The forex market has the most liquidity and runs 24×7 all across the world. due to it is effective in nature and many forex traders are now accepting bitcoins on Online Cryptocurrency Exchanges and other exchanges for forex trading. with we will see why trading forex with bitcoin makes perfect sense.
Forex Dealings Using Bitcoin
For dealing in forex with bitcoins need to open a forex trading account with a broker who accepts bitcoin. once done you can then proceed to deposit your bitcoins for trade.
For example, if you deposit 2 bitcoins in your forex trading wallet and take a position in pounds the bitcoin would first get converted to us dollars and then exchanged to pounds. if one bitcoin is worth $500 that means you get a thousand dollars. again assuming the exchange rate to be 0.5-1 you will get 500. assuming that the exchange rate has changed to 0.45 after some time you then make a profit of 11.11% on squaring off your position. in the same case if the rate has changed to 1 bitcoin=$560 you may receive 1.984 bitcoins.
With this you earned a neat earning of 11.11%. however the dispersal of bitcoin to rate meant that you had to bear a loss of 0.016 bitcoin 2 bitcoins- 1.984 bitcoins=0.016 bitcoins if the bitcoin to rate had changed to 1 bitcoin= $475 you could have got a profit from both the forex transaction as well as the bitcoin exchange. this could be 2.339 bitcoins $1 111.11-$475 getting a neat earning of 16.75%.
Advantages Of Dealings Forex With Bitcoin
Great Leverage- forex brokers offer advantage for bitcoin deals sometimes as high as 1:1000.this can be extremely helpful for experienced traders as the hope of profits increases manifold.
Decentralized Valuations- with cryptocurrencies like bitcoin there a central bank that randomly changes the bitcoin valuations. due to the value of bitcoin is free from macroeconomic issues like inflation interest rates or geopolitical influence.
No Transaction Costs- bitcoin transactions are recorded on public networks none of the transactions have any involvements with clearing agencies or banks. this ensures that there are no transaction costs for bitcoin even for international transactions. agents who content with such trades pass on the benefits to their clients by not charging any withdrawal or deposit fee for transactions involving bitcoin. this really helps trade profits.
Low Deposit Amount- for newbie investors this is good news you can start trading with bitcoin for as low as $25 with quite a few bitcoin forex trading firms. some firms even give you a matching deposit amount as a promotional offer. traders must ensure that the agents are going by the rules and are well regulated.
Low Cost Of Dealing- To encourage bitcoin investors to go into forex trading brokers are keeping costs low to attract bitcoin-trading clients.
Security- you reveal your bank account or your credit card details to deposit or withdraw money with bitcoin transactions. this level of security is the best option if you got to trade with foreign brokers.