Did you know that you can use Bitcoin to trade and profit from stocks. Thanks to platforms such as 1Broker and Whaleclub that deal exclusively in digital currencies, trading using Bitcoin is just as easy as trading using fiat currency. So if you're looking to put your cryptocurrency to work and use it to trade, read on to find out how.
Trading Stocks on 1Broker
1Broker is currently my favorite place to trade using Bitcoin. That's thanks to it's low fees and good range of markets. It doesn't have as good a Interface as whaleclub but it's still a great place to trade. If you're looking to starting trading with Bitcoin, then I recommend starting at 1Broker.
What you trade on 1Broker
As well as stocks, you can also trade forex, commodities, indices, and cryptocurrencies. If you're new to trading, then I would recommend starting with either stocks or indices. These are usually more stable. Indices are like an average of an entire market. So they don't tend to move around as much as forex or cryptos.
How to trade on 1Broker
Trading on 1Broker is pretty easy. While trading might seem complicated at first, once you've made a trade or two, you'll pick things up pretty quickly. I'll take you through the steps:
- Register an account. registration is quick and easy. And because 1broker only deals in digital currency, there is no complex verification process.
- Deposit Bitcoin. I recommend depositing at least 0.002 Bitcoin. Any less and you won't have enough to trade profitably with.
- Find a Market. Click on the markets link to see the different markets you can trade in. Find a market you're comfortable trading in. You might want to start with something familiar such as Apple stocks.
- Open a Trade. Click the blue button next to a stock to open a trade. This will open a long trade. You could also a “short” trade, but short trading in my opinion is more difficult.
Tips for getting the most out of 1Broker
- Don't use too much leverage – leverage is a tool to increase your profits. It allows you to control a larger position with a smaller amount of capital. The downside is that if the market moves against your trade, your losses will be multiplied too.
- Don't close out your winning trades to soon – it's tempting to close out a trade as soon as it's profitable. However you need to take into account that at some point you'll open a losing trade. So your winning trades need to profit enough to cover a future bad trade.
- Start with Indices – Because indices have had a profitable trend over the past 5 years, it's a pretty good bet to go long on them. The S&P 500 Index is pegged to the U.S economy. So it should continue rising in value over time.
The Benefits of Trading Stocks on 1Broker
Keep and Easy Signup with no Verification
If you value privacy, then you'll like 1Broker. I've always been a little uncomfortable uploading documents such as a passport to pass verification on brokers. What happens if the broker is hacked???? So it's nice to see the 1broker values privacy.
Potential Tax Benefits
If you're trading exclusively in cryptocurrency and never convert back to fiat, you could potentially see tax benefits. However, it's best to check with an accountant because this might not be the case where you live.
1Broker has a handy copy trading feature. If you're new to trading, and don't know what trade, you can automatically copy the trades of better traders. Whenever they make a trade, your account will too. If you're looking to copy trade using fiat currency, check out this guide on my favorite copy trading platform.
Can you make money on 1Broker?
Absolutely! You only have to look at the top traders on the platform who share their trades to see the gains they have made. But remember, trading does take practice 🙂