October 1, 2020

Bitcoin Forex Trading Explained

Bitcoin trading is becoming more and more popular, as the cryptocurrency market fluctuates and allows you to generate profits any day of the week, at any time.

Bitcoin trading is becoming more and more popular, as the cryptocurrency market fluctuates and allows you to generate profits any day of the week, at any time. As with the forex market, many brokers / exchanges began to provide their services for professional traders who constantly invest in these assets, although the great volatility of prices was what distinguished cryptocurrencies from any other market currently operating.

Cryptocurrencies can be traded, just like forex currencies, as future / perpetual contracts that will be bought or sold at a specific price and will return an ROI (Return On Investment). In this opportunity, we will talk a little about Forex and Bitcoin, in order to understand how they can provide profits to those who decide to invest in these markets.

AltSignals is offering some of the best and most accurate Bitcoin and Forex trading signals.  

Disclaimer: this post should not be considered investment advice. This is only for educational purposes only. Never invest more than what you are able to lose and always ask for information to your professional financial advisors. We are not financial advisors.

What is Bitcoin?

Bitcoin is a cryptocurrency that works like a digital system. As a currency (equal to the US dollar or the Euro) it can serve as a valuable asset to obtain products, services and generate interest. However instead of having a government entity – such as a central bank – that issues and supports it, it is based on in the digital system that was devised by its creator, Satoshi Nakamoto, who published Bitcoin’s white paper in a specialized Internet forum. 

As a consequence, one of the most outstanding characteristics of Bitcoin is that it does not belong to any country or government. Since its creator is anonymous and decided that his invention should be licensed, it does not belong to any individual or private company. Those who keep its platform running are the users themselves.

What is Forex?

Forex is the Foreign Exchange Market, where multiple investors exchange currencies at an agreed price through a network of buyers and sellers. The strongest currencies traded in this over-the-counter market are the US dollar, the euro, the British pound, and the Japanese yen.

In Forex, orders are processed through a global network of banks in the world’s major stock markets for 24 hours. Large, medium and small investors, companies and central banks convert one currency into another, with the aim of obtaining profits.

As in any market, those who aspire to be successful in the Forex market must know that caution and risk are necessary. In this market, there are great upheavals that move the prices of supply and demand, generally due to manoeuvres of balance and monetary imbalance.

In the middle of the process, large investors, usually transnationals and national banks, interact, and on a smaller scale, but no less important, investors such as companies and private banks act.

Financial intermediaries, smaller banks and smaller investors join the event, all the mentioned players have the possibility to trade with each other, and finally, there is you, the beginning trader, the smallest of investors.

Forex and Bitcoin trading

Despite the fact that Bitcoin is much more volatile and unpredictable than the assets available in the Forex market, many traders have decided to register on crypto exchange platforms or include cryptocurrencies on their trusted trading platform, in order to receive profit from the fluctuations in the price of each pair.

Today, most of the Forex traders also trade the most significant cryptocurrencies and keep track of the market, so it’s not actually a matter of traders leaving Forex for crypto but including Bitcoin (and some altcoins) into their favourite trading assets.

AltSignals Team

Proficient authors guiding you with transparency, integrity and education through the finance international markets

The AltSignals writing team consists of experts dedicated to the world of finance and technology, with a particular focus on cryptocurrencies and forex. Our writers bring a broad range of knowledge and experience, cultivated through years of arduous and direct involvement in financial markets, as well as intense technological collaboration.

Editorial approach

At AltSignals, we believe that transparency and education are the key to empowering our readers. Therefore, our content is meticulously researched to ensure its accuracy and thoroughness. Each of our articles is created with the aim of providing educational insights and in-depth analysis, helping both beginners and experienced traders.

Commitment to quality

Integrity is certainly the foundation of our editorial process. The team follows rigorous journalistic standards with careful review, all to ensure that each publication is meticulously researched and exceeds our readers’ expectations.

Our mission is to provide analysis that informs as well as guides users and enthusiasts through the complexities of the cryptocurrency and forex markets. In line with our motto of “quality over quantity”, we guarantee that only the highest quality trading signals are published.

In addition to our commitment, which extends beyond the simple transmission of useful information, our in-depth analysis focuses on profitability and effectiveness squarely, avoiding the common industry habit of prioritizing profit over accuracy. Our traders are strategic experts who offer personalized help to those seeking worthwhile portfolio management tactics.

Diverse knowledge

Our authors are proficient in a variety of topics across the financial spectrum, from emerging trends in blockchain to the nuances of forex trading. This diverse range of knowledge allows the team to cover several topics, ensuring our content is always comprehensive and deeply specialized.

Interactivity and support

We understand that the world of trading can be complex for many. Therefore, alongside producing informative articles, our team is also committed to interacting with the community. Through comment sections, forums and direct support, we encourage our readers to seek clarification and sharpen their understanding, promoting an environment of continuous learning.

Future vision

Looking to the future, the AltSignals writing team is imbued with a vision that transcends regular publishing, and continues to dedicate itself to discovering and reporting on the latest innovations and trends available in the market. We are constantly seeking to improve our skills and expand our knowledge, with the ultimate goal of being a reliable and respected source in digital financial journalism.

There is great commitment to discovering and reporting not only the latest news and trends in the market, but also to equipping our readers with the tools they need to navigate volatile markets with confidence. We firmly believe that, with the support of an appropriate platform coupled with accurate guidance, our readers and traders can turn market volatility into a competitive advantage.

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