What is Bitcoin?
Bitcoin is a digital cryptocurrency which can be traded like a commodity, with exchanges acting as intermediaries for transactions between bitcoin and other currencies. When considering how to trade bitcoin, it is important to remember that it is purely a digital asset (it has no physical properties), and as such is an unprecedented phenomenon which can only be accessed and stored digitally.
How to Trade Bitcoin as an Owned Asset
When trading bitcoin as an owned asset, a bitcoin wallet is required in order to store bitcoins digitally on a device. There are many different wallets to choose from, and it is from these that they are traded, usually through an exchange, between buyers and sellers.
Buying bitcoin as a digital asset can be a fairly risky option given its immense volatility. It can often be seen to rise or fall in value by hundreds of dollars on a weekly basis since its exponential explosion in value in 2017. Since it has only recently started being purchased by such a large volume of people, analysing its current market behaviour to make investment decisions for the future can be challenging. As such it is worth being cautious if exploring this method.
How to Trade Bitcoin CFDs
Although bitcoin is not traded on the forex market (unlike regular currencies), it is possible to trade bitcoin CFDs, as this does not involve actually owning bitcoin as an asset. This means speculating on the cryptocurrency’s price movements against a regular currency (i.e. whether it will rise or fall in value). If it moves with you, you profit, if it moves against you, you make a loss.
ADS Securities offer a quick and easy way for you to trade bitcoin CFDs, and also allow you to leverage your investments should you wish. We also offer cutting edge trading tools which you can use to analyse the bitcoin market and make more informed investments. Since 1 CFD equates to 1 bitcoin, there is also great flexibility with each trade in this respect.
How to Trade Bitcoin on Mobile
It is now also possible to trade bitcoin CFDs through OREX, our new generation trading platform available for Windows, iOS and Android. This allows you to trade over 1000 CFDs and 60 currency pairs whenever and wherever you are. OREX allows for greater trading flexibility, and is perfectly adapted to the fast-paced nature of the bitcoin market as a result.
It is also possible to access some bitcoin wallets from a mobile device, which means you could both buy bitcoins and store them on your phone, as well as trade bitcoin CFDs from the same device. This could help to diversify your investment portfolio and reduce overall investment risk.
When developing a trading strategy, it is important to remember that bitcoin’s value is governed solely by supply and demand. Given that it is completely unregulated and decentralised, this can make it very volatile.
That being said, it is still possible to research its price movements and make informed investments. You simply have to adapt your trading strategy to the volatility and be prepared for significant swings in value when investing and analysing the market.
Trade Bitcoin CFDs With ADS Securities
You can open a live CFD trading account with ADS Securities to trade bitcoin CFDs. To do this, simply click on the link and go through the necessary steps to sign up. Offering great leverage, the ability to go long or short, and cutting-edge trading tools, ADS Securities can fulfil your bitcoin CFD trading requirements.