Buy and Sell Bitcoin on Deriv

Bitcoin has swept the news with its impressive and historic uptrend. I have witnessed Bitcoin being used as a safe haven in the geopolitical turmoil. It’s not because Bitcoin is as stable as gold, but because it’s decentralized.

Bitcoin is an exciting and relatively new currency, albeit with much higher volatility than other financial products. That’s why so many people actually trade cryptocurrencies like Bitcoin.

If you are new to Bitcoin trading, this article will help you understand the following concepts:

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What is Bitcoin (BTC)?

Before we explain how to trade Bitcoin, we need to look at what Bitcoin is in the first place. Bitcoin is one of the earliest cryptocurrencies invented by its creator, Satoshi Nakamoto, in 2008. The main idea was to provide an alternative to centralized (also known as fiat) currencies regulated by central banks and settlement processors.

The reason Bitcoin is not regulated is that it is a digital currency. That may seem unconventional, but the advantage is that each transition is recorded in a publicly available digital ledger. Each person involved is anonymous and only the transaction details are recorded. This also means that transactions are irreversible, solving the problems of many electronic currencies.

Another advantage is that the total amount of Bitcoin is already known. Fiat, on the other hand, is issued by the central banks of each country as needed. This can cause the price of the currency to fall. Bitcoin does not have such a problem. The maximum amount of Bitcoin is already known, so all that is left is when it will be fully mined. Mining is simply processing this transaction information and securing a network. The term blockchain has come to be used because this is done by stitching together “blocks” of transaction information through mathematical calculations.

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How to Start Bitcoin Trading on Deriv

Deriv offers Bitcoin CFD ( Contract for Difference) transactions. This allows for faster and more user-friendly trading of this popular cryptocurrency. There is no obligation to own real assets in CFD trading. This means that if the price moves against you, you don’t have to stick to it. Not so if this is a real asset. When you want to sell, you have to wait until you find a buyer.

Another advantage of Bitcoin CFD trading is the ability to trade both up and down trends, which is not possible if you own a cryptocurrency. This is why traders who prefer day trading choose CFD trading.

Convenience is also one of the reasons traders use CFDs. In order to purchase and store Bitcoin, you must first register with a cryptocurrency exchange. Finding a reliable and secure exchange requires hours of research, and even the most famous exchanges can be hacked or even worse “bankrupt”.

You’ll also need a cryptocurrency wallet – and the complexity continues: wallets include physical wallets, desktop wallets, mobile wallets, and web wallets. If you lose your login information, you will be locked out of your wallet. You may be able to recover your account, but if you do not, your entire account will be locked by your password.

Most trusted brokers (and their customer support teams) guarantee access to your account so you don’t have to worry when trading Bitcoin CFDs. Regulated brokers also ensure the security of your funds and accounts in the event of company bankruptcy.

To trade Bitcoin, all you have to do is sign up for your account, deposit a deposit and start trading. You’ll need to fill out some forms to verify your identity later, but this process is simple and is in place to ensure the security of your funds and personal information!

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Factors Affecting Bitcoin Prices

Bitcoin prices depend on several factors:

  • Demand, supply, and sentiment (see Bitcoin price surge in 2017)
  • Current mining cost
  • Miners get rewards for processing blockchain payments
  • Direct cryptocurrency competitors
  • An exchange that offers buying and selling of Bitcoin
  • Rumors of new or potential regulations
  • Forks, possible forks in the future, or rumors about forks

Bitcoin prices are driven by the basic rules of the market. That is, supply and demand. However, more than that, the price of Bitcoin depends on factors such as mining costs, government restrictions and rules, and rumors that these restrictions may be applied.

Speculative transactions also move the price of Bitcoin. With Bitcoin’s unprecedented bull market, the market was flooded with investment in this new product. As a result, prices skyrocketed and closed in 2017 at an astonishing $ 20,000 per BTC. Many analysts have pointed out the similarities between Bitcoin and the tulip bubble, a historic financial bubble of the 17th century.

Mining costs are also one of the factors that move Bitcoin. Mining is an energy-intensive process that involves expensive hardware (usually computer components prepared for graphics processing). Today, for Bitcoin mining, there is a huge facility with a number of shelves that aggregate these components.

These are just a few of the various factors and may change in the future. Encryption currency when trading with high volatility products such as, most reliable way to manage risk is that you pay attention to the changes in the situation. Keep an eye out for news and updates.

Anxiety about future forks could push Bitcoin’s price down. Forks occur when cryptocurrency protocol updates are proposed and are usually done to add more functionality, but no consent is obtained within the mining community. As a result, two types of Bitcoin with different rules will be mined by different miners. They can have different values ​​and usually have different names.

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Possible Trading Strategies for Bitcoin

Bitcoin trading strategies are often used when trading traditional financial products, so you may be familiar with them.

Day trading
It is one of the popular transaction forms for both beginners and experienced players, and it is a strategy based on anticipating and predicting short-term movements. As the name implies, most transactions are closed by the end of the trading day.
Swing trading
Like day trading, swing trading recognizes rapidly emerging trends and tries to take advantage of them until the trends slow down and eventually reverse. This usually depends on the sentiment of the market where sales and so-called buying fever occur.
Automatic trading
It is ideal for advanced traders who can analyze, set protective limits and stop losses, and react quickly to market changes. This is called “automation” and certain operations are actually automated, but you still need to keep an eye on the market, news and your trading situation.

After performing the analysis, the trader calculates the target by considering the ratio of risk and return. The trader then sets the entry and exit points to be executed automatically.

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FAQs about Bitcoin trading on Deriv

How much do I need to trade Bitcoin?
Deriv has a low deposit of $ 25, and you can actually use Deriv’s platforms to trade with no fees.
How much does it cost to trade Bitcoin?
Deriv never charges hidden fees or fees. Only spreads.
When is Bitcoin trading time?
Bitcoin is not tied to one market or location, so you can trade 24 hours a day. Deriv allows clients to trade Bitcoin on weekends as well.
What is the Bitcoin trading symbol?
The Bitcoin trading symbol is BTC, which is traded as a USD cross rate. It is displayed as BTC / USD on Deriv’s trading platform.
Is Bitcoin Trading Safe?
As with any CFD contract , there is a great risk to the invested capital. However, unlike Bitcoin trading on exchanges , you can use your own risk management tools and conditions on the trading platform provided by Deriv. This includes negative balance protection, free stop-loss guarantees, and security of transactions with regulated brokers.
What is the difference between Bitcoin trading and Forex or stock trading?
Both are financial products that can be traded as CFDs, but they are completely different financial products that are affected by different events. Please check these points carefully before you start trading.
Can I trade Bitcoin on my smartphone?
Of course it is possible. Available on iOS and Android, the Deriv app allows you to trade over 200 CFDs Deriv offers directly from your smartphone.

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