How To Trade Bitcoin Effectively

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How To Trade Bitcoin Effectively

Bitcoin (BTCUSD) has just made new all time highs, this is a headline that has been written many times just not for a while. However, Bitcoin is back at it again, at the time of writing, BTCUSD is trading above $65,000 for the first time ever.To get more news about trader245, you can visit wikifx.com official website.

Bitcoin is the most popular and well known crypto currency, however, even if you have been living under a rock for the past couple of years, you will most likely have heard of the term ‘cryptocurrency’ before. But what are they? And how can you take advantage of these assets?

A cryptocurrency or crypto can be defined as binary data designed to work as a medium of exchange wherein individual coin ownership records are stored in a ledger existing in the form of a computerised database using strong cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership.

Crypto is fast becoming one of the most popular avenues for investors, be that professional or retail. Crypto is really a love-hate topic. You are either one or the other; Bitcoin is the future and will be worth $100,000 by the end of the year, or it’s a bubble and its actual value is zero.
Either way, no-one can deny the amount of wealth that has been created throughout the trading of cryptocurrencies around the world. The current market cap of Bitcoin is over $1.2 Trillion USD, roughly a third of the FTSE100 Market cap, which has been around since 1984, and 10% of the Dow Jones index created in 1882. Bitcoin was created in 2009. The total market cap for Crypto is over $2.5 Trillion dollars, so it is definitely here to stay for now at least.

The ability to trade cryptocurrency in the UK has become more challenging over the past few months. Some brokerages are no longer offering the instruments to retail traders, and others have increased the spreads or increased the margin costs making it more expensive for traders to capitalise on the volatility.This past week we have witnessed Bitcoin reach all time highs of $65,000 following the news that Bitcoin ETFs are now available with the first bitcoin futures ETF making its debut and gained 4.8%.

One of the ways in which traders can take advantage of the moves is by trading through CFDs as opposed to physically owning and storing the given cryptocurrency in a wallet. The advantage of trading Crypto through CFDs over physical holds is that you can short sell the falling market and / or buy the dips very quickly and easily via desktop and mobile platforms, due to the fast execution times when placing a position.There is also the security factor in that you do not own any tokens that could be stolen or be hacked. Another benefit is the additional leverage offered when trading CFDs, allowing traders to use less capital to get direct access to the market.

However, if you are trading a smaller amount, be very cautious of the amount you are risking per position as the high volatility can catch traders out. The other factor to consider is your margin level on the account so that you are not taken out of your position with a margin call.We have found a broker offering Bitcoin and other cryptos at a highly competitive level. YLDFX is a brokerage regulated in Labuan. They have recently started offering cryptocurrencies CFDs via their Metatrader 5 platform. Finally, giving traders a fair and equal opportunity to trade the cryptocurrencies such as Bitcoin, Ripple, Ethereum and Litecoin.

They offer clients up to 100:1 leverage across the range of Cryptocurrency instruments with highly competitive spreads and much lower fees than trading a crypto currency directly through an exchange. Even for the die-hard crypto enthusiasts, this can be advantageous as they can hedge risk during market sell offs.