How To Trade Bitcoin On MT4
Barely a day goes by without Bitcoin making the day’s news. Bitcoin is the virtual currency that has captured the eye of traders and the media, as its value has shot up by over 800% during the course of 2017. Whilst traditional markets are experiencing low volatility, Bitcoin is the most volatile asset that traders have seen for a while.
Just a few years ago bitcoin was something for tech geeks. However, the cryptocurrency is now moving towards the mainstream, after reputable exchanges such as the CBOE, CME and Nasdaq have either started trading Bitcoin futures, or intend to offer bitcoin futures in the coming months. Bitcoin trading is becoming more accessible to all those who are brave enough to take it on.
How can I trade Bitcoin?
Previously it was only possible to trade bitcoins through an online bitcoin exchange. There were three main bitcoin exchanges. However, trading through these meant that you would have needed a separate account to trade bitcoin, than to trade other assets or currencies. Then, there was also the added problems of owning and storing bitcoins online, where security has been an issue.
As bitcoin trading is becoming more widespread, an increasing number of brokers are offering the possibility to trade bitcoins. Trading through a forex broker is one of the easiest, most convenient ways to trade Bitcoin. Vantage FX is an award-winning forex broker, which offers the possibility of trading bitcoin through a MetaTrader account.
Bitcoin & MT4
If you choose to trade bitcoin on MT4 through Vantage FX then you will be trading it as a Contract For Difference (CFD). In this way, you never actually own the bitcoin itself, but instead you are buying and selling a bitcoin CFD, which imitates the prices of the bitcoin, but never results in ownership of a bitcoin. By trading through CFD’s many of the concerns over ownership, such as online security and storage of the bitcoin, are avoided. Furthermore, you have the possibility of shorting the bitcoin, also known as short selling, when you trade as a CFD. This means you can make money out of a bitcoin trade even when the price is falling.
As mentioned earlier, bitcoin is an extremely volatile market, this is mainly down to the scarceness of bitcoins and the lack of central bank involvement. The value of a bitcoin can rise or fall thousands of points in a very short space of time. Only recently bitcoin shed over 20% of its value in 48 hours. With this in mind it’s important to consider carefully whether it is the right asset for you to trade. With the right risk management this volatile asset could provide plenty of trading opportunities.
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