If you haven’t heard about Bitcoin or cryptocurrency, then you’ve been living under a rock! Bitcoin is the talk of the town, especially now that its worth a small fortune for each coin! There’s immense discussion and debate about Cryptocurrencies, and how to procure and earn Bitcoin. There are numerous ways to add Bitcoin to your wallet ranging from Bitcoin Faucets to taking on micro-tasks in exchange for Bitcoin, but what is a Bitcoin exchange? Simply speaking, a Bitcoin exchange is an online marketplace that enables traders buy or sell bitcoins using various fiat currencies or altcoins. But really, this is just scratching the surface of this vast digital world. If you want to understand more about Cryptocurrencies, specifically, Bitcoin or Cryptocurrencies exchanges than read on. Let’s see what the whole fuss is about, and understand which Bitcoin or Cryptocurrency exchange will work best for you! Affiliate disclaimer: To keep this site running and free to use, we monetize this page with affiliate links. So if you were to click on a link of a company we personally recommend, we get a small commission in return. There is absolutely no cost to you. What does Cryptocurrency mean? Today, Bitcoin or Cryptocurrencies has become a world-wide phenomenon. It still seems somewhat geeky, and most people don’t fully understand Bitcoin, but governments and organizations are aware of its importance in the present scenario. Not many people are aware that Cryptocurrency are actually a by-product of another invention. Satoshi Nakamoto, the invisible inventor of the most famous Crytocurrency, the Bitcoin, never aimed to invent a form of currency. He wanted to establish as peer-to-peer cash system. The most important part of Satoshi’s invention is that he was able to create a decentralized digital cash system. The failure of many forms of digital cash systems led Satoshi to create a system that did not have a central cash authority. This gave birth to Cryptocurrencies. In this system, there’s no server. This means that each entity in this chain has to do their work implying that every peer involved needs to have a list of transactions to see whether future transactions are correct or an attempt to spend double the amount. You’re probably thinking about how everyone achieves a consensus in the absence of a governing body? No one thought it was possible to Satoshi actually managed to do it. What is a Bitcoin/Cryptocurrency exchange? A Cryptocurrency exchange connects buyers and sellers just like a regular currency exchange (forex). Traders and buyers can buy or sell Bitcoin and other Cryptocurrencies by choosing a market order or a limit order. In a market order, a trader enables the exchange to trade his/her coins for the best prices in the digital market. In case of an order limit, the trader asks the exchange to trade his/her coins for a rate that is below the current ask or over the present bid, contingent on whether they are buying or selling. Usually, Cryptocurrency exchanges designate traders as makers or takers. When a participant places a limit order, the exchange enlists it in its order book till the price is matched, and the trader is called a maker. In the case of takers, the trader places a market order that is immediately filled. All Bitcoin/ Cryptocurrency exchanges impose transaction fees that are applied to each transaction conducted within the online marketplace. The fees are related to the number of Bitcoin transactions that a trader conducts on the exchange. For instance, Bitcoin exchange Poloniex has transaction fees ranging from 0 to 0.25 percent while GDAX fees range from 0 to 30 percent. Signing Up For An Account To be able to transact on these exchanges, you have to register with the exchange and undergo a few verification processes to determine and authenticate your identity. When this verification process is completed, the user has to transfer money into their account before they can start trading Cryptocurrencies. Various exchanges employ different payment methods that can be employed such as wire transfers, credit/debit cards, bank drafts, money orders, or in some cases, even gift cards. Deposits and withdrawals come at a fee, depending on the chargeback risks of the medium. For instance, drafts and wire transfers pose a lesser risk of chargeback than, say, Paypal or a debit card. Apart from the transaction fees, traders may also need to incur currency conversion fees. This depends on the currencies that are acceptable to Cryptocurrency exchange. Transacting on an exchange that approves your local currency is a great way to avoid Forex fees. Don’t confuse a Bitcoin exchange with a Bitcoin wallet. While an exchange is an online marketplace connecting buyers and sellers, a wallet is a digital storage operation that where Bitcoins can be securely stored. How To Create A Solid Forex Strategy One biggest mistake for many new traders is starting to trade Forex without a solid Forex trading strategy. The Forex market is really attractive because it operates 24 hrs a day and you can trade when the market is going up or when the market is going down and in the eagerness to make money, or prove themselves they dive headlong into trading. Does that mean the beginner Forex traders cant make money? Yes, you can make money trading Forex…and its if you are a beginner trader and you get into Forex trading and start making money right away, you should be very careful to let ego overcome you. You can make a fortune trading currencies in the short term but soon this will lead to a bad psychology and trading discipline problems and you’ll end up blowing up your forex trading account. Good trading discipline, psychology and humility are only achieved through experience. To be successful in Forex trading, you’v got to have a strategy/plan in place which you must follow. Creating or finding a Forex trading strategy is very important as this addresses the following: Reason for taking the trade: why buy or sell? And what currency pair? Timing of the trade: why buy now? should you buy or sell after economic news release? Asian session, London session? New York session? Trading objective: what’s the profit target? What’s your stop loss? Money management? How much are you risking per trade? Per day? Documenting and analyzing your trading results? This identifies your strengths are well as weaknesses. What is your reason for entering a trade? And there should be a really good reason! If you are entering a trade out of boredom or just the need to take a trade for the excitement, this is a recipe for disaster. Nothing feels more worse than entering a trade and watching a trade turn into a loss when you precisely know you should not have taken that trade in the first place! Every trade should be taken based on a condition that’s been stated in your trading strategy, whether it be a technical reason or fundamental reason or both. Follow what your trading strategy says. Free Forex Trading Strategies When selecting which type of forex trading strategy to use, you have two options: You either pay for them You can use any of the free Forex trading strategies on this site and test them out. The trouble with paid Forex trading systems is that: You can spend a lot of money on buying a Forex trading strategy that does not fit your trading style. Later down the line you realize it does not fit your trading personality so you won’t be using it once your initial fascination starts to wear off. Waste of money. With free Forex trading strategies: You have the option to test them out without paying for them and eventually find a trading system that suits you. Free Forex trading strategies can make money in Forex. With that in mind, this Forex website has hundreds of Forex trading strategies for all kinds of traders from beginners to advanced traders. We’ve been trading Forex for many years and tried tons of strategy and indicators with little success. The only way we’ve been able to make profit constantly is with the trading strategy we developed. It works for almost all instruments but especially well with Bitcoin. We trade exactly as you can see in the live bitcoin trading you can see on our YouTube channel. Our Bitcoin trading strategy is simple, we are using Fibonacci ratios plus support and resistance to identify area where the price will resume or break the current trend. Bitcoin Trading Strategy It is important to note that the bitcoin trading strategy we use to make money is not a buy and hold strategy. Even if doing so makes a lot of sense knowing the potential that the bitcoin price will be much higher in the coming years, day trading bitcoin with leverage will generate more profits. We take positions (BUY or SELL) whenever our unique technical analysis tells us that the current Bitcoin price will go up or down. We usually keep our positions open between 1 to 8 hours. Because we use the leverage offered by our broker, we can make huge returns even within small changes in the Bitcoin price. Be warned that using leverage is risky so keep that in mind before opening big positions. Another thing and especially with Bitcoins, always use a stop-loss! Volatility can be insane and I can assure that it will. Bitcoin is a very special instrument to trade because of it’s nature. It’s a game changer in so many ways! It’s by far our favorite instrument to trade these days. Like it was not enough to get us addicted, the Bitcoin trading broker does not close on week-ends like regular Forex broker! We’ll need to find ways to get some sleep! The best Bitcoin Trading Broker Many popular and reputable online Forex brokers are now offering crypto-currencies trading. I’m not speaking about a crypto-currency exchange where you can buy or sell them. I’m presenting another option here which is funding an account with regular money (USD, CAD, YEN, EUR etc) and then taking positions (buy or sell) on pairs like BTCUSD(Bitcoin), ETHUSD(Ethereum) or LTCUSD(Litecoin) exactly as I do on my YouTube channel. There are many advantages in choosing this way of trading crypto-currencies. One of them is fund safety. Not having to deal with hackers trying to steal your wallet or not having to wish that yet another big exchange will close (like e-btc) is a definite benefit. When you fund your trading account at a regulated forex broker, you basically cancel these risk. Another advantage is being able to use leverage (margin trading). Leverage will let you increase your position size which will multiply your profit when you apply your edge when trading. Being able to take short positions is another thing you can do and that is not offered at most popular exchanges. Many will also like the fact that they will be able to trade many other popular pairs like EURUSD, USDJPY, XAUUSD(gold) and dozens more. Having been a Forex trader for almost 10 years, I tried and tested most of the better-known brokers and I have a very good idea of what to look for when choosing where to trade. The most important things I’m analyzing are the trading conditions (spreads, leverage offered, server uptime, orders execution speed to name a few), the different markets I can trade, where the broker is regulated and the funding/withdrawal methods. I also like having a live chat support whenever I have a question. For the last few years, I’ve been trading at the same broker but they were not offering crypto-currency pairs so when I started trading Bitcoin I had to settle for a not so good broker. You should have seen my big smile when I got the email from my favorite broker announcing they’ve just added a lot of crypto pairs (even more than all other brokers) and seeing that the spreads offered were so low! So here I am, trading at the best broker again.
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