I have been doing a lot of research into the bitcoin market and comparing it to trading forex via CFD's. I don't think I'll trade forex CFD's ever again. What have I found out about trading bitcoin?
Pro's
- Liquidity just as good as forex.
- Trade long or short with or without leverage.
- Leverage is provided by other market participants. You can loan bitcoin or USD to others. You set the interest rate and term you want. Loan Bitcoin and get paid interest in Bitcoin. Loan USD and get paid interest in USD.
- Tight spreads.
- Fee's start at 0.1% and go down depending on value of trades rolling over 30 days not quantity of trades.
- Markets trade 24*7*365. You can trade on Sunday afternoon if you want.
- No minimum trading amount. I'm trading with US$10 in my account
- The international nature of bitcoin buffers it from economic shocks in any particular country. Bitcoin's price isn't influenced greatly by current account deficits or durable goods orders or manufacturing activity or official interest rates.
Cons
Discouraged by governments
Australian banks actively blocking money transfers to overseas bitcoin exchanges/markets.
I'll post a bit of a review of Australian and international bitcoin sites/companies and exchanges later on.
Unregulated
Local Australian exchanges/markest are illiquid and expensive with horrible spreads
Cumbersome to get money to and from an Australian bank account.
Concerns the site can shutdown over night and take all your money
Can be volatile at times (but no more than currency markets IMO)
- Forums
- ASX - General
- Trading bitcoin vs currencies
Trading bitcoin vs currencies
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