Despite what some people are saying about cryptocurrency and the numerous scams that happened over the past two years, Bitcoin still maintains its position and remains the top digital currency in the world. And bringing it to the forex marketplace was welcomed by a lot of traders!
The reason is actually very simple: it secures the advantages of cryptocurrency, meaning that investors who use Bitcoin can benefit from the highest liquidity amongst all digital coins.
But there are a few extra things you need to know and this is exactly what we are going to discuss today.
It’s not influenceable
Probably the biggest benefit of forex trading with Bitcoin is related to one of the main advantages of cryptocurrency. Since we’re talking about a decentralized asset, it means that it cannot be influenced by geopolitical factors, for example.
Besides this, since there’s no bank able to control Bitcoin, you won’t deal with any overnight variations. And, last but not least, it’s a global currency, so again, trading with it cannot be influenced by macroeconomics fluctuations caused by one country’s interest rates or inflation.
No more boundaries
Another incredibly interesting aspect of forex trading with Bitcoin is that it basically eliminates all global boundaries. For example, a trader located in the United States can make a trade using Bitcoin with somebody from France, without the need to jump through fiat-related regulations.
And this integrates even more advantages, as some of the most experienced traders can actually benefit a lot from the high leverage generated by forex traders.
Encouraging lower fees
Ever since Bitcoin started being present on the forex market, it encouraged brokers to reduce their fees, in an attempt to attract even more customers.
In this case, a low deposit amount, combined with the prevalence of promotional offers – like trading companies matching deposits made by new members – are further opportunities for any Bitcoin trader out there.
And this is not everything! Through a broker, an investor can even speculate without owning any Bitcoin. This happens because trades can be made as CFDs (contracts for difference) or as a spread bet, without any additional expenses. At the same time, commissions based on volume simply add the reassurance of security!
The risks and the rewards are balanced
Of course, we need to talk about this aspect of forex trading as well. Because we’re talking about a form of financial trading, it’s obvious that it involves both risks and rewards.
Most investors have their own strategy, allowing them to identify the benefits of forex trading using Bitcoin. But, on the other side, some factors just can’t be avoided.
It’s not a secret that if you use multiple exchanges you’ll get several exchange rates, which always vary. And for inexperienced traders, this is a big disadvantage. In contrast, when using Bitcoin, you can limit your risk and avoid several losses, caused by exchange rates.
We could definitely go on with this but it’s already obvious that trading with Bitcoin could soon become one of the best things that ever happened to forex!