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Find out what Bitcoin is and how you can benefit from trading it on the Forex platform

Abdelrhman

Find out what Bitcoin is and how you can benefit from trading it on the Forex platform 


Find out what Bitcoin is and how you can benefit from trading it on the Forex platform You will find in this topic .. What is bitcoin? "It might make sense just to get a little bit if that becomes a pioneer." Bitcoin history How Bitcoin is extractedHow Bitcoin is extracted How the Bitcoin exchange system works How to start bitcoin trading, how to start bitcoin trading Bitcoin Risks & Efficiency Features The negatives increase the cost of trading Bitcoin trading with leverage Bitcoin trading strategies Purchase and stick to Weekly timeframe showing BTC / USD exchange rate over several years: What is bitcoin? Bitcoin is a one-for-one (virtual) cryptocurrency, created by Satoshi Nakamoto, who worked on this project alone and released the code to the public in 2009. It disappeared shortly after the creation of the virtual currency, and what remains After him is this 1a notorious quote: "It might make sense just to get a little bit if that becomes a pioneer." Bitcoin is traded in one-for-one network, with all transactions recorded in a public record and that is called a block chain record. If you send 1 bitcoin from your bitcoin address (or wallet) to your friend Ahmed, the bitcoin network records the transaction in the public registry, this means that you have no bitcoin possession. The currency has moved from your Bitcoin wallet to Ahmed's wallet. Bitcoin history In November 2008, an article entitled "Bitcoin: One-for-One Electronic Cash System" was published to an encrypted mailing list under the name Satoshi Nakamoto. This article has discussed ways to use a one-for-one network "electronic transaction system without relying on trust". In January 2009, the Bitcoin network came into existence with the release of the first open source Bitcoin client and the first Bitcoin release, and Satoshi Nakamoto first to extract Bitcoin. In the early days, Mr. Nakamoto was valued at 1 million bitcoin, before he disappeared from any Bitcoin participation. The value of the first Bitcoin transaction was discussed by some people in the 'Bitcointalk' forums and the observed transaction was that 10,000 Bitcoins were used to purchase two pizzas indirectly. The only security barrier that has been found and exploited throughout the history of Bitcoin, on August 6, 2010; Over 184 billion Bitcoins were created in a security breach transaction. Within hours, the deal was spotted and erased. How Bitcoin is extractedHow Bitcoin is extracted Bitcoin extraction is the process by which Bitcoin is released to a trading circuit. This involves solving a mathematically difficult puzzle to discover a new block, which is added to the block chain, in return it receives a reward in the form of a few bitcoins. The more bitcoins are created, the more difficult the bitcoin extraction process becomes - that's all, thus increasing the power of the computers involved in the extraction process. In the past, an ordinary desktop computer was sufficient for Bitcoin extraction, but now to keep pace with the level of difficulty, more advanced and faster computers and processing units must be used. How the Bitcoin exchange system works The simple answer is: just like exchanging regular physical currencies. Basically, you are buying one currency against another. The relative value of a country's physical currency is a reflection of its economy and financial health. For example, you can buy a lot of Mexican pesos for very few US dollars (the dollar is relatively more valuable). Online exchanges such as Mt. Gox acts as currency brokers, and it converts capital from bitcoin to US dollar to other national currencies, and again returns to convert it into dollars or bitcoin. This is how you can earn money. By exploiting the constantly changing values ​​of different currencies, traders can benefit from moving money around these markets, in a process known as arbitrage. But they can lose it just as easily. How to start bitcoin trading, how to start bitcoin trading Bitcoin CFDs are magic that allows you to trade bitcoin without using bitcoin. It was originally created for the purpose of obtaining exposure to Bitcoin without actually having to own it. (CFD) is a contract for difference and it is a contract between the trader and the broker. These contracts announce that the difference between the entry price of the trader in the contract and the exit price of the contract is either the profit or loss for the trader, basically simulating as if it was a real financial instrument (i.e. bitcoin) and was actually owned by the trader. Bitcoin Risks & Efficiency Features When trading financial assets, there is always concern about how to check or do your trades. Bitcoin trading with iFOREX eliminates this concern with the easy-to-use trading platform. It is even more efficient if you are doing more than Bitcoin trading, because then you can manage all of your trades in one place. For example, you can trade Bitcoin in addition to doing a CFD deal for a particular currency or stock at a time, which is a very effective way to invest. Leverage To buy one full bitcoin, you must pay the full amount for one bitcoin. When trading Bitcoin with iFOREX, you can enjoy the leverage available when trading in the Forex market. With leverage, you only need to use a small portion of the entire transaction value and you will not need the entire amount as a physical Bitcoin trader. Therefore, you can trade more Bitcoins than Bitcoins on the Bitcoin Exchange. The negatives increase the cost of trading Trading Bitcoin CFDs will add a spread or commission, but this is the same as every currency exchange whether it is online or actually at exchange offices. Bitcoin price spreads may be slightly higher in addition to other fees such as those charged with overnight financing. All of these can accumulate over time, making trading more expensive, although only with a small margin. Absence of an option to choose a Bitcoin exchange When trading Bitcoin directly and effectively, you can choose which exchange you want to use. There are hundreds of specialized exchanges in bitcoin all over the world, and the value of bitcoin in it varies slightly from one to the other. Trading through a broker such as iFOREX company, you only have to accept the price offered, but you will enjoy the stability and confidence that we offer as well. Bitcoin trading with leverage Before we go any further, a caution alert: Bitcoin prices are very volatile. Prices have increased 5-fold in a year, and lost 80% of their value in one month. Unlike the major foreign currency pairs that hardly move 1% daily, bitcoin prices can rise or fall more than 30% in a single day. Bitcoin trading with iFOREX allows you to maximize your initial deposit by up to 10 times greater, which allows you to get more exposure to the market but does not risk more than you can afford. Bitcoin trading strategies Purchase and stick to Traders who buy and hold are supportive and have a longer viewpoint, often referred to as "stickers" in the bitcoin community. They look at the price of bitcoin in terms of monthly, weekly and sometimes daily charts. They expect Bitcoin to become very valuable in the future. There is some justification for this view, due to Bitcoin's superior cash benefit, limited supply and inherent advantages over regular currencies. Adherents tend to base their actions more on fundamental analysis than technical analysis, meaning that adherents act on their assessment of the economic potential of bitcoin instead of graph patterns and the like. Holders are sensitive to daily price fluctuations. Some holders are not gradual even from extreme price movements, especially those who have seen several bubbles during Bitcoin history. Holders tend to see prices crash / fall as an opportunity to get more coins at a low price. They may reap profits if they believe the price has reached an unsustainable peak, although it is unlikely that it will fully liquidate their positions. Weekly timeframe showing BTC / USD exchange rate over several years: A swinging trader usually holds a position for several days up to several months. Their strategy is to trade large price movements between two extreme points. When the price does not follow a strong bullish trend (often called "revolutionary") or a strong downtrend (often called "Dubai"), it tends to range between the highest and lowest price. These are levels where buyers or sellers reliably enter the market in terms of volume, which reverses the price trend. Bitcoin price may remain within these levels for long periods, as it did in most of 2015 when it ranged between low levels of $ 200 and $ 300. Dollars. When the price of bitcoin reaches a potential reversal level, swing traders will bet on price reversal, especially when indicators confirm the possibility of a change in direction. If the price continues instead of a reversal, then this is a clear signal to exit the trade in the slightest loss. Swinging trading is a strategy that works very well with CFDs. The time frame is a good fit and greater price movements will adequately offset the spread and the cost. Also note that the profit taking limit and the stop loss loss are available when buying or selling through iFOREX, and can be used to obtain a significant impact when undertaking such deals. As they say, "This trend is your friend, until it ends." And target traders according to the trend to enter for a long time up or down and ride the wave until it is exhausted. Unlike swinging traders, trend-oriented traders often don't have a predetermined target in place. This is especially true when the price reaches new highs, as did Bitcoin from early to late November of 2013, when it moved from $ 250 to more than $ 1,000 per Bitcoin one. Determining the trend in the market is an art form, because the formation of trends is unclear in the early stages. A clear indication of the emerging trend is that the price is constantly achieving highs or lows to the lowest level. The breach of some previously important levels confirms this trend. Trends are gaining momentum as market participants are "like a herd". If this trend is particularly strong, then it is soon noticed by the financial media, which is directing more people to participate in this trend. The best traders by trend are those who enter as quickly as possible and exit before the trend reverses. Trying to pick peaks and bottoms is a foolish task but - better to wait for trend confirmation by indicators to gauge momentum, and make profit sooner rather than later. Like swing trading, trend trading is a good fit for CFDs. Although waves / trends are present in all time frames, when trading CFDs it is best to look for large moves over the longer time frames; Multiple days, weekly or monthly. Traders during day hours keep deals only as long as they are "in service" - usually 12 to 16 hours but sometimes for a longer period of time. In the Bitcoin trading charts, you will often see traders during the day hours grumbling about the lack of sleep because they are observing a certain deal that they cannot afford to close. Traders may trade fluctuations and / or trends throughout the day and some of them will participate in the scalping process (covered below). Traders during day hours are likely to track charts of one hour or parts of an hour, sometimes indicating higher time frames. This trading pattern is best for those who want to make Bitcoin trading their main job. Traders during the day are getting along well with CFDs, except in times of low volatility when price movements are simple. Scalping traders try to exploit the profit from the movements minute by minute, and they often use imbalances in the book to reap many simple profits. They tend to use charts of 5 minutes or less. This method is not quite suitable for CFDs due to spread on them, which makes trading fees higher than expected return.

You will find in this topic ..

  1. What is bitcoin? 
  2. "It might make sense just to get a little bit if that becomes a pioneer."
  3. Bitcoin history
  4. How Bitcoin is extractedHow Bitcoin is extracted 
  5. How the Bitcoin exchange system works
  6. How to start bitcoin trading, how to start bitcoin trading
  7. Bitcoin Risks & Efficiency Features
  8. The negatives increase the cost of trading
  9. Bitcoin trading with leverage
  10. Bitcoin trading strategies Purchase and stick to
  11. Weekly timeframe showing BTC / USD exchange rate over several years:

What is bitcoin? 

  • Bitcoin is a one-for-one (virtual) cryptocurrency, created by Satoshi Nakamoto, who worked on this project alone and released the code to the public in 2009. It disappeared shortly after the creation of the virtual currency, and what remains After him is this 1a notorious quote: 

"It might make sense just to get a little bit if that becomes a pioneer." 

  • Bitcoin is traded in one-for-one network, with all transactions recorded in a public record and that is called a block chain record. If you send 1 bitcoin from your bitcoin address (or wallet) to your friend Ahmed, the bitcoin network records the transaction in the public registry, this means that you have no bitcoin possession. The currency has moved from your Bitcoin wallet to Ahmed's wallet. 

Bitcoin history 

  • In November 2008, an article entitled "Bitcoin: One-for-One Electronic Cash System" was published to an encrypted mailing list under the name Satoshi Nakamoto. This article has discussed ways to use a one-for-one network "electronic transaction system without relying on trust". In January 2009, the Bitcoin network came into existence with the release of the first open source Bitcoin client and the first Bitcoin release, and Satoshi Nakamoto first to extract Bitcoin. 

  • In the early days, Mr. Nakamoto was valued at 1 million bitcoin, before he disappeared from any Bitcoin participation. 

  • The value of the first Bitcoin transaction was discussed by some people in the 'Bitcointalk' forums and the observed transaction was that 10,000 Bitcoins were used to purchase two pizzas indirectly. 

  • The only security barrier that has been found and exploited throughout the history of Bitcoin, on August 6, 2010; Over 184 billion Bitcoins were created in a security breach transaction. Within hours, the deal was spotted and erased. 

How Bitcoin is extractedHow Bitcoin is extracted 

  • Bitcoin extraction is the process by which Bitcoin is released to a trading circuit. This involves solving a mathematically difficult puzzle to discover a new block, which is added to the block chain, in return it receives a reward in the form of a few bitcoins. The more bitcoins are created, the more difficult the bitcoin extraction process becomes - that's all, thus increasing the power of the computers involved in the extraction process. In the past, an ordinary desktop computer was sufficient for Bitcoin extraction, but now to keep pace with the level of difficulty, more advanced and faster computers and processing units must be used. 

How the Bitcoin exchange system works 

  • The simple answer is: just like exchanging regular physical currencies. Basically, you are buying one currency against another. The relative value of a country's physical currency is a reflection of its economy and financial health. For example, you can buy a lot of Mexican pesos for very few US dollars (the dollar is relatively more valuable). Online exchanges such as Mt. Gox acts as currency brokers, and it converts capital from bitcoin to US dollar to other national currencies, and again returns to convert it into dollars or bitcoin. This is how you can earn money. By exploiting the constantly changing values ​​of different currencies, traders can benefit from moving money around these markets, in a process known as arbitrage. But they can lose it just as easily.

How to start bitcoin trading, how to start bitcoin trading 

  • Bitcoin CFDs are magic that allows you to trade bitcoin without using bitcoin. It was originally created for the purpose of obtaining exposure to Bitcoin without actually having to own it. 

  • (CFD) is a contract for difference and it is a contract between the trader and the broker. These contracts announce that the difference between the entry price of the trader in the contract and the exit price of the contract is either the profit or loss for the trader, basically simulating as if it was a real financial instrument (i.e. bitcoin) and was actually owned by the trader. 

Bitcoin Risks & Efficiency Features 

  • When trading financial assets, there is always concern about how to check or do your trades. Bitcoin trading with iFOREX eliminates this concern with the easy-to-use trading platform. It is even more efficient if you are doing more than Bitcoin trading, because then you can manage all of your trades in one place. For example, you can trade Bitcoin in addition to doing a CFD deal for a particular currency or stock at a time, which is a very effective way to invest. 
Leverage 
  • To buy one full bitcoin, you must pay the full amount for one bitcoin. When trading Bitcoin with iFOREX, you can enjoy the leverage available when trading in the Forex market. With leverage, you only need to use a small portion of the entire transaction value and you will not need the entire amount as a physical Bitcoin trader. Therefore, you can trade more Bitcoins than Bitcoins on the Bitcoin Exchange. 

The negatives increase the cost of trading 

  1. Trading Bitcoin CFDs will add a spread or commission, but this is the same as every currency exchange whether it is online or actually at exchange offices. 
  2. Bitcoin price spreads may be slightly higher in addition to other fees such as those charged with overnight financing. All of these can accumulate over time, making trading more expensive, although only with a small margin. 
  3. Absence of an option to choose a Bitcoin exchange 
  4. When trading Bitcoin directly and effectively, you can choose which exchange you want to use. There are hundreds of specialized exchanges in bitcoin all over the world, and the value of bitcoin in it varies slightly from one to the other. Trading through a broker such as iFOREX company, you only have to accept the price offered, but you will enjoy the stability and confidence that we offer as well. 

Bitcoin trading with leverage 

  • Before we go any further, a caution alert: Bitcoin prices are very volatile. Prices have increased 5-fold in a year, and lost 80% of their value in one month. Unlike the major foreign currency pairs that hardly move 1% daily, bitcoin prices can rise or fall more than 30% in a single day. 

  • Bitcoin trading with iFOREX allows you to maximize your initial deposit by up to 10 times greater, which allows you to get more exposure to the market but does not risk more than you can afford. 

Bitcoin trading strategies Purchase and stick to 

  • Traders who buy and hold are supportive and have a longer viewpoint, often referred to as "stickers" in the bitcoin community. They look at the price of bitcoin in terms of monthly, weekly and sometimes daily charts. They expect Bitcoin to become very valuable in the future. 

  • There is some justification for this view, due to Bitcoin's superior cash benefit, limited supply and inherent advantages over regular currencies. Adherents tend to base their actions more on fundamental analysis than technical analysis, meaning that adherents act on their assessment of the economic potential of bitcoin instead of graph patterns and the like. 

  • Holders are sensitive to daily price fluctuations. Some holders are not gradual even from extreme price movements, especially those who have seen several bubbles during Bitcoin history. Holders tend to see prices crash / fall as an opportunity to get more coins at a low price. They may reap profits if they believe the price has reached an unsustainable peak, although it is unlikely that it will fully liquidate their positions. 

Weekly timeframe showing BTC / USD exchange rate over several years: 

  • A swinging trader usually holds a position for several days up to several months. Their strategy is to trade large price movements between two extreme points. When the price does not follow a strong bullish trend (often called "revolutionary") or a strong downtrend (often called "Dubai"), it tends to range between the highest and lowest price. These are levels where buyers or sellers reliably enter the market in terms of volume, which reverses the price trend. Bitcoin price may remain within these levels for long periods, as it did in most of 2015 when it ranged between low levels of $ 200 and $ 300. Dollars. 

  • When the price of bitcoin reaches a potential reversal level, swing traders will bet on price reversal, especially when indicators confirm the possibility of a change in direction. If the price continues instead of a reversal, then this is a clear signal to exit the trade in the slightest loss. 

  • Swinging trading is a strategy that works very well with CFDs. The time frame is a good fit and greater price movements will adequately offset the spread and the cost. Also note that the profit taking limit and the stop loss loss are available when buying or selling through iFOREX, and can be used to obtain a significant impact when undertaking such deals. 

  • As they say, "This trend is your friend, until it ends." And target traders according to the trend to enter for a long time up or down and ride the wave until it is exhausted. Unlike swinging traders, trend-oriented traders often don't have a predetermined target in place. This is especially true when the price reaches new highs, as did Bitcoin from early to late November of 2013, when it moved from $ 250 to more than $ 1,000 per Bitcoin one. 

  • Determining the trend in the market is an art form, because the formation of trends is unclear in the early stages. A clear indication of the emerging trend is that the price is constantly achieving highs or lows to the lowest level. The breach of some previously important levels confirms this trend. Trends are gaining momentum as market participants are "like a herd". If this trend is particularly strong, then it is soon noticed by the financial media, which is directing more people to participate in this trend. 

  • The best traders by trend are those who enter as quickly as possible and exit before the trend reverses. Trying to pick peaks and bottoms is a foolish task but - better to wait for trend confirmation by indicators to gauge momentum, and make profit sooner rather than later. 

  • Like swing trading, trend trading is a good fit for CFDs. Although waves / trends are present in all time frames, when trading CFDs it is best to look for large moves over the longer time frames; Multiple days, weekly or monthly. 


  • Traders during day hours keep deals only as long as they are "in service" - usually 12 to 16 hours but sometimes for a longer period of time. In the Bitcoin trading charts, you will often see traders during the day hours grumbling about the lack of sleep because they are observing a certain deal that they cannot afford to close. Traders may trade fluctuations and / or trends throughout the day and some of them will participate in the scalping process (covered below). 

  • Traders during day hours are likely to track charts of one hour or parts of an hour, sometimes indicating higher time frames. This trading pattern is best for those who want to make Bitcoin trading their main job. Traders during the day are getting along well with CFDs, except in times of low volatility when price movements are simple. 

  • Scalping traders try to exploit the profit from the movements minute by minute, and they often use imbalances in the book to reap many simple profits. They tend to use charts of 5 minutes or less. This method is not quite suitable for CFDs due to spread on them, which makes trading fees higher than expected return. 







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