What is the Bitcoin price and its value in real time? In this guide, we will cover a very important topic: how to invest in Bitcoins, without buying them. Not only! You will also understand how to trade Bitcoin with CFD!
Before proceeding we tell you right away that Bitcoins are one of the most discussed cryptocurrencies in recent years. Recently they have also attracted the attention of many traders because they have seen their value rise to $ 20,000 in 2017 and then drop to $ 4,000 in the months to follow. Subsequently the price went back up, making Bitcoins one of the most volatile assets to trade on.
In this guide, you will:
- learn and understand what Bitcoins really are;
- how to invest in Bitcoins without buying them.
What are Bitcoins?
Bitcoins were the first electronic money in the world. They were created by Satoshi Nakamoto (a fantasy name, since the name of the true creator is still unknown).
The main aspect of this cryptocurrency is that there is no central body that produces them (as is the case for all the other currencies in the world). So we consider them as a decentralized currency that cannot be controlled by anyone.
These are generated by a network of databases, which among other tasks (in addition to that of generating money), also have that of keeping track of every single transaction. This takes place within the database network.
How many bitcoins are there? The total number will be around 21 million bitcoins, in 2019 the circulating number is around 18 million in 2020.
The transactions are all made in an anonymously.
These were created in 2009 and today we can say with all frankness that it represents an anonymous and safe method of exchanging money on the internet.
How to do trading with bitcoins: platforms and opinions
If you are looking for where to invest on the Bitcoin dollar listing, you will know very well that today there are many brokers that allow you to trade on this cryptocurrency, which is classified as any other asset.
In most cases, CFD trading is used, then you will use derivative financial instruments, useful to speculate on the value changes of bitcoin.
Once again, remember to choose only regulated, safe and reliable online trading platforms for CFD (Forex brokers).
Below you can choose the best brokers to trade with Bitcoins, such as eToro, which offers the possibility to buy Bitcoins or to trade CFD on the Bitcoin Dollar quote.
Usually Bitcoin is exchanged with dollar in the BTC/USD cross.
However, not all brokers offer the possibility to select this asset. Among the online trading platforms that best lend themselves to this type of investment we have eToro, AvaTrade and IQ Option.
Trading CFD with Bitcoin on eToro
Bitcoin is an asset that is also used in CFD trading. Here you will speculate on the value of digital currency (without ever owning it). Precisely because CFD are also derivative instruments. And one of the best CFD brokers available is eToro, a leading broker in the Social Trading sector.
The eToro broker allows you to trade not only on Bitcoins, but on hundreds and hundreds of different assets (equities, stock indices, currency pairs, commodities, ETFs). This broker offers an easy-to-use trading platform, designed also for those who have never done CFD trading before. And you can also have access to a free eToro demo account, with which you can try the platform and do all the practice you need.
The eToro broker is well known for its introduction of Social Trading. Through Social Trading it is possible to follow other professional traders in real time, with the possibility to copy (automatically) all their trading operations. You can also choose more than one trader to follow, checking his performance, statistics and historical operational data. eToro therefore allows you to trade CFD alone or by following other traders through Social Trading.
Trading Bitcoin with CFD on AvaTrade
The CFD broker AvaTrade also offers CFD trading on bitcoin, among other assets available to its customers (including another cryptocurrency, Litecoin). The leverage that the AvaTrade broker makes available for bitcoins reaches up to 1:20 for professionals, while it reaches 1:2 for retail traders, and it is possible to trade both on the Webtrader trading platform and on the famous MetaTrader 4 (the most used trading platform by traders).
AvaTrade has several locations around the world, but for Europe, the registered office is in Ireland. Obviously, the AvaTrade broker is a CFD broker regulated by the CBI (Central Bank of Ireland) and therefore respects the directives of the European MiFid. AvaTrade offers different trading platforms, both in web-based version and in downloadable version
Among other things, the AvaTrade broker supports automated trading and social trading by offering:
- DupliTrade Platform
- Trading signals service from MQL5
- ZuluTrade Platform
- Webtrader Platform
Trading Bitcoin with CFD on IQ Option
The IQ Option broker not only allows CFD and Forex trading, but has expanded its offer by including numerous other financial products, including cryptocurrencies.
The famous bitcoins are also available among the hundreds of assets with which you can trade. Obviously, with CFD trading you will never really own the bitcoins on which you are going to invest. You will only speculate on the change in the value of the cryptocurrency.
The IQ Option trading platform is extremely easy to use, as well as well designed. You can also try it through a free demo account for as long as you want. If you are interested in opening a real online trading account, only € 10 deposit is required, and you can start trading with IQ Option, a regulated, solid and above all transparent broker.
Advantages of trading on the BitCoin Dollar listing
Below we will analyze some of the advantages that we have when we choose to trade the Bitcoin Dollar listing with CFD.
- Possibility to save money on the transactions compared to other trading online methods, which involve the payment of a commission for each operation carried out
- They are a very volatile asset, therefore it can be used above all to trade in the short term with CFDs, which offer leverage.
- Great for short term trading, due to their volatility.
Bitcoin: final opinions
As we said at the beginning of the post, it is not difficult to find trading platforms that offer the possibility to trade CFD on BitCoin / Dollar. Some are cheaper than others, based on the features they offer.
The important thing is to stay up to date on the latest news concerning this asset. Since they are a very volatile asset and can change their value very quickly, we recommend using a good financial chart to follow the fluctuations in the value.
It shows the value of Bitcoin. Usually the Bitcoin value is expressed in US dollars (USD), but it can also be expressed in euros or in other currencies.
No, each exchange shows its own Bitcoin value, however they all are quite similar between them.