COMMUNICATED CONTENT – We see more and more young traders going into bitcoin trading. They are attracted to the hype around Bitcoin. But also because Bitcoin knows huge price fluctuations. This volatility in the price of Bitcoin makes beginning traders dream. They imagine making a fortune quickly, but hide that it can also turn into a nightmare.
In this article on Bitcoin, I will be the bearer of the bad news. You never get rich quick and easy. On the contrary, Bitcoin is the carrier of all the germs of what experienced traders want to flee: risk and uncertainty.
We can trade Bitcoin on specialized exchange platforms, but these are not always monitored or controlled by regulators. Many have no obligation or standard to follow to protect their clients. It’s the Wild West. In case of problem, disappearance of the exchange platform, manipulation or piracy, as we see too often … there is no possible way out. The trader is broke.
It is the solution most used by novice traders and the most risky. On the other hand, one physically owns the bitcoins (the counterpart is that it will be necessary not to lose the bitcoins on the pen drive or the computer, nor forget the private key, in which case there will be no means of recovering the investment, the bitcoins will be definitely lost) .
You should never leave your Bitcoin on the website (web wallet), if it disappears, the bitcoins go with it. They therefore need to be transferred “physically” in a systematic way. After all, the solution of cryptocurrency platforms is for the “general public”, who are not demanding.
Regulated brokers offer Bitcoin trading. The advantage is that they are controlled, monitored by regulators, thus offering guarantees of seriousness and legal protection to the consumer in case of problems. The website will not disappear from one day to the next (this week has already passed), you are insured in the event of the site going bankrupt.
This is the case, for example, with ProRealTime Limited Risk CFDs. You do not physically own Bitcoin, but rather a derivative of Bitcoin (a Bitcoin CFD), which allows you to take advantage of price fluctuations. We can also trade Bitcoin Cash, Bitcoin Gold, Ripple, Ether and Litecoin. This also prevents the theft of your bitcoins; you will not be able to lose them.
When it comes to declaring your taxes, it is extremely simple with a regulated broker, since he is in charge of calculating what you must declare. You only have to indicate the number. In contrast, cryptocurrency platforms leave you alone. If you pass hundreds or thousands of orders a year, you will need to count and file them one by one for the tax inspection case.
At PRT CFD we also have a real trading interface. We are no longer amateurs. This opens up possibilities for us to trade stocks, indices, commodities … We have no limits on trading possibilities.
In addition, you will benefit from guaranteed stops that are a revolution in trading. No cryptocurrency exchange platform offers guaranteed stops. Trading without a guaranteed stop with such volatile cryptocurrencies is outright unconsciousness.
The CME allows trading Bitcoin futures This solution, which goes through the Chicago Mercantile Exchange (the Chicago Stock Exchange), is also safe and regulated.
In this case too, we will buy or sell a derivative of Bitcoin, the Bitcoin futures. We will not physically possess them. PRT Futures allows you to trade bitcoins with the world’s number one Futures in excellent conditions. However, this is reserved for the most capitalized and is limited to bitcoins only, for now. Instead, you can also trade things other than bitcoins: stocks, indices …
Conclusion on trading Bitcoins
The most common mistake bitcoin traders make is signing up for cryptocurrency platforms that are unregulated, offer no guarantee or security of their capital, and are limited. It is difficult enough to make money on the stock market with good trading tools, it is better to make the most of all the opportunities and guarantees. However, the Bitcoin trading tools like Bitcoin Trader can be of great help, especially if you are an amateur. If you are interested, more information can be found in the bitcoin trader review.
Hopefully this article has given you an idea of how you can get started with Bitcoin trading. Good luck!
