Bitcoin
BTC$64 567.36

-0.38%

Ethereum
ETH$3 417.53

-0.97%

Tether
USDT$1.000110

-0.03%

Binance Coin
BNB$572.36

-0.70%

Solana
SOL$156.80

-2.13%

XRP
XRP$0.628046

7.62%

Pros and cons of trading Forex with Bitcoin


April 2021

Cryptocurrencies are gaining popularity again. It’s the perfect opportunity to use them for your trading portfolio, especially the ever-popular Bitcoin. Here's a short memo that contains everything a beginner needs to know: what is it, why is it, how do you approach it.

What a time to be a crypto trader. Bitcoin is going through its second renaissance, smashing all the price heights and growing strong. In case you have never traded crypto before, here’s a list of pros and cons.

But first, a little introduction to Bitcoin. Bitcoin (BTC, XBT) is a cryptocurrency that is not controlled by any bank or government and can be transferred from user to user without any third parties through a blockchain system.

Pros

You don’t have to buy Bitcoin using crypto exchanges and setting crypto wallets. Like any other currency, Bitcoin is a trading asset you can easily find on most trading platforms. Most often you will find the BTCUSD pair. Liquidity of the asset secures constant transactions. Some people buy Bitcoin, some people sell it, price changes - that’s how you get your profit. 

High returns are no surprise for experienced crypto traders. Bitcoin tends to have incredible and sudden price growth, making its owners rich within a short period. 

Bitcoin is not infinite. Its emission stops after the 21,000,000th Bitcoin is mined. Since that moment, all the transactions will include existing Bitcoins, making it similar to Gold and other finite commodities. It means that with time if there is a demand for Bitcoin, its value might skyrocket.

Cons

Bitcoin is not regulated. Much like any anarchists’ dream, Bitcoin belongs to everyone and no one. It makes this asset unpredictable and less stable than your usual assets of choice. Volatility can bring you high returns, but that also means that the price can change not in your favour.

The most significant risk of Bitcoin is that it becomes irrelevant. Right now, it can offer advantages no other payment method can, but it can be temporary. Once there is an alternative that offers as much as Bitcoin and more, there might be a rapid fall in price. Then, fall in demand, liquidity, and, eventually, Bitcoin will become irrelevant to the market.

In case you physically own any amount of Bitcoin, you can’t cancel the transaction once it’s made. It means that in case you transfer your funds by mistake or to some fraudulent source, you won’t get them back. Overall, Bitcoin can become both the strongest asset in your portfolio, as well as its weakest link. If you want to trade crypto, get ready to: 

Learn more about altcoins and monitor them. Ethereum, Ripple, Dash - that’s just a few examples of equally popular cryptocurrencies that tend to be affected by Bitcoin price movement.

Once you get to the forums and websites dedicated to Bitcoin and crypto trading you will see a lot of words and abbreviations you might not know, so here’s just a few for you to start with: 

To the moon! - a war-cry of crypto traders once their currency skyrockets in price. To the moon, Bitcoin! Now you are ready to trade crypto in case you got interested in it. Don’t forget to do your research, monitor the market, and HODL out for new opportunities.

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 77.6% 43 $64 567.36 -0.38% 12.55% $1 273 722 979 629 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 72% 50 $3 417.53 -0.97% 10.31% $410 859 870 677 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 93.6% 1 $1.000110 -0.03% 0.02% $113 236 960 423 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 78% 43 $572.36 -0.70% 9.35% $84 470 480 429 BNB 7 days price change
5 Solana (SOL) SOL Solana predictions 81.6% 36 $156.80 -2.13% 11.26% $72 781 603 483 SOL 7 days price change
6 XRP (XRP) XRP XRP predictions 78% 43 $0.628046 7.62% 43.35% $35 048 347 743 XRP 7 days price change
7 USD Coin (USDC) USDC USD Coin predictions 92% 1 $1.000063 0.01% 0.01% $33 802 025 670 USDC 7 days price change
8 Toncoin (TON) TON Toncoin predictions 86.4% 13 $7.16 -2.83% -1.25% $17 979 891 294 TON 7 days price change
9 Dogecoin (DOGE) DOGE Dogecoin predictions 73.2% 55 $0.123284 -1.89% 14.54% $17 895 498 284 DOGE 7 days price change
10 Cardano (ADA) ADA Cardano predictions 77.6% 36 $0.442834 0.57% 15.09% $15 892 288 247 ADA 7 days price change
11 TRON (TRX) TRX TRON predictions 77.6% 44 $0.134153 0.33% 2.31% $11 685 315 797 TRX 7 days price change
12 SHIBA INU (SHIB) SHIB SHIBA INU predictions 79.2% 37 $0.000019 -3.26% 15.07% $11 069 963 486 SHIB 7 days price change
13 Avalanche (AVAX) AVAX Avalanche predictions 75.2% 41 $27.86 -1.26% 7.00% $10 997 136 424 AVAX 7 days price change
14 Lido stETH (STETH) STETH Lido stETH predictions 96% 1 $2 941.39 -0.40% -3.32% $10 258 752 564 STETH 7 days price change
15 Wrapped TRON (WTRX) WTRX Wrapped TRON predictions 94% 1 $0.116354 -0.46% 0.23% $10 171 995 609 WTRX 7 days price change

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