“Bitcoin” by Zach Copley (CC BY-SA 2.0)
In a financial climate where interest rates are not exactly able to provide decent returns, and in a world where volatile markets seem to be everyday news (both the UK and the USA have seen their growth forecast recently cut), the chance to earn a decent return on something that isn’t associated with exceptionally high risks seems to be diminishing.
Some investors obviously look to the stock market as their own personal finance solution, and others are happy to ride out low interest rate periods by just accepting the low savings return and putting their money away for a long time. However, those prepared to take calculated risks have mainly turned to utilizing the world of Bitcoin and the forex market in combination, with the hope of generating a decent return on their investments in the process.
Why Trade Bitcoin?
Bitcoin has endured what can only be described as a degree of doubt as to its future. However, those doubts aside, the cryptocurrency has, in 2017, come to be seen as digital gold, a perception that makes a mockery of some of the main Australian banks deciding to stop allowing Bitcoin trades; after all, just because something is new and different, the market doesn’t need to be instinctively suspicious of it.
Fortunately for Aussie traders, a range of companies can be used for trading Bitcoin on the Forex markets. Bitcoin has recently overcome a minor wobble surrounding the popularity of the world’s first cryptocurrency to be regarded as one of those commodities that you hold onto to defeat economic downturns and still make a profit (or at least try to).
Bitcoins can now be used for a range of purposes like paying for holidays and travel with Expedia, and to place bets with more and more online casinos (a growing trend in iGaming thanks to the better odds passed on to the customer due to lower associated overheads compared to traditional operators). The wider trend seems to be that Bitcoins are becoming easier and easier to spend in the real world, helping to explain why they are becoming more popular around the world, experiencing a boom year in 2016 and spreading in popularity as far and wide as Africa.
“bitcoin accepted here” by Francis Storr (CC BY-SA 2.0)
How To Do It?
Having established that Bitcoins are safe, widely accepted and part of the mainstream economic world, the question is how to use the Forex market to trade them. First of all, the key thing with Forex is to be aware that the market alters significantly based on tiny changes (even down to the fifth or sixth decimal point). So, if there is a big jump in the relative value of Bitcoin versus the US dollar, you can see hefty rewards, although the risk is there on the flipside of losing money too.
With this risk in mind, remember when trading on the Forex market that you should only ever invest what you can afford to lose, and also bear in mind that if you are looking to increase your savings, a diverse portfolio is key. Remember that and your forays into Bitcoin and Forex trading should not only give you a good chance of turning a profit, but should also give you a hefty dose of excitement at the same time!