It doesn’t matter if you are a seasoned or a novice planning to invest in Bitcoin or other digital currencies trading for the short or long term. The important thing is to have a clear understanding of how to trade BitCoin online as it is still a new currency that dominates the other cryptocurrencies.
Blockchain technology introduced Bitcoin to the world in August 2008, which was followed by others like Altcoins, Bitcoin Cash, Litecoin, Ethereum, etc. Today, Bitcoin trading against Forex is allowed on many brokerage platforms. ADSS is one of them that offer traders bitcoin trading demo accounts to practice before they start opening positions in the live market. It is an LLC registered company located in Abu Dhabi.
How bitcoin price fluctuates?
- Bitcoin supply is finite, so demand will rise in the following years.
- Negative news associated with bitcoin’s value, longevity, and security will badly impact its market rates.
- When bitcoin gets integrated as a new payment system in the banking framework successfully, its demand will increase and affect its rates positively.
- Security breaches, macroeconomic BTC announcement, and regulation changes can impact the rates.
With no regulation of cryptocurrency, buying is risky because the price fluctuates crazily. For Bitcoin trading, you will need to buy them from sources like crypto exchanges, but experts advise a novice to go long in bitcoin CFDs or bitcoin futures.
How to invest bitcoins in CFDs?
Open an account with CFD broker
Contract or difference or CFDs is a trade between the broker and trader. If traders decide to open a position on BTC’s increasing price, then they need to sign up with a bitcoin CFD broker. The reason to choose invest in CFD is these are regulated contracts held by regulated brokerage platform. If the broker defaults, the financial regulator will compensate the investor to a specific amount.
ADSS is a regulated brokerage firm as they are on the list of the stock exchange and their finances are regulated. You will need to undergo digital ID verification. A deposit via credit card or bank transfers.
Check leverage before diving in
Remember, you are trading bitcoin CFD partnering with a CFD broker, the wager is on BTC’s price. Therefore, be careful! For example, if you go long on bitcoin CFD and your wager succeeds, you will win the same percentage, and if moves against you will lose the same percentage.
However, with leverage, you invest more using borrowed money. If you trade with 100 dirhams on double leverage, it means you own bitcoin of 200 dirhams. If prices increase by 2% your investment escalates by 4% but if it goes against your loss also doubles.
Consider daily charges
Leveraged trading means you borrowed funds from the BTC CFD broker. It means if you hold the position overnight there will be charged a fee. It can be up to 20%. This 20% for a single day holding can build up if you keep it for long, so pay attention to this detail.
At ADSS, you can open a BitCoin demo account for free and get familiar with how this digital currency works. You can even read blogs on their website to understand about trading market in detail. You even have access to ADSS customer service and live price charts.