As Bitcoin has become more mainstream, people have been looking for ways to profit from the currency’s meteoric price increases. Like with other currencies we’ve seen an explosion of forex trading and arbitrage opportunities over the last year. We review some of the best.
3 Routes to Trading Bitcoin
Today there are 3 main ways you can try and trade on BTC. Each of them has advantages and disadvantages:
- Binary Options
- Forex Trading
- Trading Bots / Arbitrage
This is a relatively new instrument with a much simpler interface that requires no forex or trading experience. With binary trading you only need to choose the direction of the price and if correct, you win. Simple. You never risk more than you bet and you don’t have to get the spread or pips correct. Just choose whether you think the price is going up or down and set an expiry time to check your trade.
When it comes to forex and Bitcoin, it works just like trading any other global currency. There are a range of forex brokers that currently other the cryptocurrency for live trading and you get access to all of the charts and tools you would with any other fiat currency. There is a much bigger potential for gain here as wins are based on pip movement but that also means a bigger risk of loss. This is not recommended for beginners or people without previous forex experience.
Robots and Arbitrage
The latest trend in the world of crypto trading is the emergence of deciated Bitcoin trading robots and arbitrage systems. Each of these claims to be able to take advantage of either differentials in prices between exchanges or use advanced algorithms to predict the movement of the currency. You usually have to pay to get access to the robot but little or no knowledge is needed to start trading. Since these are 3rd party products these also bear a risk but there are some better ones available.
Choose Your Weapon
Whichever route you choose, the key is good information and an understanding of the tools. Click on an icon below to learn more.