Compare Bitcoin Forex Brokers

Crypto trading refers to the process of buying and selling digital money to speculate on future price movements. A shift in demand/supply or new crypto legislation can dramatically change crypto prices, therefore, traders must ensure that they fully understand crypto price volatility before starting to trade any cryptocurrency. Crypto traders can use crypto exchanges to build their positions or trade Bitcoin via Forex/CFD brokers.

• • A cryptocurrency exchange is an online business that exchanges conventional fiat money for digital currencies. The purchased crypto is stored in software/hardware wallets
  • Forex/CFD Brokers offer cryptocurrency trading on MetaTrader like any other CFD product. In this case, no wallet is involved

Bitcoin CFD Brokers

This is a basic comparison of a few Bitcoin CFD Brokers.

Notes:

• MIN DEPOSIT:

Refers to the minimum amount of money required to open a new account with the broker.

• BTC/USD SPREAD:

The spread is the difference in points between the best-buying and the best-selling price.

• BTC/USD OVERNIGHT RATE (LONG/SHORT):

It refers to the cost of maintaining your Bitcoin position overnight. Bitcoin overnight rates are always negative as Bitcoin and other digital currencies offer no interest rate. DeFI can change that, but there are additional risks involved.

• WELCOME BONUS (WHEN IT IS AVAILABLE):

Generally, there are three types of bonuses:

□ No-Deposit (Free) Bonus: Some brokers offer a promotional bonus without requiring an initial deposit. You can withdraw a No-Deposit Bonus after trading it several times

□ Cash Bonus: You can trade with a cash bonus and withdraw it (after trading it several times)

□ Credit Bonus: You can trade with a credit bonus, but you cannot withdraw it

In conclusion, No-Deposit and Cash Bonuses are good deals, while, a Credit Bonus is a bad deal.

CRYPTOCURRENCY -FREQUENTLY ASKED QUESTIONS

These are some basic questions and answers about cryptocurrencies

• What is a Cryptocurrency or Digital Currency?

A cryptocurrency is a virtual exchange medium that represents digital money. All cryptocurrencies use free (open-source) software to generate particular cryptography and to operate as a decentralized network. The first-ever cryptocurrency Bitcoin (BTC) was invented in 2009 by an unknown programming team under the name "Satoshi Nakamoto".

• What are Altcoins?

Altcoins are cryptocurrency alternatives to Bitcoin. Some altcoins, like Bitcoin Cash, are based on Bitcoin’s open-source protocol.

• What is the Difference Between a Coin and a Token?

The difference between a Coin and a Token exists in their structure:

-A Coin is a cryptocurrency that represents digital money and operates as an independent payment system

-A Token is a representation of a particular asset that depends on another blockchain (platform) to operate

• What are Crypto Exchanges?

A cryptocurrency exchange is an online business that allows the exchange of conventional fiat money for digital currencies.

• What is the difference between Circulating Supply, Total Supply, and Max Supply?

-Circulating Supply is the number of coins that are circulating in the public's hands (similar to free float in stock trading)

-Total Supply is the total number of coins in existence now

-Max Supply is the maximum amount of coins that will ever exist (now and in the future)

• What is Cryptocurrency Mining?

Cryptocurrency mining is a validation of all transactions of digital currency. To cover their costs and time, miners get as a reward new units of that cryptocurrency. In that sense, mining becomes a process of generating new units of a particular cryptocurrency.

• What is a Cryptocurrency Wallet?

A cryptocurrency wallet is an electronic wallet that can receive, store, and send a particular cryptocurrency (Bitcoin, Ethereum, etc,). Most cryptocurrencies have an official wallet but other third-party wallets do as well. There are several types of cryptocurrency wallets:

(1) Software wallets

(2) Hardware wallets

(3) Online wallets (built-in exchanges)

• Why Bitcoin?

Nowadays, the general interest in cryptocurrencies is peaking, and that is especially true as concerns Bitcoin (BTC) and Ethereum (ETH). Bitcoin is a very volatile digital currency, much more volatile than the most volatile exotic currency pair. The bitcoin price often makes extreme swings of more than 50% in just a few days. That explains why brokers provide limited trading leverage when trading Bitcoin. Forex/CFD brokers support Bitcoin as a currency for deposits/withdrawals but also as a trading currency. Mainly, they offer Bitcoin against USD (BTC/USD)

• What are the Risks when Trading Bitcoins CFDs?

These are the major risks when trading Bitcoin CFDs:

(1) Bitcoin price has shown extremely high volatility over the years. Therefore, applying trading leverage is very risky when trading crypto, especially for beginners

(2) Bitcoin trades in wide spreads, which means extra cost for every transaction

(3) Trading Bitcoin via Forex/CFD brokers is the subject of overnight rates

■ Bitcoin Forex Brokers

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Warning: Please be careful with your money 

When sending funds to an exchange or other counterparty you are trusting that the operator will not abscond with your bitcoins and that the operator maintains secure systems that protect against internal or external theft. It is recommended that you obtain the real-world identity of the operator and ensure that sufficient recourse is available. Exchanging or storing significant funds with exchanges is not recommended.