1. BTC can be traded in a CFD format. A CFD is a derivatives trading instrument, known as a contract for difference. This is an entirely different way to trade BTC, since you do not take ‘ownership’ of the digital currency. With Bitcoin CFDs, you are speculating on the price movement of the underlying asset, for example the BTC/USD pair. If you believe the digital currency will appreciate relative to the dollar, you would take a long position on it, and if you believe the digital currency will depreciate relative to the dollar, you’ll take a short position of it. This means that you can trade the asset and profit accordingly – regardless of the price movement.
2. You can get started with as little as 10% of the contract value when you trade BTC. Conventional investments in Bitcoin require you to front all the money for this financial option. However, in a CFD format you are only required to put up 10% of the value of the trade. That’s because 10% represents the margin requirement. You can leverage your BTC trades by 10 to 1. A $100 BTC investment is the equivalent of a $1,000 BTC investment in CFDs. When that figure is $1,000, you can control $10,000 worth of BTC trading. As you might expect, leverage can magnify your profits, and it can increase your losses too.
3. It is always important to go with a respected BTC trading broker. According to Stavros Lambouris, CEO International for HYCM, ‘Bitcoin has proven to be the type of asset that traders flock to during times of geopolitical uncertainty. Just recently, we’ve seen BTC break through $4,000 with heavy trading in Asia (Japan, South Korea) as concerns over North Korea mount. This asset is behaving similarly to gold…. HYCM offers options on BTC trading with multiple currencies. A full range of technical services and resource materials is available, including an innovative mobile trading platform, free to download software, anytime, anyplace trading, live BTC charts, updates and news. Further, traders on all Android and iOS compatible devices can easily download the mobile trading apps from the App Store or the Google Play Store.
4. BTC is inherently volatile. This means the price can rise or fall dramatically at any given time. As an investor, this hardly seems like a wise idea. Trading, as opposed to investing, is a more decisive way to profit from BTC price movements. For example, if regulators in the Philippines and South Korea have approved BTC trading – this bodes well for the BTC/USD currency pair. A long position would be warranted in such a situation. Likewise, any negative movements with BTC in the news would turn markets bearish and put options would be warranted.