Apart from binary options, forex trading with bitcoins is one of the distinct features offered by cryptocurrency-based and Bitcoin-specific platforms. The processes involved in this option are different from traditional forex brokers, but rather resembles binary options trading. Additional profit awaits players who make correct predictions on the movements of currency rates.
Bitcoin forex simplified the processes of forex trading by applying a number of binary options’ characteristics to its operations. Investors are required to follow four straightforward steps to complete a trade. These involve the following actions:
Foreign exchange trading focuses its assets on fiat currencies and two commodities, hence, only the aforementioned assets are present in this option. There are 18 available currency pairs for traders to select from, and one commodity pair, this includes the popular JPY, EUR, GBP, and USD. In addition to the currency pairs, two commodities are available, which are gold and silver. Investors are to pick one asset that they believe will match the bearing of their prediction.
Leveraged underlying asset
Traders have the option to choose the trading leverage, which is a ratio of the transaction size of the actual investment used for margin. This allows clients to trade without putting up the full amount, which directly influences the stop loss and take profit. Indeed, learning how to trade Bitcoin forex is uncomplicated—just like present trading portals and even the Club Gold Casino mobile platform—for both first-time and experienced users.
Stop loss and take profit
- Stop loss
This pertains to an order placed to sell a security upon reaching a certain price. A stop-loss order’s purpose is to limit a trader’s loss on a position in a security.
- Take profit
A take profit order locks in profits in the event of a currency moving in an upward direction. It is used by traders specifying the precise rate or number of pips from the current price point where to close out their current position to earn revenue.
Furthermore, PIP or percentage in profit moves according to the numbers specified in the stop loss and take profit. This value measures the amount of change in the exchange rate of a currency pair. In the case of Bitcoin-powered platforms, the value are represented using the Bitcoin currency.
You can set a take profit amount that stands for your maximum profit for the specific investment, or a stop loss amount indicating the maximum loss you are willing to risk.
Upon choosing a preferred leverage, investment amount desired, and if you have decided whether to buy or sell the currency pair, the final step is to approve the trade. Before the confirmation, a text box provided will display the following values to ensure that all fields match, this includes the asset, take profit rate, spread rate, investment, payout, and stop loss rate.
CFD (Contract for Difference)
CFD is placed under forex; this option differs only in the assets put into action. Nevertheless, the process of trading is similar to that of foreign exchange.