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.
