How to trade Bitcoin

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Contents

Биткоин (BTC)

Торгуйте CFD на биткоин, другие криптовалюты, а также на валютные пары, акции, индексы и биржевые товары с помощью удостоенной наград платформы Capital.com. Без комиссии. Лицензии FCA и CySEC. Кредитное плечо до 1: 200 (только для профессионалов). Платформа доступна в Интернете и на мобильных устройствах. Начните торговать прямо сейчас.
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Биткоин (BTC) был запущен в 2009 году и стал первой децентрализованной криптовалютой. Это ведущая криптовалюта по рыночной капитализации, а также самая дорогая. Биткоин составляет примерно половину общей рыночной капитализации криптовалют.

Торговля BTC– часы торговли

Вы можете торговать CFD на биткоин на Capital.com 24/7.

Как начать торговать биткоин-CFD

Есть два варианта, как можно торговать BTC. Во-первых, можно купить криптовалюту на биржах, например, купить биткоин на бирже Bitstamp. Таким образом, вы сами будете владеть биткоином. Это считается долгосрочной инвестицией, так как вы ожидаете, когда цена значительно вырастет, чтобы продать крипто-монеты на бирже.

В качестве альтернативы можно торговать контрактом на разницу (CFD) на конкретную криптовалюту и спекулировать на разнице в цене биткоин. CFD – это финансовый инструмент, который представляет собой контракт, обычно между брокером и инвестором, когда одна сторона соглашается выплатить другой разницу в стоимости ценной бумаги, которая называется обычно спредом покупки/продажи. Вы можете держать длинную позицию (предполагая, что цена биткоина будет расти) или короткую позицию (полагая, что цена биткоин упадет). Это считается краткосрочным вложением, поскольку CFD обычно используются в короткие временные интервалы. Например, торгуя CFD на биткоин, вы также спекулируете на росте и падении пары BTC/USD.

Торговать Bitcoin to US Dollar – BTC/USD CFD

Существуют кардинальные различия между тем, как торговать биткоином и торговать CFD на крипторынке. При покупке криптовалюты она сохраняется в кошельке, а при торговле CFD позиция удерживается на вашем торговом счете, который регулируется финансовым органом. У вас больше гибкости при торговле с использованием CFD, потому что вы не привязаны к активу; Вы просто купили или продали основной контракт. Кроме того, CFD являются более устоявшимся и регулируемым финансовым продуктом.

Что такое биткоин? Что такое криптовалюта?

Биткоин (bitcoin) – это первая децентрализованная криптовалюта, запущенная в 2009 г. человеком или группой лиц под псевдонимом Сатоши Накамото, и проложила путь для многих других криптовалют. Именно биткоин сформировал рынок криптовалют, каким мы его знаем сегодня. Криптовалюта хранится в «кошельке», который может принимать различные формы. Например, биткоин может храниться в онлайн-кошельке или в автономном электронном кошельке.

Криптовалюта – это цифровой актив, задуманный для использования в качестве средства обмена, который использует криптографию для безопасных транзакций, контроля над эмиссией и подтверждения передачи средств. Если коротко, то криптовалюта – это децентрализованная цифровая валюта.

Почему стоит торговать CFD на криптовалюту с Capital.com?

Передовая технология ИИ: Новостная лента в стиле Facebook предоставляет пользователям персонализированный и уникальный контент в зависимости от их предпочтений. Если трейдер принимает пристрастные решения на основе собственной предубежденности, инновационная лента новостей (SmartFeed) предложит широкий спектр материалов, чтобы вернуть его на правильный путь. Нейронная сеть анализирует поведение в приложении и рекомендует видеоролики и статьи, которые помогут исправить вашу инвестиционную стратегию.

Торговля на марже: Предоставляя торговлю с маржой (1: 2 для криптовалют), Capital.com предоставляет вам доступ к рынку криптовалют с помощью CFD.

Торговля на разнице: Когда вы торгуете CFD на биткоин, вы не покупаете сам базовый актив, то есть вы не привязаны к нему. Вы спекулирует на росте и падении цены биткоин. Торговля CFD ничем не отличается от традиционной торговли с точки зрения стратегий. CFD-инвестор может открывать короткие или длинные позиции, устанавливать стоп-лосс и лимиты и применять торговые сценарии, которые соответствуют его или ее целям.

Всесторонний анализ торговли: Браузерная платформа позволяет трейдерам формировать собственный анализ рынка и делать прогнозы с помощью гладких технических индикаторов. Capital.com предоставляет данные по обновлению рынка в реальном времени и различные форматы графиков, доступные на десктоп, iOS и Android.

Фокус на безопасности: Capital.com уделяет особое внимание безопасности. Лицензированный FCA и CySEC, Capital.com соответствует всем нормам и обеспечивает безопасность данных своих клиентов в первую очередь. Компания позволяет выводить деньги 24/7 и хранит средства трейдеров на отдельных банковских счетах.

История биткоин

Хотя биткоин был впервые запущен в 2009 году, только 17 марта 2020 года первая биржа биткоин начала работать на ныне несуществующем BitcoinMarket.com. Позже в том же году, в мае, Ласло Ханьец совершил первую сделку в реальном мире, купив две пиццы в Джексонвилле, штат Флорида, за 10000 BTC.

Исторические цены Bitcoin

Биткоин достиг отметки в 1000 долларов в 2020 году, спустя 7 лет после того, как произошел его первый обмен на другой актив. Но к маю того же года биткоин превысил отметку в 2000 долларов. К сентябрю 2020 года Управление по финансовому руководству (Financial Conduct Authority, FCA), орган финансового регулирования Великобритании, выпустил предупреждение для потребителей, а генеральный директор JP Morgan Джейми Даймон заявил, что биткоин является «мошенничеством». В декабре 2020 года биткоин преодолел отметку в 20 000 долларов, после чего упал на 17-18%. После беспрецедентного бума в 2020 году биткоин испытал обвал в период с января по февраль 2020 года, когда цена упала до 6510 долларов. После обвал оставался относительно стабильным.

Часто задаваемые вопросы

«Пузырь» в рыночной терминологии означает, что цена актива намного превышает его внутреннюю стоимость. Например, пузырь доткомов, возникший в период с 1995 по 2001 год, является ярким примером того, как компании, работающие в сфере информационных технологий, наблюдали рост своих акций просто из-за настроений на рынке в отношении этой конкретной отрасли, независимо от их прибыли или шансов на успех. Этот рынок затем рухнул в марте 2000 года.

Проблема в том, что сложно определить ценность криптовалюты для начала. Хотя многие инвесторы держат криптовалюты, как если бы они были акциями – это не так. Тем не менее, они также не работаю как валюты, что затрудняет их сравнение с ценностью валют. В общем, с любой новой технологией рекомендуется соблюдать осторожность. Вполне может случиться так, что биткоин или Rippleне переоценены, и что пузырь, если таковой имеется, представлен различными новыми криптовалютами, которые управляются настроениями рынка. Возможно, это сопоставимо с примером доткомов, где акции, такие как Amazon – не были переоценены, но другие, такие как Pets.com, который прошел от IPO до ликвидации за 268 дней, явно были переоценены. Возможно, только время покажет, насколько рынок перегрелся, но в любом случае есть варианты торговать с CFD, и открывать как длинные, так и короткие позиции.

С конца 2020 года до начала 2020 года наблюдался скачок цены на биткоин (до 20 000 долларов за биткоин), за ним вскоре последовали другие криптовалюты. Рынок рухнул в период с января по февраль 2020 года, и стоимость биткоина упала на 65%. Соответственно, и большинство других криптовалют также рухнуло. Так что на крипто-рынке явно был пузырь. Напрашивается вопрос, есть ли еще один пузырь? Ценность большинства криптовалют определяется их потенциалом; как они могут быть использованы для развития общества в будущем. Однако без институционального признания потенциальная ценность останется лишь потенциальной. Но значит ли это, что криптовалюты переоценены – это другой вопрос.

Перед покупкой биткоина вам понадобится место для его хранения. Для этого предназначен кошелек, и он состоит из двух элементов: личного ключа и публичного адреса. Для кошелька требуется личный ключ, специфичный для данного человека, который обеспечивает доступ к адресу биткоин, хранящемуся в кошельке, который также является открытым ключом. Кошелек – это то, что позволяет биткоину или любой криптовалюте быть надежным средством обмена. По сути, люди могут отправлять биткоин на определенные кошельки, используя открытый ключ, доступ к которому может получить только индивидуум с помощью своего закрытого ключа. Некоторые люди предпочитают хранить свои монеты в кошельке, предоставленном их биржей криптовалют, потому что многие биржи имеют мобильные приложения, которые позволяют людям легко покупать, продавать и тратить криптовалюты.

Криптовалютные биржи или онлайн-кошельки не защищены от кибер-кражи. Печально известный случай биткоин-биржи Mt Gox подтверждает это. Исторически, Mt Gox была крупнейшей в мире биткоин-биржей, пока в 2020 году не объявила о банкротстве после того, как его безопасность была скомпрометирована. У Mt Gox было 850 000 биткоинов, оцененных в 450 миллионов долларов в феврале 2020 года, перед тем, как биржа была опустошена хакерами. Считается, что закрытые ключи цифрового кошелька Mt Gox были украдены еще в 2020 году. Эти риски исключаются при торговле CFD, поскольку вам не нужен кошелек.

Крипто-обвал в 2020 году стал крупнейшей распродажей большинства криптовалют в истории рынка. С 6 января по 6 февраля биткоин упал примерно на 65%. Соответственно, почти все другие криптовалюты тоже рухнули. Капитализация рынка криптовалют в первом квартале 2020 года упала минимум на 342 миллиарда долларов. Пик биткоин на отметке в 20 тысяч долларов был достигнут в декабре 2020 года, большинство других криптовалют вскоре тоже достигло своего пика. Было несколько потрясений, которые в конечном итоге способствовали крипто-обвал: цена биткоина снизилась примерно на 12% после того, как генеральный прокурор Южной Кореи объявил о намерении запретить крипто-биржам открывать новые торговые счета. Позже в том же месяце был взломан Coincheck, японский биткоин-кошелек и обменник, и было украдено около 500 миллионов токенов NEM (на сумму 530 миллионов долларов), это оказался крупнейший крипто взлом.

Bitcoin Cash – это криптовалюта, которая является хард-форком биткоина. Хард-форк – это радикальное изменение технологии, лежащей в основе биткоина, блокчейна. В случае Bitcoin Cash блоки в блокчейне были удвоены по размеру, что позволило Bitcoin Cash обрабатывать транзакции быстрее и дешевле. Он был создан группой в сообществе биткоин, чтобы соответствовать намерению биткоина стать одноранговыми электронными деньгами. Bitcoin Cash – пятая по капитализации криптовалюта.

How to trade Bitcoin Futures – Ultimate Guide Part1

Have you heard of Bitcoin Futures? You know CME Group’s adding them and this is positive news, but do you really know what derivatives are, how can you trade them, and where can you learn more about futures trading? Here’s your first part of Bitcoin Futures guide to get you started.

Dr. Christina Czeschik, the author of this article, is also publishing a book on cryptocurrencies for beginners that will help you get started nice and easy: Cryptocurrencies for Fun and Profit (with Ratko Stambolija).

Bitcoin Futures

Bitcoin and other cryptocurrencies have evolved from a playful experiment among technical experts to an established and growing branch of the global financial industry. This means that the times in which cryptocurrency traders and investors only concerned themselves with straightforward buying and selling are over. Derivatives are now entering the picture.

What are derivatives?

Think of a derivative as a bet between two parties about the development of an underlying asset. These instruments are derived from the value of the underlying asset, having no value of their own. Hence the name “derivative.”

In traditional financial markets, derivatives are used as speculation objects as well as insurance against losses. The latter is known as hedging. One popular variety of derivatives used for hedging are called futures. A future is a contract between two parties in which one party agrees to pay the other a predetermined amount of money for an underlying asset at a specific point in time.

For example, let us assume that the underlying assets are pork bellies:

Trader A is a producer of pork bellies. In order to insure herself against a price drop in pork bellies in the future, she enters a futures contract with Trader B. Trader B uses these pork bellies to manufacture sliced breakfast bacon. Thus, he is not worried that prices might fall in the future – his worry is that prices will go up. Both traders agree that Trader A will sell a metric ton of pork bellies for 1,000 USD 3 months from now. This increases security for both of their businesses. Because a futures contract is a binding contract between two parties, neither party can drop out of the contract: Even if the price for pork bellies is 1,200 USD at the time of execution, trader A is still contractually obliged to sell for 1,000 USD.

Options: Call and put, short and long, and leverage

Traders A and B in the previous example are hedgers. However, futures contracts, once they exist, can also be bought and sold in their own right. This is where futures get interesting for speculators. Say that Speculator X believes the price of a ton of pork belly will rise to 1,200 USD in 3 months’ time, so buying the futures contract at 1,000 USD is a good deal. He can then sell the contract to bacon producers who want to buy pork bellies at 1,000 USD. The option to buy at a specified price in the future is known as a call option. The price of call options rise when traders assume that the price of the underlying asset will rise.

However, Speculator Y may think that pork belly prices will drop to 800 USD per ton. For her, having the option of selling pork bellies for 1000 USD in the future is highly attractive. Such options to sell are known as put options. The price of put options rise when traders expect the prices to fall of an underlying asset.

The positions of Speculators X and Y are known as the long and short respectively: You assume a long position towards the underlying asset when you speculate the rising prices of an asset, and a short position when you speculate on falling prices (also known as “going long” and “going short”).

By now you may ask yourself, “If I think that the price of an asset is going to rise, why should I buy a call option and not the asset itself?” The answer is this: Options give you leverage. That means that with a limited amount of capital, you can profit much more by buying options than assets – but also lose much more. This is because a small difference in the price of the underlying asset immediately leads to a substantial change in the price of the derivative. For example, when pork belly prices rise from 1,000 USD to 1,100 USD (an increase of 10%), call options for 1,000 USD suddenly become much more valuable – their prices may rise from 10.5 USD to 105 USD. Thus, if you have invested all of your capital in pork bellies, you will win 10% – if you have invested in pork belly call options, you will pocket a 1,000% profit.

These numbers are just approximate examples. The exact price of an option depends on the following factors:

  • The current price of the underlying asset.
  • The so-called intrinsic value of the option, which is simply the difference between the current market price of the asset and the predetermined price in the option (1100 USD – 1000 USD = 100 USD in this example).
  • The remaining time until the expiration of the option.
  • The volatility of the underlying asset.

As for why you should buy a put option instead of the asset itself, the answer is simple. By buying the asset itself, you can never profit from falling prices. With put options you can, simply because their value rises as the price of the underlying stock is falling. In addition to this feature, they offer the same kind of potential for leverage that calls options do, as described above. The price of put options is calculated in a similar manner, but with the important difference being that the intrinsic value is calculated as a predetermined price of the option minus the current market price of the asset – not the other way round as is the case for call options.

It is important to note, however, that leverage means that your potential losses may also be much higher. If pork belly prices fall, call options lose value in a much higher proportion than the pork bellies themselves. In the above example, if the price of pork bellies falls from 1,000 to 900 USD (by 10%), the price of call options may fall from 10.5 USD to almost zero, resulting in a near-total loss of your funds instead of a small loss of just 10%.

What are Bitcoin futures contracts?

A Bitcoin futures contract is exactly what you would expect from the example above, replacing pork bellies with Bitcoin. It is a contract that enables you to buy Bitcoin at a predetermined price at a specific point in the future. For example, if today’s Bitcoin price is 8,000 USD per BTC and you expect it to rise to 10,000 USD per BTC in 4 weeks, then entering a contract which allows you to buy Bitcoin at 9,000 USD in 4 weeks is highly attractive.

Thus, Bitcoin futures are an up and coming class in the emerging crypto derivatives market.

Current situation in crypto derivatives

Just like cryptocurrencies themselves, crypto derivatives have been adopted enthusiastically by the crypto community, and have been traded in an unregulated manner at first, and have even been used as a way to avoid the increasingly heavy regulation in the traditional financial sector.

And just like cryptocurrencies, they soon saw the first backlash from governments and authorities – take for example the Chinese cryptocurrency ban .

Crypto derivatives were naturally discovered as an interesting addition to cryptocurrency exchanges first – probably as individual contracts between interested investors on these exchanges. Nowadays, there are already a couple of exchanges that offer crypto derivatives trading as a standard feature : BitMEX is the current market leader, according to The Merkle News; others are OKCoin , Crypto Facilities , Coinpit , and Deribit , as well as LedgerX (the first regulated cryptocurrency exchange in the US).

The most common way to trade in Bitcoin and other cryptocurrency derivatives today is through contract-for-difference (CFD) contracts. These CFD contracts are usually traded over the counter (OTC), meaning that they are not traded on exchanges but directly between participants. Due to the high volatility (exceeding 1.5-2x std from the mean) most of the OTC platforms do not provide leverage on bitcoin and other cryptos CFDs.

CME Bitcoin Futures

So far, these derivatives market have only been a niche occupied by crypto enthusiasts. That is until one of the newcomers, Crypto Facilities, and an incumbent in the derivatives market have joined forces: Crypto Facilities and the CME Group. The CME Group (controlling, for example, the Chicago Mercantile Exchange that has been around for more than a century) is a large-scale business that is officially regulated and audited by the US financial authorities. It settles its contracts in fiat money rather than cryptocurrency, thus enabling non-crypto experts to speculate on Bitcoin.

Crypto Facilities and the CME Group have been calculating and publishing the Bitcoin Reference Rate (BRR) since November 2020. Such an official rate is a prerequisite of options trading in the traditional markets. The BRR is calculated based on the rates from the biggest exchanges: Bitstamp, GDAX, itBit, and Kraken. More concretely, it is calculated based on all Bitcoin vs. USD trades on the participating exchanges between 3 and 4 p.m. London time. To calculate the BRR, the hour between 3 and 4 is divided into 12 intervals of 5 minutes. For each interval, the volume-weighted median of the Bitcoin price is calculated (statistically, the median, in contrast to the average, prevents single outliers from distorting the price). The BRR is then the average of these 12 median values. More details about the calculation of the BRR can be found in the BRR whitepaper .

The CME Group manages the Chicago Mercantile Exchange (CME), the Chicago Board of Trade and the New York Mercantile Exchange and Commodity Exchange. Taken together, they control the largest derivative market in the world.

CME and Crypto Facilities also publish the CME CF Bitcoin Real Time Index (BRTI), which follows the price of Bitcoin in real-time (updated every second, with a precision of 0.01), as opposed to the BRR explained above (determined between 3 and 4 p.m. London time only). Both can be monitored on the Crypto Facilities website .

As we have seen above, a futures contract has an expiration date. This is the date on which you can purchase the ton of pork bellies for 1,000 USD – this is called a physical settlement. Alternatively, futures contracts can be settled with cash as well. In these contracts, you receive the difference between the current price of the underlying asset and the price in your contract as cash.

And this is where the BRR comes in. The BRR is the reference rate that is relevant for futures contracts and options in Bitcoin. When a futures contract or call option expires on a certain day, the owner will receive the difference between the BRR and the Bitcoin price in the contract as cash (if the BRR is higher than the price in the contract, of course). The BRTI, in contrast, is a real-time statistic that is not binding for any contracts; it tells you for what price you can currently (in this second) buy or sell Bitcoin on the markets.

The CME Bitcoin futures contracts will be cash-settled , meaning that you will receive USD on the expiration date if your speculation was successful and you have not sold the derivative before the expiration date. You will not receive Bitcoin – that would be a physical settlement, even though Bitcoin is not a physical asset. This is a crucial difference because it enables traders to trade in Bitcoin futures without having a cryptocurrency wallet . Every transaction is done in USD.Thus, it is easy for mainstream traders to take part in this market.

The tick size – the minimum amount by which the value of the futures contract can change – is 5 USD per BTC, therefore 25 USD per CME Bitcoin futures contract. See here for more details about the futures contracts at CME.

How to trade Bitcoin futures

As described above, you can assume one of two positions in regards to trading in futures and other derivatives: Long and short. When you follow a long strategy, you speculate on prices of the underlying asset going up. With a short strategy, you speculate on prices going down.

Short and long

If you are “going long” on Bitcoin, you assume that Bitcoin prices will go up. And if you expect Bitcoin prices to go up, you are interested in buying call options – options that enable you to buy Bitcoin at a predetermined price in the future. For example, if the current Bitcoin price is 5,000 USD and you expect it to rise to 8,000 USD 6 months from now, you would certainly pay good money for a call option that allows you to purchase Bitcoin for 5000 USD in 6 months, when everyone else is buying for 8,000 USD.

In contrast, if you are “going short” on Bitcoin, you assume that Bitcoin prices will fall. Buying put options will enable you to sell Bitcoin at some point in the future at a price that is higher than the future price you expect. In analogy to the example above, if the current Bitcoin price is 5,000 USD and you expect it to fall to 2,000 USD in 6 months, then put options allowing you to sell Bitcoin for 5,000 USD in 5 months (when everyone else is selling for 2000 USD) are very valuable.

In both of these examples, the options (call option in the first example, put option in the second) have an intrinsic value of 3,000 USD.

Going long is fairly straightforward. It is similar to buying the underlying asset itself, with the only difference being that it enables you to have more leverage.

Both call and put options have, as we have learned above, a certain expiration date. For example, my call option (Bitcoin for 5,000 USD) that I am buying on November 24, 2020, may have a running time of 6 months and thus expire on May 24, 2020. I can sell this option at any time between now and May 24, 2020. But what happens if I don’t sell?

Let’s assume that on the expiration date Bitcoin is worth 8,000 USD. Then my option is very valuable because it enables me to purchase Bitcoin significantly cheaper than the current market price. If this happens, the option is “in the money” – it is valuable.

If, however, Bitcoin is worth just 2,000 USD on May 24, 2020, then my call option for 5,000 USD is worthless. Nobody is interested in exercising this option and purchasing Bitcoin for 5,000 USD when the market price is only 2,000 USD. Thus, my option is “out of the money.”

So, one of two things can happen on the expiration date: If the option is “in the money,” I will receive its value in cash because CME Bitcoin futures are cash-settled. If the option is “out of the money,” it vanishes from my account without bringing me any profit.

However, if the price of the underlying asset is going down, your options usually become worthless before the expiration date. For example, if the Bitcoin price is already at 2,000 USD on May 17, then only the most extraordinary optimists (or “bullish” investors) would buy a 5,000 USD option that expires in just a week.

Everything discussed above is true for put options as well, except that their value development goes in the opposite direction. They become more valuable as the underlying asset price is falling.

Margin

A futures contract, as we have mentioned above, is a contract between two parties who agree to make a transaction of an underlying asset at a specified time in the future.

For example, you can enter a Bitcoin futures contract with Mortimer Duke saying that you will sell him 1 BTC on March 30, 2020, for the price of 5,000 USD per BTC. (In the actual CME futures contracts, the limit for one contract is 5 BTC, but we will stick with 1 BTC now for the purposes of easy explanation.) You enter into this contract on an exchange like CME.

Now, what if the Bitcoin price is rising? For example, if 1 BTC is worth 5,500 USD, you don’t want to fulfill this contract any more and sell cheap for 5,000 USD. In order to still make things fair for both participants, the exchange (here CME) will make sure that you can sell for the current market price of 5,500 USD if you so wish, but they will compensate your contract partner for this. How? They will take the difference – 500 USD – out of your so-called margin account and give it to Mortimer. This kind of settlement is not only performed on the fulfilment date of the futures contract, but on every trading day, according to the current price of the asset.

In order to make sure that you actually have money in your margin account to settle the difference with Mortimer every day, you are required to put up an initial margin at the beginning of the contract. A lower sum, the so-called minimum margin or maintenance margin , is also defined by the broker. If the money in your margin account falls from the initial margin to the maintenance margin, it triggers a margin call : The broker requests you to fill up your margin account to at least the initial margin (of course, you may also put up more).

However, if you don’t have the money to fill up the margin account upon margin call, you are in trouble: The broker then has the right to sell your assets (usually at a price that is more unfavourable than if you had waited for a good opportunity yourself). This is why margin calls should be avoided.

The margin required for CME Bitcoin futures trading is not yet determined. CME says , “As of November 1, 2020 the estimate of initial margin that CME Clearing would require is 25-30%, though this is subject to change.” The minimum margin will probably be around half that.

How to trade Bitcoin futures on CME

The trading of Bitcoin futures on CME is expected to start in the middle of December 2020. If you want to join in on the fun, how should you proceed?

Trading directly on CME is not possible unless you are a broker yourself. This means that you have to pay a high fee – between thousands and hundreds of thousands of USD – to join CME. As an individual investor, you need to find a broker who trades on CME . You will then open an account with this broker – a margin account rather than a cash account because in options trading, there is a margin involved, as we have seen above. Because this poses a higher risk for the broker – in case you can’t settle your debts – these deals can only be done in special margin accounts and not cash accounts.

When you display any broker’s profile page on the CME list above, you will see on the right hand side this broker’s specialties (a list of industries and/or financial products). As of this articles publication (Nov. 24, 2020), only one broker has added Bitcoin to his list of specialties: Level Trading Field LLC . However, this does not mean that the other brokers won’t handle Bitcoin futures. We expect that more of them will adopt this specialty as soon as Bitcoin futures are on the market.

Crypto sources: Where to learn more

In this article, we have covered the basics of Bitcoin futures trading. However, this is just a small part of everything you need to know to become a well-rounded, successful crypto trader. Where can you go to learn more? We have evaluated a few sources for you:

“Trading Cryptocurrency” Course

This course by the ChartGuys “covers topics ranging from market psychology to executing a trade”, as the ChartGuys themselves say. This is a paid course ($149) – however, even The Merkle thought that it is worth its money . It covers long term as well as short term investment strategies, and the psychology of investing as well. Click here to visit the course .

“Beginners’ Bible” Book

If you prefer to read about cryptocurrency investing instead of doing a video course, we recommend this book: “ Beginners’ Bible – How you can make money trading and investing in cryptocurrency like Bitcoin, Ethereum and altcoins ”.

The book is geared explicitly towards beginners – it includes a step-by-step tutorial to setting up your wallet and buying, selling and (important!) profiting from cryptocurrencies. If today you don’t know the difference between Bitcoin and Blockchain, tomorrow you may be a fairly sophisticated investor already by reading this book.

“Crypto News” YouTube Channel

Finally, if you’ve understood the basics, but want to keep up to date in the field of cryptocurrency investing, we recommend Crypto News on YouTube . It was founded in early 2020 and has since then helped thousands of viewers investing in a smart way. The channel currently has more than 13.000 subscribers.

Crypto News posts new content almost daily, so check back often.

Conclusion

The CME Group, as one of the most well-known and respectable exchanges in the traditional fiat economy, is introducing Bitcoin futures most likely in the middle of December. They are not the only ones though. The Chicago Board Options Exchange (CBOE), the largest US options exchange, is planning a similar product .

These developments are expected to not only further rally the price of Bitcoin, but also open the doors for more traditional investment opportunities based on cryptocurrencies, such as a Bitcoin exchange-traded fund (ETF) . ETFs are currently very popular investment products for beginning and advanced investors because they charge low fees and usually have low volatility. Because high volatility is one of the factors preventing conventional investors from entering the crypto market, products such as these could offer them the best of both worlds.

Bitcoin Trading

What is Bitcoin

Bitcoin is the world’s first digital currency and it is expanding in popularity worldwide. With the MetaTrader 4 and MetaTrader 5 platforms you can trade this rapidly growing currency against the US Dollar 24/7. Many traders prefer to trade Bitcoin derivatives due to this asset’s highly volatile nature, which makes it ideal for CFD trading.

How to Trade Bitcoin CFDs in 4 Easy Steps

  1. Open a trading account with AvaTrade
  2. Fund your account
  3. Fill in your preferred investment amount
  4. BUY (go long) or SELL (go short) Bitcoin

AvaTrade is an industry-leading broker with some of the best trading conditions available, including the lowest crypto spreads on the market.

Want to join the vibrant Bitcoin Market? Open a trading account with AvaTrade now!

Why Trade Bitcoin with AvaTrade

  • Uncompromised Safety – With six regulatory authorities and segregated accounts, your money is protected at all times.
  • Many Cryptos to Choose From – Trade on the wide variety of cryptos available on our trading platforms.
  • No Hidden Fees – We offer zero commissions and no bank fees on transactions!
  • Bitcoin Never Goes to Sleep – AvaTrade is one of the few brokers offer around-the-clock service and support in 14 languages.
  • Generous Leverage – Increase your initial capital with generous leverage and get far more exposure to trade than your account balance. Up to
  • Limit Your Risk – You can preset profit and loss levels by using stop losses or take profit limits when you trade. Determine the maximum amount you are prepared to risk when speculating on the price, or set a price at which you want to take profits. Future orders like Buy Stops and Buy Limits are also available.
  • Trade Cryptos Against Fiat Currencies – Unlike many exchanges out there, who are restricting their clients to trade only Crypto to Crypto, our clients can trade Cryptos against Fiat currencies (USD, EUR, JPY etc.), as well.

Bitcoin’s Rise to Prominence

Around 2008, Satoshi Nakamoto founded the first ever cryptocurrency, Bitcoin. At the time, a paper explaining its mechanics and the ideology behind it, was published through the Cryptography Mailing List.

The first Bitcoin software client was released in 2009, and Nakamoto collaborated with many other developers on the open-source team, never revealing his identity. By 2020, the enigmatic Bitcoin founder had disappeared. His peers then, understood how valuable this cryptocurrency was and worked feverishly to develop it to its maximum potential.

By October 2009, the world’s first Bitcoin exchange was established, and by November of that year 4 million Bitcoins had been ‘mined’. At the time, $1 was the equivalent of 1,309 Bitcoin – a fraction of a penny. Considering how widely Bitcoin fluctuates, that was a real steal: it hit the $10,000 mark within eight years.

And so, the rise of the Bitcoin begun…

Open a trading account with AvaTrade today and start trading Bitcoin easily and securely!

The maximum accumulated position size for Bitcoin is 100 BTCUSD (10 LOTS), details in our Conditions and Charges page.

Bitcoin was the first digital currency to be created. It is also the most respected, capitalised and traded cryptocurrency in the world. Cryptocurrency trading allows for maximum yield when it is volatile, due to its many ups and downs. This is precisely the reason global traders enjoy Bitcoin trading.

The media plays a big part in Bitcoin’s volatility. Whenever a breaking story surfaces, Bitcoin starts to fluctuate and traders have the opportunity to cash in. History has shown that Bitcoin traders and speculators routinely push this digital currency to the forefront of CFD trading.

It is increasingly being used as the preferred payment option for merchants, money transfers and trading purposes. Bitcoin enjoys widespread popularity as a financial trading instrument, despite no association with governments or central banks.

Bitcoins are mined with powerful computer hardware and software. A maximum of 21 million Bitcoin will be available, after which no further bitcoins will be produced. The algorithm which governs the production of Bitcoin limits the quantity that will be produced, and the rate at which they will be produced. It is a finite commodity – there is a fixed amount, and that ensures that greater demand will always prop up the price. In this way, it is similar to other finite commodities such as crude oil, silver, or gold.

Bitcoin in the News

  • November 2020 – WordPress started accepting bitcoins
  • July 2020 – Launching of a joint project in Kenya, linking bitcoin with M-Pesa, a popular East African mobile payments system.
  • September 2020 – TeraExchange, LLC, received approval from the U.S. Commodity Futures Trading Commission to begin listing an over-the-counter swap product based on the price of a bitcoin, marking the first time a U.S. regulatory agency approved a bitcoin financial product.
  • March 2020 – The Cabinet of Japan recognised virtual currencies like bitcoin as having a function similar to real money.
  • August 1, 2020 – First fork in Bitcoin was created: Bitcoin Cash
  • October 24, 2020 – The second fork in Bitcoin was created: Bitcoin Gold
  • December 10, 2020 – Cboe Futures Exchange (CFE) starts offering Bitcoin futures trading
  • December 28, 2020 – Third fork in Bitcoin created: New coin on SegWit2x chain called B2X

Need Help Trading Bitcoin?

AvaTrade offers you the opportunity to Buy (go long) or Sell (go short) on all Bitcoin trades. This service is available to you 24/7. You can use your preferred trading strategies to buy or sell Bitcoin regardless of which way the currency is moving.

We encourage you to learn more about Bitcoin trading by visiting our Trading Conditions & Charges page.

Please note: The cryptocurrencies market’s high volatility offers endless trading opportunities.

How to Trade Bitcoin (And If You Should)

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This newsletter comes from the future.

There’s a digital gold rush sweeping the globe as investors try to cash in on Bitcoin, the notoriously volatile cryptocurrency. Getting involved yourself is easier—and riskier—than you think.

As with any exchange or speculative market, trading in Bitcoin is a risky venture that could cost you real money—and lots of it. So the most important advice is to proceed with caution. If you’re game, though, here’s what you need to know to get started.

How Bitcoin Works

Bitcoin is a currency much like any other, albeit digital. It can be saved, spent, invested, and even stolen . The rise of Bitcoin, the most widely circulated cryptocurrency, began in 2009 by someone (or someones) using the alias Satoshi Nakamoto. It came to prominence earlier this year when its value suddenly jumped 10-fold from $2 to $266 between February and April, with a peak market valuation of more than $2 billion.

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A TV Anchor Tries to Gift Bitcoin On Air, Is Immediately Robbed

This past Friday, Bloomberg TV anchor Matt Miller took an on-air opportunity to give the gift of…

As a cryptocurrency, Bitcoin is generated through the process of ” mining “—essentially using your computer’s processing power to solve complex algorithms called “blocks.” You earn around 50 Bitcoins once a block has been decrypted. The catch? Depending on how powerful your CPU is, solving a single block can take a year or more. Another means of obtaining Bitcoin is to simply buy it, exchanging physical currency for digital at a Bitcoin exchange like Mt. Gox or Bitstamp , or through a service like BitInstant .

Digital Drills: The Monster Machines that Mine Bitcoin

Bitcoin! It’s everywhere right now. Its value is dropping, spiking, dropping again. More and more…

How Bitcoin Exchanges Operate

The simple answer is: just like physical currency exchanges. You’re essentially buying one currency with another. The relative value of a nation’s physical currency is a reflection of the country’s economic and financial health, especially since we moved off of the gold standard. The U.S. dollar, for example, is worth more than that of the Mexican peso due to the discrepancies between the two countries’ economies—therefore you can buy lots of pesos for very few dollars (the dollars being relatively more valuable).

The same holds true for Bitcoin, except that its value comes not from an industrial economic base but from the work performed by your computer. That means it can be traded like a commodity, no different than pork bellies or Florida oranges.

That said, exchanges like Mt. Gox act as intermediaries for currency transactions, converting wealth from Bitcoin to US dollars to other national currencies, back to dollars or Bitcoin. And that’s how you make money. By exploiting the constantly shifting relative values of various currencies, savvy investors can make a tidy sum simply from moving money around these markets, in a process known as arbitrage. But they can lose it just as easily.

How to Become a Player in the Bitcoin Market

So, even knowing the risks involved you still want to foray into the Bitcoin Market. There are a number of ways of doing so, each with their own strengths and weaknesses.

Mine It: The easiest—but slowest—way into Bitcoin is to mine it. Set up a dedicated computer to do nothing but decrypt Bitcoin blocks , install some Bitcoin-mining software and let it do its thing. Again, doing so on a mid-range desktop could take upwards of a year or more to fully decrypt a single block. That’s not going to be worth the time or effort.

If you want your coins faster, it’s going to cost you; purpose-built mining rigs start around a few thousand, like the $2,400 128 GHs Bitcoin Miner from Advance Mining Technology, and only go up from there. You can also build your own rig, however mining cards such as the Monarch BPU 300 C from Butterfly Labs aren’t much cheaper.

Basically, mining Bitcoin has gotten to the point that it’s almost impossible to recoup your investment. So maybe you’re better off not going it alone.

Gang Up: You can also join a mining pool. These Internet-connected computer clusters break the work of a block into pieces that are shared among the group. Once the block is decrypted, the resulting Bitcoin is doled out according to how much work your rig contributed. There are a number of variations to this basic model, however, depending on how the pool is set up. Bitcoin.it has an expansive listing of popular mining pools with explanations of how each operates, pays out, and taxes users for their participation.

The level of security among pools also varies greatly, from simply requiring a BTC username to requiring a 2-Step Google Authenticator code before paying out. Luckily, given the anonymous nature of Bitcoin, you generally won’t have to include any personable, stealable, information. Still, money and complete strangers can be a particularly combustible situation.

Play the Markets: The fastest—but riskiest—method is to go straight to the markets. So, say, for Mt. Gox , the reputed “world’s oldest and largest Bitcoin exchange,” you first have to sign up, create a user name and then respond to the confirmation your email verifying your address.

Then the system will ask that you scan and send confirm your real address and residence there for the last six months, and provide a government-issued photo ID. You will not however, have to include sensitive information such as your SSN.

Then it’s simply a matter of depositing funds into your account and carefully watching the market for opportunities to make money. Like any exchange, Mt. Gox does charge a fee on your transactions, ranging from .60 percent per trade down to .25 percent per trade, which the company uses to support the business as a whole:

But, once again, be warned. Just because it’s a digital currency doesn’t mean you won’t lose real cash money trading in it. And given that the current Bitcoin market is more volatile than a bag of plutonium nitrate, multi-explosive, sound seeking projectiles , you stand a very good chance to lose a lot of money, especially if this is your first foray into day trading. So unless you have cash to burn or you’re already a grizzled day trading veteran, you might want to take one more look at mining after all.

Risks and Rewards

So that’s how you make your foray into Bitcoin. It’s important, though, to first ask yourself if you really want to in the first place.

For conventional currency markets trading in the monies of stable, profitable countries, the fluctuations within the value of each currency is measured in fractions of a penny. Bitcoin values, on the other hand, rise and fall dramatically throughout each trading day, jumping in whole dollar amounts. This means that if you don’t have your act together and place a transaction order at the right time, you will lose magnitudes more cash than you would have trading dollars for yen. The value of Bitcoin as a whole, for example, dropped more than 50 percent over the 36 hours after China banned the cryptocurrency. A lot of speculators lost their shirts during that day. And it will almost certainly happen again.

What’s more, unlike traditional arbitrage play, the inherent volatility of the BTC market all but forces investors to offload their coins as quickly as possible to avoid getting caught in a crash. However only when investors hold onto their digital commodities for longer periods of time will the market actually stabilize. It’s a catch-22. And without commercial institutions like banks, which have huge reserves of liquid capital they can rely on, individual investors often can’t afford to just sit on their Bitcoin and wait for a rainy day.

Conversely, if one were to take the super-long view and, say, bought a few shares in 2020 at a sub-$100 price point, even with Bitcoin dropping half its peak value, that investor would still theoretically make over a 600 percent return on his investment just by waiting. Granted, the sub $100 days are likely now over, what with the currency’s new-found stardom so we’ll have to wait and see how the market plays out.

Even those big hits, though, come with big tax implications. As Forbes contributor Cameron Keng points out :

Bitcoin is taxable, whenever a taxable event occurs. A taxable event is whenever you cash out your bitcoin for any fiat currency (dollars, euros and etc.) or when you trade a bitcoin for anything (bartering). In taxation, bitcoin is best understood as an “asset.” Whenever you hold an asset, it can increase or decrease in value. When you trade the bitcoin for fiat currency, then you’re trading an asset for dollars. It works the same way as when you trade gold bullion for dollars.

Bartering or exchanging bitcoins for anything is also a taxable event. For example, Bob trades 1 bitcoin for a year’s worth of hugs. Bob traded or bartered 1 bitcoin for a year’s worth of hugs or a service. This is a taxable event. The same is true, if you traded 1 bitcoin for a tangible or intangible object. This even applies if you’re trading 1 bitcoin for another bitcoin.

Simply put, if Bitcoin is to be treated like legitimate currency, it’s going to be taxed like legitimate currency.

Nor should you assume that your Bitcoins are completely secure either. As Mark Vankempen, senior advanced R&D engineer at LogRhythm, explained to the IT Business Edge :

A BTC wallet is like a real wallet filled with cash. You should never keep all your eggs in one basket and the BTC wallet is no different from this age old idiom. So far there is no air tight solution to keeping your BTC safe and secured. the following action items that can help protect your BTC investment: Backup and encrypt your wallet, make multiple copies of your backup, store them in more than one secure location and finally, don’t keep all your BTCs in one wallet.

Don’t pull a Bitomat.pl. This former mining company lost 17,000 BTC (worth about 14.5 Million USD) during a routine maintenance restart when the server hosting the company’s digital wallet ate itself.

The Bitcoin’s meteoric rise in value and the relatively low risk of being caught stealing it have also combined to make the currency a huge target for cyber criminals. Smaller online exchanges that have skimped on security systems can be hacked. The Sheep Marketplace , for example, had 96,000 Bitcoins (worth $220 million) stolen earlier this year, as did GBL and Tradefortress . Criminals also routinely target internet-connected computers that store individual Bitcoin wallets, attacking them with everything from malware and phishing tactics to old-fashioned social engineering. And as recently as last November, thieves stole nearly a million dollars worth of Bitcoin from Bitcoin Internet Payment System (BIPS), a Denmark-based Bitcoin payment processor .

In short, even if you trade Bitcoin brilliantly, you’re still susceptible to giant losses the good ol’ fashioned way: theft.

What’s Next?

Regulation. It’s the only way to bring the BTC markets under control, push out the criminal element, and make them safe for commercial interests to enter. While some investors see the upcoming regulatory crackdown as a death knell of the Bitcoin, it should actually do the opposite and finally reign in the currency’s wild value fluctuations. Just as the crash of the poorly monitored sub-prime mortgage market led to the Great Recession, allowing the Wild West days of Bitcoin trading to continue will only lead to more and bigger crashes.

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