the late nineties/early two-thousands, becomes harder to make with each passing month (week, even)! The train shows no signs of letting up and, as such, now might well be a good time to jump aboard, so to speak, and begin to trade Bitcoin. One popular cryptocurrency news outlet recently posted a meme on Facebook which said something along the lines of: ‘When was the best time to buy Bitcoin? 2013. When’s the second-best time to buy Bitcoin? Right now.’ Strong words but hard to argue given Bitcoin’s unrelenting bullishness, of late. Perhaps it’s time to stop kicking yourself because you didn’t get in way back when and start making steps to avoid further regret! Although, as always, make yourself aware of the risks and never leverage more than you can afford to lose. In short, trade Bitcoin at your own risk.
How Can I Trade Bitcoin?
It must be said, however, that for many, the thought of purchasing and trading Bitcoin via exchange sites and storing them in web-based or hardware-based ‘bitcoin wallets’ is daunting, to say the least.
It’s easy to feel overwhelmed by such an alien concept – digital money that you can’t touch or feel or smell which exists only as an entry/transaction on a ‘distributed database’, known as a ‘blockchain’, which can be worth hundreds, thousands, or even millions/billions of dollars. It’s a tough one to get your head around, for sure.
It is for this very reason that many smart brokerage firms have begun offering CFD (Contract for Difference) and derivative options on cryptocurrencies to allow uses to trade Bitcoin on their respective Bitcoin trading platforms. This way, old school traders can adopt Bitcoins and various other cryptocurrencies as the ‘underlying’ without having to outright own and manage any Bitcoins, Ether (the currency of Ethereum) or XRPs.
This guide will help you get to grips with the ins and outs of Bitcoin trading with an eye to giving you the skills and knowledge you need to get in on the action, so to speak.
Best Bitcoin Trading Platforms
There are many brokerage firm websites which are now offering Bitcoin options trading to allow users to indulge in trading Bitcoin by offering Bitcoin lending services to cater for Bitcoin day trading and the like. Bitcoin trading is the latest trend in online derivative trading and, as such, new would-be Bitcoin traders, must choose from a huge selection of sites if they want to indulge in trading Bitcoin.
The following rundown will provide you with a bit of information on five of what we consider the best and most reliable brokerage firms which offer Bitcoin trading options. Some are better suited to new traders who may never have even considered trading Bitcoin until now, while others offer slightly better options, so take the time to read each review carefully to allow you to make an informed decision on which Bitcoin trading platform best suits your needs.
AvaTrade says: “AvaTrade has been an innovative pioneer in online trading since 2006. The company was created as a combined effort of financial professionals and experts in web-commerce with the goal of perfecting the online experience for retail traders. Within a few short years, AvaTrade has expanded enormously, with over twenty thousand registered customers globally executing more than two million trades a month. The company’s total trading volumes surpass $60 billion per month.”
We say: AvaTrade is one of the more well-established brokerage firms so you can rely on them for security and support. They have a web chat service which is useful for new users. AvaTrade’s support desk is multilingual, and is available 24 hours a day so you’ll never be without a helping hand. It boasts an attractive and clean-looking interface which is ideal for beginners and more experienced traders alike. Its headquarters are in Dublin, Ireland, and it was founded way back in 2006, so they must be doing something right.
Plus500 says: “Plus500 is a leading provider of Contracts for Difference (CFDs), delivering trading facilities on shares, forex, commodities, ETFs, options and indices, alongside innovative trading technology. With the Plus500 trading platform, you can trade the world’s most popular financial instruments with leverage and enjoy a free unlimited demo account.”
We say: Plus500 is a secure and reliable Bitcoin trading platform which is, without a doubt, one of the most popular names in the industry. It’s easy-to-use interface and wide variety of competitive spreads makes it the perfect place to begin Bitcoin trading, whether it’s long-term trading you fancy or a bit of Bitcoin day trading.
24 Option says: “24option the world’s leading binary options trading platform. Trade Stocks, Indices, Forex and Commodities. Get the highest limits & returns! 24option is a fully regulated online binary options brokerage owned by Rodeler Ltd. Traders can choose from a wide range of global assets, including stocks, indices, commodities and currencies. The sophisticated easy to use trading platform delivers real time financial data, and allows multiple simultaneous investments using four fundamental instruments.”
We say: 24Option is among the top online brokerage firms in terms of features, usability, and rates offered. Indeed, the company offers loads of the most up-to-date technology on its attractive and easy-to-navigate trading platform; the company has obviously worked incredibly hard to ensure that the service is accessible to the less experienced trader.
How to trade Bitcoin – The Step-by-Step Guide
Let’s dive in! For this guide, we’re are going to use eToro’s Bitcoin trading platform to illustrate just how easy it is to begin Bitcoin trading, Bitcoin lending, and Bitcoin day trading. We will change it up for other coins to give you an insight into the subtle differences between the various Bitcoin trading platforms to allow you to make an informed decision on where you want to trade Bitcoin. eToro offers a wide range of Bitcoin lending options and is widely regarded as one of the best Bitcoin trading platforms around. So, let’s get started, shall we?
First, visit the homepage (below) to begin setting up your own personal Bitcoin trading account with eToro:
Now, click the green ‘DISCOVER CRYPTO COPYFUND’ button and you’ll arrive at the below screen:
Here, you’ll find a brief explanation of why traders and investors are becoming increasingly aware of cryptocurrencies, along with a donut chart showing eToro’s asset allocation.
To begin setting up your account, click on the blue ‘Sign Up’ button in the bottom left corner of the screen. This will take you to the below popup screen:
As you can see, you are given the option of either signing up using your name and email address or creating an account using your Facebook or Google Plus accounts; for the purposes of this guide, we are going to sign up the old-fashioned way, so to speak.
So, fill in all the dialogue boxes, click the box to accept the terms and conditions, and click on the ‘Create Account’ button to get started. Once you’ve done all that, you’ll arrive at the below screen:
Or, alternatively, check your inbox and you’ll see the below email:
Click on ‘Start Trading’ and you’ll arrive here:
As you can see, Bitcoin is listed on the landing page; from here you can either ‘Complete your Profile’ by clicking on the blue button in the upper left-hand corner of the screen (this involves providing additional personal information to strengthen your account and increase functionality), or ‘Deposit funds’.
Click on the ‘Deposit Funds’ button in the bottom left corner of the screen to arrive at this screen:
As you can see, you have the option to fund your account immediately via debit/credit card; here’s a list of the supported payment enablers:
Now, let’s return to the below screen so we can have a look at how to trade Bitcoin on the eToro interface:
Simply click on BTC (the orange box on the far right of the screen), and you’ll be given a list of trading options and from there you can examine the spread/options available and decide how you’d like to proceed. Simple, right?
Now that you’re familiar with the basics of Bitcoin trading, you’re free to trade Bitcoin for yourself and familiarise yourself with the ins and outs of Bitcoin options trading. Remember, proceed with caution; it may even be a good idea to practice on the demo accounts, offered by all reputable Bitcoin trading platforms, to get a feel for Bitcoin options trading before you invest real money.
Thanks for reading and happy trading!