If you are interested in trading Bitcoin then there are many online trading companies offering this product usually as a contract for difference or CFD. Avatrade offers 20 to 1 leverage and good trading conditions on its Bitcoin CFD trading program. Why Trade Bitcoin? Jul 29, · Best Bitcoin Trading Platforms. The first step to get started trading bitcoin is choosing a reliable platform. When starting out with bitcoin trading, . Mar 24, · All trade, whether it’s stock trading or bitcoin trading, involves a certain element of risk. One of the main risk factors in bitcoin trading is the volatility of the bitcoin price. One of the ways you can mitigate risk is to put limit-close and stop-loss orders in place. That way, you can secure any profits or limit any losses before the market gets out of hand.
Bitcoin trading conditions⋆ Bitcoin trading conditions on the Plus platform ⋆ |
To trade, when simply put, one first finds a suitable opportunity or price of Bitcoin to trade, takes a position — which generally means to determine whether or not the price will rise or fall, and lastly all that is left is to monitor your trade and take a call whether to buy or sell.
Increase your exposure to Bitcoin with leverage using borrowed funds to increase one's trading position and go long or short on the price — all without the expense of an exchange account.
Having a trading plan is crucial to success for any trader but even more so for Bitcoin traders because the market can see high amounts of volatility, given that volatility makes the market extremely attractive, but difficult to trade. This is why your trading plan should include ways to manage risk, by outlining your goals and a methodology for entering and exiting trades — known as a trading strategy.
Some tips, from analysts at UK-based brokerage IG Group, for creating a trading plan is to set out what you want to achieve from your trading, broken down into short and long-term goals. What is risk-reward ratio? The risk-reward ratio measures how much your potential reward is, for every dirham you risk. It is measured in a straightforward mathematical calculation: where the price at the start of the trade is subtracted from the price at the end of the time period of the trade, with the subtracted amount divided by the starting price.
While choosing which markets you want to trade Bitcoin, your trading plan should also include the way you will analyse the Bitcoin market: either through technical or fundamental analysis. A deal ticket, commonly known as a trading ticket, is a record of all the terms, conditions, and basic information of a trade agreement. You can also define your close conditions: set a stop to close your position when the market moves against you by a certain amount, or a limit for when it moves in your favour.
What to keep in mind when buying, trading Bitcoin Image Credit: Seyyed Llata Senior Designer, Gulf News Also in this package Buyer friendly gold: Prices to stay low in the weeks ahead, but not for long UAE: Some money tips to keep in mind when it comes to saving ahead of the holiday season Know all your credit card interest rate charges, how to locate and maybe avoid them Forced to take a loan during COVID? How to increase your loan eligibility in the UAE.
Will bitcoin stage a blockbuster comeback? Image Credit: Gulf News archive. What is a fiat currency? Fiat money is a government-issued currency that isn't backed by a commodity or any underlying asset. It is a currency established as money by government regulation that does not have any intrinsic value.
What this means is Fiat money does not have use value, and has value only because a government maintains its value, or because parties engaging in exchange agree on its value. Fiat money gives central banks greater control over the economy because they can control how much money is printed. Most modern paper currencies, such as the US dollar, are fiat currencies. Bitcoin is up about per cent in and the Bloomberg Galaxy Crypto Index has doubled in value amid a slew of firms looking to deepen their offering of cryptocurrency services.
Image Credit: Reuters. What is a CFD and how they work? A contract for differences CFD is a financial contract that pays the differences in the settlement price between the open and closing trades. CFDs essentially allow investors to trade the direction of securities over the very short-term. A CFD essentially enables you to trade a contract based on prices in the underlying market.
CFDs are leveraged products, meaning you can put down a small initial deposit and still gain the exposure of a much larger position. This can magnify your profits, though it can have the same effect on your losses. What is a long or short trade?
A long trade is initiated by purchasing with the expectation to sell at a higher price in the future and realize a profit. On the other hand, a short trade is initiated by selling, before buying, with the intent to repurchase the stock at a lower price and realise a profit.
Technical analysis focuses on the price movement of a cryptocurrency and its historical patterns, while fundamental analysis looks at the external factors and macroeconomic data that impact the digital asset.
Whichever method you choose, it is important to remain up to date with any news that could impact the market, as cryptocurrencies are especially sensitive to market sentiment. Instead, wait for it to settle and purchase after the sell-off point Image Credit: Shutterstock. Search the site.
Share on Whatsapp. Share on Mail. Share on LinkedIn. Subscribe No Thanks. Dear Reader, please register to read gulfnews. Register to read and get full access to gulfnews. New clients can decide to either create a free demo account where they can test trading Bitcoin or a real account. A demo account does not require any deposit and can be created within a few seconds.
Only an email address and a password are mandatory to complete the process. A practice account is great for people who want to test platform of the broker or try out new strategies.
The following step by step guide will teach you how to open both a real and a demo account. Plus has a very clear and intuitive platform. Once you do that a new table with all available cryptos at the Plus platform will appear. Bitcoin as the most popular cryptocurrency is featured on the list as the first option.
Remember that with Plus you can not only speculate on a growth of Bitcoin but also on a possible downfall Short position. Plus is a well-established company with years of experience in the field. It is fully regulated in almost every European, Australian and Asian country. Plus ltd is, however, one of the biggest European CFD provider, that is even listed on the Main Market of the London Stock Exchange , which makes such occasion extremely improbable to occur.
Cryptocurrency exchanges are not insured against bankruptcy or against potential loss that can be caused when the exchange is hacked. Which means that every dollar or pound you invest is worth 2 times more. Some people might be used to leverage up to that was in the past offered by Plus but later on reduced by the CySEC. Plus has three types of fees. First of all, there is the fee called spread which is basically the difference between the amount you pay for Bitcoin and the amount you receive when you decide to sell it back.
The second fee is the overnight fee, that is charged to your account when you stay in a position overnight. The third fee is inacivity fee.