Bitcoin and Forex: the perfect marriage

What is Bitcoin?

Bitcoin is a peer-to-peer solution for online currency. It allows anyone to send money to a recipient, no matter where they are in the world, without a middle man, such as a bank or other financial institution. The sender simply needs internet access and a bitcoin address to either deposit or withdraw funds via a trading account.

One advantage of Bitcoin is that it is a unique system run on servers spread around the world. This means that it cannot be adversely affected by non-optimum factors or inflation.

Why is Bitcoin so popular?

The ascent of Bitcoin has been clear for everyone to see. It may have started out as an underground alternative to online payments, but its rise to one of the most popular cryptocurrencies in the world can no longer be denied.

In February of 2017, Bitcoin broke market valuation records, even surpassing gold at one point in March.

The popularity of Bitcoin is largely down to the technology that runs it, known as blockchain. As a potentially decentralized and more secure data ledger system, numerous sectors have adopted blockchain. It has become particular popular in the finance sector, with forex being one such example.

What is Forex?

Forex (the foreign exchange market) is where traders, investors, banks, businesses, and governments exchange currencies and speculate on the outcome. The market is open 24/7 from Monday to Friday.

Unlike stocks, where all orders are processed centrally, the forex market has no central marketplace to speak of. It is made up of quotes provided by all major banks. Not all banks will quote the same price, however. A broker will take the various prices and offer an average price to the trader. Therefore, it is the broker who is essentially creating the market and selling to traders.

Just how big is it?

Forex is the world’s largest financial market. The currency market is, in fact, several times larger than the world stock market. It is also the most liquid market in the world, with trillions of dollars being traded on a daily basis.

How they work together

Unlike other forex currency pairs, which move 1 per cent per day (and barely at that), Bitcoin prices can move over over 30 per cent over the same 24 hours. This provides far greater opportunity and flexibility for the forex trader.

With the increased popularity of both Bitcoin and forex, coupled with the fact that they work so fluidly together, it was only a matter of time before the internet jumped on board. Now, websites such as Forex Bonus provides yet further opportunity to both prospective and veteran traders alike. The website, which traders can visit now, compares offerings of various brokers’ currency pairs that include Bitcoin. For those looking to learn more about forex and increase their trading profits, they will be able to find additional tops and info on the site. Working with a demo account will allow newcomers to practice using virtual currency before they invest real money. 

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