While a lot of people stash their bitcoin away, hoping that the price will rise – did you know you can also use your Bitcoin to trade. And more specifically you can use it to trade forex.
Trading forex is nothing new, but trading forex using Bitcoin is. There are quite a few brokers that allow you to trade bitcoin, but I have only seen a couple that allow you to fund your brokerage account using Bitcoin. My favorite of these brokers is Whaleclub – which I believe to be the best option for using your bitcoin for trading.
Digital Currency Only
Whaleclub is the first broker I've seen that deals exclusively with digital currency. They allow you to trade forex, stocks and commodities using Bitcoin or Dash (another popular digital currency). In fact, they don't support fiat currency at all. The only way to fund your account is using digital currency.
If you have a stash of Bitcoin or Dash, and know how to trade, why not put your currency to work.
A familiar trading interface
Once you've funded your account, you can trade forex like you would on any other brokerage. You can open long or short positions, trade using leverage, use trailing stop losses etc. etc. But the big difference is that instead of your account currency being USD like most brokers (or another fiat currency), the bast currency is BTC or Dash.
If you've traded on other platforms, then you'll have no problem trading on Whaleclub.
The interface is really good and purely web based, so there is nothing to download and install. The platform has good built in charts powered by TradingView. Although it may not be as technical as some platforms, I think it will suit everyone from new traders to pros.
Fast withdrawals and deposits
One of the best things about dealing with digital currency is the speed at which transactions happen. Bitcoin takes around 20 minutes to confirm a transaction, so that's pretty much how fast it takes to deposit. There is no complex verification process to go through and you don't need to worry about time consuming bank transfers.
I tested the withdrawal function and was able to withdraw around $200 worth of profits in Bitcoin and saw it land in my bitcoin wallet within a few minutes. Whaleclub states that withdrawals are processed throughout the day manually. This process seems to be very fast.
The most important thing to remember when choosing a broker is to make sure you choose a platform that is reliable. I've heard of no horror stories and the company and community seem to be very responsive and engaged which is a good sign. I'll of course update this post if I come across anything to the contrary.
Whaleclub prides itself on it's privacy. They do allow you to be anonymous. I feel like privacy will become more and more an issue in the future. Especially in regards to the security of your crypto investment from hackers. It's nice to see Whaleclub embrace privacy and i'm sure you'll see other brokers do the same.
Forex trading is still difficult
Remember forex trading is still risky and does require skill and knowledge. I can't tell you how to get rich quick from Whaleclub or trading forex. If you are new to trading, make sure you start with a practice account. Whaleclub offers this for free so you can try trading without the risk. For complete beginners I always recommend copy trading instead. Unfortunately whaleclub doesn't offer any copy trading features (it's really not that type of broker) so you'll need to try another platform if you're looking to copytrade.
You can find out more about Whaleclub here.
Disclaimer: eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.
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