How to trade bitcoin
What is Bitcoin?
Bitcoin, the world's number one digital currency, is gaining worldwide popularity.
With the MetaTrader 4 platform, you can trade this fast-growing currency against the US dollar 24/7.
Due to the high volatility of these assets, many traders prefer trading Bitcoin derivatives, which makes them ideal for CFD trading.
Trade CFDs on Bitcoin in 4 steps wallet wallets
- Open a trading account with AvaTrade
- Fund your account
- Choose the currency among the contracts
- Start trading
AvaTrade is an industry-leading broker with some of the best trading conditions available, including the lowest crypto spreads in the market. Get complete instructions on trading cryptocurrency with AvaTrade.
Why trade Bitcoin with AvaTrade?
Completely Safe - Your money is always protected in your preferred account, AvaTrade offers an easy-to-use platform to trade bitcoin at real rates, we do not offer crypto wallets, we are regulated by many different regulators around the world, ensuring that your money is safe and secure from on her.
You can choose from a variety of cryptocurrencies - Trade a wide range of cryptocurrencies available on our trading platform, we offer a large number of other cryptocurrencies that you can put in your wallet wallets, such as Ethereum, Litecoin, Dash, IOTA, NEO, and Ripple EOS and Bitcoin Cash.
No hidden fees - we offer zero commissions and no commissions on bank transactions!
Transaction Speed - Open and close Bitcoin transactions instantly. We are backed by many large liquidity providers, which allows us to guarantee the speedy execution of all Bitcoin transactions.
Leverage - Increase your initial capital with generous leverage and gain greater leverage up to 20:1
Limit Risk - You can set profit and loss levels in advance by setting a stop loss or taking profit while trading. Determine the maximum amount you are willing to risk when speculating on the price, or the price at which you hope to make a profit. Future orders are also available, such as buying certain points, set lower or higher than the current market price (buy stop and buy limit)
Trading platform - You can trade Bitcoin through advanced and fast platforms such as MetaTrader 4 and MetaTrader 5, you can also use some advanced orders such as buy and sell orders, we support automated trading strategies, technical analysis tools, and fundamental analysis.
Trading Resources Bitcoin is an exciting yet volatile currency, which is why we offer many useful trading resources to help you trade Bitcoin successfully. Essential for navigating the cryptocurrency market, we also have an economic calendar that helps you keep up to date with the latest news and events that may affect your cryptocurrency portfolio.
Trade Bitcoin with Major Fiat Currencies - Unlike many exchanges that limit their clients to trading cryptocurrencies only with other cryptocurrencies, our clients can trade cryptocurrencies with well-known fiat currencies (US Dollars, Euros, Japanese Yen, etc.)) to trade.
AvaProtectTM - You can trade bitcoin using the AvaProtect risk management feature, which allows you to keep your money during the transaction.
Trading Center - Choose the best technical settings on your Bitcoin charts using the Trading Center built into all our platforms.
How Bitcoin became a very popular currency
Bitcoin was the first digital currency to be created. It is also the most valued, capitalized, and most traded currency in the world. Bitcoin trading has been booming, mainly because it is a very volatile digital currency. Trade this currency to get the most possible return when it fluctuates - between ups and downs. This is exactly why investors love to trade bitcoin.
When the market is volatile, there are many profit opportunities available, which is why Bitcoin stands out among currency traders.
Media plays a huge role in bitcoin's volatility. As soon as the breaking news comes out, the currency's volatility will increase, and of course, traders will benefit. History shows that bitcoin traders and speculators have often pushed the cryptocurrency to the fore in CFDs. Bitcoin (BTC) has been used as the payment method of choice for merchants, it is also increasingly being used for money transfers and for other commercial purposes.
Investors are turning to Bitcoin trading more than ever, which is why the ancestral currency has a value in itself. Although it has nothing to do with governments and central banks, it is a much-needed financial transaction tool.
Bitcoin mining is done using powerful computers and software. A maximum of 21 million bitcoins are allowed, after which there will be no more bitcoins. Algorithms that control bitcoin production limit the amount and speed of bitcoin production. It is a finite good - there is a fixed quantity that ensures that higher demand will always support the price.
In this way, Bitcoin is similar to other commodities such as crude oil, silver, or gold.
Don't miss your chance to trade bitcoin. Start trading now!
We will provide you with Bitcoin trading via the MetaTrader 4 and MetaTrader 5 platforms, which you can trade against the US Dollar and some other currencies on all days of the week, 24 hours a day.
Buying Bitcoin vs Trading it
There are many ways to buy cryptocurrency bitcoin and discover the opportunities this asset offers, as there are crypto features that allow customers to buy cryptocurrency using credit cards and bank transfers.
- Initially, exchanges were the only way to buy cryptocurrency bitcoin, but these methods have grown thanks to the fact that bitcoin is the most popular and most used currency in the world.
- When you buy bitcoins through an exchange, you need to open a crypto wallet, and then you will directly own the coins, and you can take advantage of factors that bring “profits” to the bitcoin owners.
- There are also peer-to-peer bitcoin exchange sites where people exchange bitcoins for cash, as these sites have grown in popularity as they match up with local traders who want to easily trade bitcoin using local payment methods.
- Some Bitcoin ATMs are similar to traditional ATMs in that they are not tied to any bank but with cryptocurrency Bitcoin wallets. These machines allow investors to set the price of Bitcoin and buy the currency with debit and credit cards.
- Bitcoin ATMs can be located from a map, making it easier for some to withdraw cash, and some Bitcoin users refuse to pay more than 5% when they use the ATM.
- Investors can be exposed to price changes by trading Bitcoin derivatives (such as CFDs), because it is a financial asset like other assets, so investors do not own Bitcoin, but only expect its price changes.
- Trading Bitcoin through derivatives is attractive to many investors because profits can be taken regardless of the price. Derivatives can be traded like leverage, and you can make bigger profits when the price is in your favor.
How do you buy bitcoin? It all depends on your investment goals and ambitions. When you buy Bitcoin through an exchange, ATM, or trading site, you are considered a HODLer.
The term “HODL” is for the Bitcoin community and means to hold the currency in the long term, you basically understand the future of Bitcoin, and you never worry about periods when the price of Bitcoin goes down, but in the long run, you will do it when you reach the pre-determined interest when the targets are Or when it makes sense to do so.
But if you are an active day trader then CFD trading is better for you because bitcoin is usually a very volatile asset which means short-term bitcoin traders see when prices are among more opportunities.
Factors that affect the price of Bitcoin
Like any other financial asset, the price of bitcoin is closely related to supply and demand in the market. Like gold, market participants will determine the value of bitcoin-based on its use and adoption.
- The second factor affecting the price of Bitcoin is the media's talk about it. At the beginning of the birth of Bitcoin, the media described it as a cloud from the past, a kind of dark currency.
- With the advent of social media, media coverage of bitcoin and blockchain first provided a proper basis for cryptocurrencies and encouraged investors to use them.
- Bitcoin transactions may be decentralized, but the power of major governments around the world cannot be ignored. In addition to taxes, Bitcoin regulations are often changed in various aspects.
- One of the reasons Bitcoin prices fell so sharply after their highs in late 2017 was intense regulatory pressure from China.
- The price of bitcoin is also affected by everything that happens in the cryptocurrency market. This may have something to do with Bitcoin's surge during the May 2020 coronavirus pandemic.
- When the mining reward halves, the bitcoin halves, which reduces the supply of bitcoin and limits mining, and as the supply decreases, the demand rises, and the price of bitcoin increases.
Bitcoin Reaches Prominence
The currency was created around 2008 by Satoshi Nakamoto who was researching the future of money in financial markets, with a paper published at the time via a cryptocurrency mailing list. The first software client was launched in 2009, in collaboration with many other developers in the open-source team, be careful not to reveal your identity.
In October 2009, the first Bitcoin exchange was established. At that time, one US dollar was equivalent to more than 1,300 Bitcoins. Over the years, the price of Bitcoin exceeded 10,000 US dollars, setting an unprecedented record. Cryptocurrency.
This allows us to see how expensive Bitcoin is today, which means a real bargain. Bitcoin has been trading with a penny for a short period, but in 2010 things started to change; With the increase in the number of bitcoins in circulation, the digital currency itself has become more valuable.
The increase in demand is also reflected in the exchange rate. At the beginning of 2010, Bitcoin development was strong, Bitcoin issuance began to increase with increased demand, and by November of that year, 4 million Bitcoins had been "mined".
By 2011, the mysterious founder of the cryptocurrency Bitcoin had disappeared, and some people realized that the unique ability of this digital currency, especially in the field of investment in the financial market, its quality as a store of value, prompted them to ramp up their currency. Work and develop it until it reaches its fullest potential.
At the end of 2017, the most famous cryptocurrency in the world traded for around $20,000, and at the moment, cryptocurrencies including Bitcoin have become a basic and necessary thing in the wallet of every investor.
Despite this rally, the cryptocurrency market experienced an extraordinary decline during 2018, but it quickly regained control.
With the emergence of the Corona Virus 2020 pandemic, the economies of all countries of the world have closed as most of the world governments have imposed a curfew and closed completely to control the epidemic.
This caused the major currencies to drop, helping Bitcoin and other cryptocurrencies to emerge and prove to be the leading “digital gold” in the financial markets, as the price of Bitcoin soared above $23,000 in December 2020. This year has seen suffering and decline due to the Coronavirus, but Bitcoin provides the cure. Optimized for these wallets!