Forex Trading
Forex is interesting, as it is extremely available, and it doesn’t include anything but buying and selling foreign currencies. Anyone can do it with ease, but the trick is to do it efficiently, which is where people tend to start struggling.
However, over the last few years, people started mixing it with cryptocurrencies, which actually added a whole new dimension to crypto and Forex trading alike. As the interest in digital currencies surged, many Forex brokers started accepting BTC and offering it as an option for currency trading. But what I was interested in seeing is what are the exact advantages and risks of doing so.
Advantages and Risks
There are plenty of advantages to using cryptocurrencies for trading, such as low fees, great security, and border lessness payments. Cryptos can be sent at any time to any part of the world, and if you use BTC and pay a high enough fee, your payment could be processed in 10 minutes or so.
Furthermore, there is a fairly low minimum deposit of only $25 or so, while BTC traders get access to high leverage. And, let’s not forget that Bitcoin itself is decentralized, so you are not tied to any central bank, geopolitical influences, and similar issues.
With that said, there are certain disadvantages that one should be aware of before jumping into Forex trading with BTC. For example, there are very different exchange rates between BTC exchanges, and they tend to vary a lot. This also leads us to the matter of volatility, which can be huge for BTC. It can go up and down anywhere between a few hundred dollars to $10,000 overnight, which doesn’t exactly make it that reliable.
There is a great risk that comes with leverage, and there are certain security risks that come with BTC, even though security is typically its strength. Lastly, there is an issue of mixing asset classes, which can be unpredictable, as well.
Would you trade Forex with Bitcoin?
