How Safe is Bitcoin Trading? Is Bitcoin Legit?

Kelly Yeung

ATFX.com Representative
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In 2009, a virtual currency known as "Bitcoin" was created that changed the very foundations of what it means to trade currencies. The digital currency became extremely popular and launched the cryptocurrency sector as it is now known globally. Bitcoin is traded like any other fiat currencies, where traders can exchange/trade it for another currency to make profits.

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Just like any other financial commodity, Bitcoin and other cryptocurrencies have many advantages and disadvantages. Here are some advantages of trading Bitcoin: It can be traded throughout the week, unlike fiat currencies, and does not depend on the bank payment systems. As a result, paying with Bitcoin is faster and cheaper than bank transactions. In addition, Bitcoin can buy many tangible goods such as mobile phones and computers, as more merchants start accepting the leading digital currency. Another advantage is that there is no central authority that governs Bitcoin.

Disadvantages of using Bitcoin
Bitcoin also has some drawbacks, such as It cannot be used without an internet connection. It is not convenient to buy cheap everyday products such as tea and other household goods because of the associated costs. Converting Bitcoin to fiat currency is expensive, and merchants’ acceptance levels are much lower than fiat currencies. Bitcoin prices are pretty volatile, which could see the value of your Bitcoin fluctuate daily. Are you now wondering how and where you can get bitcoin?

To buy a cryptocurrency such as Bitcoin, you must first open an account with a digital currency exchange and deposit some fiat currency, which you can then use to purchase Bitcoin.

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Most exchanges allow their users to buy Bitcoin from each other in what is known as peer-to-peer transactions. You can buy your Bitcoin using fiat currencies by depositing funds into the exchange via credit/debit card as well as bank transfers. You can also exchange other digital currencies for Bitcoin.

A popular way to benefit from Bitcoin’s price swings without owning any Bitcoin is to trade contracts for differences (CFDs) via a Forex broker.

Is trading and using bitcoin legal or not?
Each country has different rules about Bitcoin, but many countries allow their citizens to own and exchange cryptocurrencies. However, some countries restrict the buying, selling and ownership of digital currency, such as Russia and Argentina. Other countries like Thailand require their citizens to obtain licenses to own and exchange virtual currencies.

Most governments led by the United States have singled out cryptocurrencies such as Bitcoin as being used for criminal activities. As a result, some countries are creating a central bank digital currency (CBDC) similar to their official currencies. The CBDC’s shall be issued and regulated by the respective country’s central bank.

Always check the regulations in your country before buying or selling digital currencies, as each country has its laws.

To start trading bitcoin, you must follow these steps:
  1. First, you must open a trading account with a financial brokerage.
  2. Create a trading plan with an edge.
  3. Define your trading goals.
  4. Be aware of all the latest news affecting Bitcoin.
  5. Study and analyse Bitcoin price charts.
  6. Identify high probability trade opportunities.
By following the above steps, understanding the advantages and disadvantages of trading Bitcoin, and choosing a reliable broker to facilitate your trading, you can stack the odds of success in your favour.

Set up a Metatrader 4 account or Demo Account to kick start your trading journey now!

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