Bitcoin is continuing it’s meteoric rise. Are you looking to get in on the action and start trading this exciting digital currency? Well I’ve put together some of the different tools that are out there for investing, trading and hopefully making money from Bitcoin.
Trading bitcoin is high risk – it’s an extremely volatile currency. But talented traders are able to take advantage of this volatility to make larger gains compared to more traditional investments.
This site is really useful for keeping track of your bitcoin portfolio. You input how much you paid for the coin, and you’ll be able to see what your gain or loss is over time. It doesn’t just support Bitcoin either, you can input all sorts of other digital currencies, including Ethereum.
Coinbase in my opinion is the easiest way to buy Bitcoin. It’s available in different countries, and you can buy bitcoin using your credit card. Coinbase allows you to store your bitcoin in a wallet on their site, although you can just as easily transfer it to a wallet on your own device.
If you’re looking to trade cryptocurrency on an exchange, then you’ll first need to buy bitcoin. This is a good option for getting started.
Bitfinex lays claim to being the largest digital currency exchange. Here you can trade one currency for another. The exchange has been subject to hacking in the past and also had issues with Withdrawals. I don’t see it as a legitimate place to trade anymore and people are now using..
Polofinex is much like Bitfinex. I have used them in the past for handling exchanges from one digital currency to another. The interface isn’t very good, but it does have a large amount of trading volume. One of the main problems with exchanges is the volume. But as more and more traders are turning to digital currency this problem is becoming less of an issue. In order to make a profit on Polofinex, you’ll need to have plenty of trading experience and understand not just Bitcoin but other cryptocurrencies too.
eToro allows you to trade Bitcoin CFDs. CFDs track the price of the underlying asset and allow you to profit from this movement either up or down. This means you can profit if the price of bitcoin goes down (shorting) or profit if the price goes up (buying). The interface of eToro will appeal to many traders as it’s much easier to use than actual digital currency exchanges.
One other option you have on eToro is being able to copytrade. In this scenario, you allocate funds to an experienced cryptocurrency trader and those funds will be used to mirror the trades to that trader. You can pull out your funds at any time. With this option you can tap into the experience of pro traders.
Whaleclub allows you to trade forex and shares using your bitcoin. In this situation, you’d be using bitcoin like a traditional currency and trading it against traditional assets such as Apple shares or currencies such as the USD.