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Weird Discrepancies at Brokers With Bitcoin Trading

We are inundated with offers from Forex CFD brokers and Spread Betting brokers who recently listed Bitcoin. Many of these Forex brokers are promoting to investors “the ability to invest” in Bitcoin, Ripple, Ethereum, etc.. The problem is that you are going to be trading bitcoin, not actually investing in a Crypto Currency.

Bitcoin Trading or Bitcoin Investing

Stop for a minute and think about what your are doing!

Are you buying a bitcoin, or are you placing a trade on direction of bitcoin’s price?

When a person uses a bitcoin exchange like Coinbase, they are in fact buying a bitcoin. If you are using a Forex broker like Plus500, EasyMarkets or eToro, you are buying a CFD (Contract for Difference).

Wide Spreads Destroy Trading Profits

Once you have decided that you are interested in “Day Trading” in Bitcoin, (because you are a thrill seeker who loves volatility), you needs to compare the various Crypto brokers.

Three important items to compare:

  1. Verify that the Crypto / Forex broker is licensed and regulated.
  2. Signup for a Demo Account to see the Trading Platform.
  3. Check how wide the spread are for your particular CryptoCurrency pair.

Brokers in different countries will adjust spreads based on liquidity and demand of their client base.

For example; a broker like ForTrade which is based in London, will try to keep their USD/GBP spreads tight because that is the asset many clients are trading. Meanwhile, the spread on $BTCUSD at ForTrade is $180.

The tightest spreads we recently found was at the Cyprus licensed broker Alvexo in Europe. Spreads were only $30 wide.

eToro Crypto Currency CopyFund

Crypto Currency Investment Funds

The allure of investing in any Crypto Currency comes from the news reports of millionaires whose $1,000 turned into $10,000,000 because they bought Bitcoin years ago.

eToro is a very large “social trading” brokerage firm, that appeals to new investors who want exposure to the markets without having to think. Investors setup accounts at eToro, and pick which trader to follow, or which CopyFund to invest in.

What eToro did, was they created a Crypto CopyFund, and started investing in a basket of Crypo Currencies. It slowly gained a few followers, but then it produced a 89% return in December 2017, so 3,000 people started investing there, see full details here.

Trade Bitcoin at a Forex Broker

Word from the wise…. Always verify that the brokerage firm you are using has a valid license and is regulated by the government in your country. Hundreds of scam websites opened recently offering fake trading accounts, and many investors have lost money there.

Best Bitcoin Brokers

About Gamer Scene

Enjoys writing about Technology that is directly related to our everyday lives.

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