Trading Bitcoin at forex brokers

Bitcoin logo

The digital currency Bitcoin has undoubtedly left its experimental stage, and is now a widely recognized method of payment. Where before it was only possible to use the currency to pay for things in a select amount of online stores, now more and more brick-and-mortar stores, bars and other establishments are accepting bitcoins. In August 2013, Germany even became the first country to acknowledge Bitcoin as a 'financial instrument'.

As a serious currency, Bitcoin of course has an exchange rate too. The huge value increase of bitcoins has made headlines regularly. As a result, several forex brokers now offer you the opportunity to trade in currency pairs that include Bitcoin.

Later on in this article, we'll tell you more about trading Bitcoin at forex brokers like eToro and Plus500, but first we quickly have to answer an important question.

What is Bitcoin?

Bitcoin is a completely digital currency, which was created in 2008 by a person using the pseudonym "Satoshi Nakamoto". Contrary to other currencies, Bitcoin is not controlled by one particular nation. In other words, it is a decentralized currency, which is rather unique.

Just like other currencies, the Bitcoin can be used to buy things, if of course the store you are buying at accepts the currency. Transactions are made via peer-to-peer networks. This way, every bitcoin used in a payment passes multiple computers of other users, that confirm through an automated process that this particular bitcoin has not been used before.

So paying with bitcoins is as safe as it gets, and requires no special skills from its users.

Where can I buy Bitcoin?

If you like the idea of Bitcoin, and you actually would like to buy some of this currency, there are enough websites to go to.

There are several Bitcoin exchanges online, where both individuals and businesses can trade bitcoins with each other. You can buy and sell bitcoins in different currencies, and besides this you can make use of a personal safe to store your bitcoins in.

Buying bitcoins is useful if you actually plan to use them to pay for things. But if you'd rather speculate on the Bitcoin exchange rate, you'll have to go to a forex broker.

Trading in Bitcoin

If you want to trade in Bitcoin, an account at a forex broker is basically all you need. Through such an account you can speculate at the exchange market by opening positions on currency pairs. For details on how this can be done, please have a look at this guide.

Bitcoin is one of the most interesting currencies to trade, because there is no other currency which undergoes such drastic changes. In 2013, the value of 1 BTC (Bitcoin) went from $13 up to $220, down to $70, only to climb all the way up to $1,300, before dropping below $800 again... Obviously, this is a dream scenario for traders, because if you buy or sell Bitcoin at the right moment, there are clearly some enormous profits to be made.

Plus500 is one popular forex broker that also offers the opportunity to speculate on the Bitcoin exchange rate. Here the currency pair BTC/USD is offered.
This means that you can predict if the value of the Bitcoin relative to the US dollar will go up (in this case you buy this pair) or down (in this case you sell this pair).

In the Plus500 trading software, you can find the currency pair BTC/USD under Forex->Minors. It will appear in the middle of your screen in a list of other currency pairs, as can be seen on the screenshot below.

Plus 500 Bitcoin

By the way, you can trade in Bitcoin pairs with reduced risk at Plus500. New members are eligible for a €25 welcome credit to trade with. All it takes to get this bonus money, is verifying your phone number.

Click here to trade Bitcoin at Plus500 »

Keep in mind that your capital may be at risk.

There is one other top forex broker where you can currently trade Bitcoin, and that's eToro. As you can read in our eToro review, this broker also offers many social features that give you extra opportunities to earn money with currency trading. So if you're interested in trading Bitcoin, we definitely recommend you take a look at eToro as well.

Click here to trade Bitcoin at eToro »

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