Many people get into Forex trading, aiming to make some great profit. Over time, the forex market expanded, and not too long ago, trading forex with Bitcoin has become an option. If both forex and cryptocurrency attract you, then you may be tempted to get into Bitcoin forex trading.
But before you begin this new journey with a crypto/forex broker, you must learn the pros and cons. Let’s get started!
Benefits of Trading Forex with Bitcoin
Trading forex with Bitcoin certainly has a few benefits. So, if you’re excited to jump into it, here are some things you can expect to get:
- Small Deposit Amount
Perhaps one of the best things about Bitcoin forex trading is the fact that you do not need to break the bank to start trading. In fact, many bitcoin forex trading companies require very low deposits. $25 is often enough for you to begin this new stage of your life.
Obviously, before you get convinced to sign up with a broker due to the small deposit requirement, you should make sure it is regulated.
- Decentralized Option
Did you know that Bitcoin is not controlled by any central bank? What makes Bitcoin so great is the fact that it cannot be negatively affected by interest rates, inflation, or anything of the sort. Therefore, you can enjoy decentralized valuations.
- Very Safe Option
Trading forex with Bitcoin does not require entering any credit card or bank account details. Actually, you can enjoy bitcoin transactions free of any exchange of personal or financial details. If you do not like sharing personal information, this is a huge advantage.
- The Leverage Is High
For the most part, forex brokers offer very high leverage for Bitcoin trades. Basically, leverage can go up to 1:1000 in this case.
- Low Trading Costs
Generally, forex brokers that offer bitcoin trading have very low trading costs. This means you do not need to worry about having to spend too much on the brokerage.
- No Costs for Transactions
Whether you make global transfers or not, forex brokers that offer bitcoin trades usually do not charge any transaction costs. You can save even more money as you go.
Risks of Trading Forex with Bitcoin
Unfortunately, there is also a less pleasant side to trading forex with Bitcoin, respectively:
Bitcoin prices are not secure. Actually, they are extremely volatile. The price may fluctuate, going from higher to lower, and vice-versa.
If a broker is unregulated, it may take advantage of the volatility and use the lowest exchange rate when you make a withdrawal.
- Risk of U.S. Dollar Rate
Many brokers tend to sell Bitcoins and keep the amount in U.S. dollars when clients make deposits. So, from deposit to withdrawal, a lot of clients may deal with the bitcoin-to-U.S. dollar rate risk.
- Many Security Risks
Hackers have tried to steal or hack into Bitcoin deposits many times. Unfortunately, cryptos are prone to this. If the broker does not have insurance protection against theft, it can end badly for you in case of an incident.
Trading forex with Bitcoin can be a good experience if you are careful and know the right steps to take. Still, there are also some downsides to keep in mind. Make sure to choose a regulated broker before you start trading.