There are several ways of trading Bitcoins.
Bitcoin Trading with CFDs
Many people trade Bitcoins as CFDs (Contracts For Difference) through a broker. When trading Bitcoins as CFDs, you trade your Bitcoins as you would trade a CFD stock or any other asset. You either win or lose money depending on whether you are “long” and believe that the asset will go up or “short” and believe that the stock will go down. With a CFD, you do not own the Bitcoins but bet on the direction that the asset – here, Bitcoins – will take.
Some of the large brokers in Bitcoin trading are:
The advantages of trading Bitcoins as CFDs are:
- The high degree of security. You to NOT own the Bitcoin when you decide to “buy Bitcion” in a CFD, and therefore, the risk of being hacked (ransomware) and losing your Bitcoins is gone.
- The potential for leverage (to gear your investment)
- The ease of trading Bitcoins
Bitcoin Exchanges – Buying Bitcoins
Another way to trade Bitcoins is though a Bitcoin exchange. A Bitcoin exchange is an exchange that allows you to buy and sell Bitcoins online. In order to use a Bitcoin exchange, you will need […]
Some of the most famous Bitcoin exchanges in the market right now are:
The advantages of using a Bitcoin exchange for Bitcoin trading are:
- You actually get your Bitcoins. When you press “Buy Bitcoin” you really own the Bitcoin)
- You do not have to renew your assets all the time and pay a fee.
When trading Bitcoins, there are some tools that are good to know in order to trade crypto cash. Here are the most important ones:
Like real coins, Bitcoins need a place to be. Bitcoins need a wallet. Since Bitcoins are digital, so is a Bitcoin wallet. Some of the most popular wallets for Bitcoins, and any other crypto cash currency, by the way, are Electrum.org, Blockchain.info and Jaxx.io. Most Bitcoin wallets are free. A Bitcoin wallet makes it possible to trade Bitcoins with other individuals around the world. You need a Bitcoin wallet in order to buy and sell Bitcoins.
Not as important as the Bitcoin Wallet but nice to have. BlockTrail is a product owned by Bitman that helps you test your Bitcoin addresses and make sure that your buying and selling transactions are approved by the exchange network. BlockTrail is most famous for its Bitcoin mining equipment. BlockTrail also offers a Bitcoin wallet.
In an area with high value, you also have bandits, and the Bitcoin area is no exception. Bitcoin ransomware is an evil computer virus that blocks access to your files and demands a Bitcoin ransom in order to un-block your files. If you are hit by ransomware, contact an expert who can provide you with the right support and can help you pay the ransom fast. If you want to avoid ransomware when you trade Bitcoins, you should trade CFDs instead (see the first part of the Bitcoin trading article).