Bitcoin Forex Brokers – Best Legal Brokers Accepting Bitcoin Deposits
Bitcoin Forex Brokers – Best Legal Brokers Accepting Bitcoin Deposits
Have you ever thought about all the uses of currency exchange? Well, starting from international organizations, entire corporations and governments and even private individuals who want to go abroad, everyone has tried it at least once. The stock market offers this type of exchange and investments, among many others. However, the rise of technology has made it available in the comfort of our homes.
Forex trading is a representation of the online market for currency exchange and trade. It combines most of the world’s currencies according to the countries where it is used, as well as their value. Here, people can track the value change of their preferred currency and either profit or lose money according to their next investment. These moves tend to revolve around the rise or fall of the currency’s value while traders try to guess the final result.
Ultimately, after the trade is closed (each trading activity is limited to a certain period), one can determine whether or not their prediction came true. Some currency values change less than others which makes it easier for traders to see whether they have profited or lost before the trade closes.
Based on individual experience, most people would say that Forex is a completely legal foreign exchange practice. Still, there are many countries which haven’t yet legalized Forex trading for their citizens. The fear of money laundering and corruption pushes them further away from this market and even isolates their people from risky, but profitable investment opportunities. On the other hand, citizens from countries which have a more liberal approach can enjoy all the benefits from this type of trade.
Some of the latest tech innovations found a replacement for our real-life, fiat currencies. These are known as digital or cryptocurrencies. Throughout the years, developers created several digital currencies. One of those which managed to fight their way to the top is Bitcoin. Dating back almost a decade ago since it was released on August 18th, 2008, bitcoins fought their way to all the major online markets, including Forex trading.
Frequently Asked Questions
Forex trading has largely popularized and expanded in the past couple of years, as more and more countries are trying to include their citizens in the global traders’ community. Bitcoins and their unique characteristics had caused a lot of changes in the currency exchange rates and general confusion when the currency appeared for the first time. In this line of thought, we have provided you with the answers to some of the most common problems which trouble current and potential traders.
How do you determine the value of bitcoins?
That is a pretty fair but also unusual question, just like the currency. Namely, most people understand the value of their currency in relation to a certain commodity, oil or gold in most situations. However, this cryptocurrency is not placed in relation to anything existing in the real world. As a matter of fact, its volatility tends to be one of the greatest obstacles which prevent it from expanding even more.
The main problem is the fact that bitcoins don’t exist in real life. Of course, you can most certainly keep 3 or 4 bitcoins in your e-wallet, but those are actually just strings of code, with no actual dimensions. This makes it difficult for people to understand it and use it completely.
What is the current value of one bitcoin?
It’s important to mention that, when it first appeared, it took over a thousand bitcoins in order to buy a single US dollar. Nowadays, despite constant shifts in the exchange rate, one can safely say that the value of a single bitcoin is over a thousand US dollars.
Which are the most influential factors which determine the bitcoin’s value?
Supply and demand determine the price of all products on the market, including this one. Bitcoins have a limited supply and a constant rise in demand which is why the price of bitcoins has no other way to go but up. Moreover, it’s important to state that even though the currency is independent, banks tend to use it in order to keep operations going in situations when their assets are frozen and they cannot perform regular transactions. The value of bitcoins can also be increased by the inflation of a real-life fiat currency. However, every time a country places an official ban on bitcoins, their value decreases.
How are bitcoin operations regulated?
There is no central regulatory body which takes care of all bitcoin operations. This has been the original idea since the creation of bitcoins. The bitcoin transfers use a simple peer-to-peer system which allows any two people from any parts of the world (where bitcoins are legal) to trade among them.
This decentralized approach makes the transfer process even easier because there is no middle organization which usually needs more time to process the transfer and charges a certain fee for doing that.
What leverage do Forex brokers offer to bitcoin trades?
Forex brokers are offering pretty high leverage for bitcoin trading. However, you need to be extremely careful when you decide to use it. The high margins may increase your profits, but they are also able to increase your losses and leave you in huge debts.
Do I have to pay any fees for bitcoin Forex transactions?
Bitcoin transactions aren’t completely free, despite popular beliefs. More precisely, they are regulated by the value of the bitcoins which are transferred. Just for the record, the fee’s exact amount is set at 0.0001 bitcoin which goes to the Forex brokers.
If there is no central regulatory body, then how is security handled?
This system is very well built in order to enable bitcoin owners to track their own currency and receive information about the bitcoins’ previous e-wallets. This is done with a certain technology which is invented for bitcoins and it is known as blockchain. The first part of the word ‘block’ refers to each mined bitcoin, i.e. a bitcoin that has been sent, encrypted, deciphered and established with a unique ‘hash’ which is basically its signature (a string of letters and numbers). After that, this is constructed into a single block. As these blocks link to one another, they create the whole blockchain.
Additionally, there might not be a central institution, but there is a group of extremely knowledgeable developers which maintain, monitor and improve the overall bitcoin system.
What are the greatest risks for Forex traders using bitcoins?
When it comes to Forex trading, there is always some dose of risk involved. Real-life, fiat currencies are normally kept under control in order to maintain economic stability on a global level, while digital currencies do not receive the same treatment. This is why bitcoins are known to shift their value to extremes. Fortunately, recent developments have been able to maintain a steady rise in its value.
How do I get a bitcoin?
You can either buy bitcoins from bitcoin exchange services, or you can mine them. Either way, you have to sacrifice a big part of your money or your time. It’s important to know that bitcoins are not infinite, in case you plan to delay this purchase any longer. The system’s limit is set at exactly 21 million bitcoins and it is estimated that these can be created a century from now.
Where should I keep my bitcoins?
The matter of storage is a great risk for all bitcoin owners. Considering that bitcoins are digital currencies, they need to be kept in an e-wallet, which is a type of storage service which allows bitcoin transfers. While some choose to keep their bitcoins in a downloadable software, others are worried about any hardware damages or accidents and prefer cloud storage. The increased number of hacking attacks has force Forex traders to come up with a third solution known as bitcoin exchanges or “cold storage”. In this case, over 90% of all bitcoins are offline, with just a small percentage left online for emergency withdrawals.
Bitcoin Forex Trading – Legal or Not?
There are many factors which need to be reviewed in order to determine whether or not bitcoin Forex practices are legal or not.
Primarily, various countries have their own opinion on the matter. Most Western European countries for instance, have completely legalized Forex and allow their citizens to speculate on the foreign exchange market for a profit. Others are more reluctant when it comes to changes and innovations, which is why they tend to maintain their rigorous anti-money laundering policies. Ultimately, these actions are more harmful for these countries than they are for the liberal ones.
On the other hand, bitcoins managed to shake the world of finance even though they have even less regulations than Forex. Once this is fixed, bitcoin Forex is definitely going to expand even more.
Kate is our resident cryptocurrency expert, she will be guiding you through the rise of new digital coins as well as providing insights of what's to come and what to avoid going forward..
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Have you ever thought about all the uses of currency exchange? Well, starting from international organizations, entire corporations and governments and even private individuals who want to go abroad, everyone has tried it at least once. The stock market offers this type of exchange and investments, among many others. However, the rise of technology has made it available in the comfort of our homes.
