Bitcoin Trading Platforms For Beginners
Bitcoin is a highly volatile cryptocurrency traded on cryptocurrency exchanges. It is the cryptocurrency used in the Bitcoin network, which is an online payment network, to enable peer-to-peer payments using a distributed network based protocol. The trader can trade Bitcoin directly buying and selling the cryptocurrency, but they may also trade it as a CFD.
When trading a CFD, the trader does not own any cryptocurrency and thus does not need a wallet to store it, can go long or short and use leverage (increasing leverage increases risk). Trading a CFD lets the trader use CFD brokers, which have extensive tools for online trading, and thus the trader can access their CFD trading platforms, typically for free.
There are a number of routes a beginner trader can take, but one is learning about trading and using a demo account to practice trading Bitcoin CFDs. The trader can get a sense of the volatility of this market, that is its tendency for marked changes in value. There are complex fundamental influences on Bitcoin, and the trader can keep their eye on cryptocurrency related news.
However to trade Bitcoin, the trader may use the charting tools used to trade other markets, that is the trader could apply technical analysis and related chart based analytical approaches. All analysis may produce inaccurate projections vs the actual outcome, but it does provide a rationale for making trades. Robot trading can also be used, but trading with robots can be seen as an advanced strategy, perhaps best used when the trader better understands trading (as it seeks to automate this process) and the market being traded.
The core tool used by traders is the online trading platform. Beginner traders may wish to consider a user friendly platform designed for the human trader, though they can also take time to work out how to use any platform, using a demo account.
Bitcoin Trading Platform For Beginners
The choice is Deriv's user friendly Deriv X platform along with its offering of MetaTrader 5 (MT5). Both platforms can be used on a demo account, which is a way to start trading market without risk. Each platform offers Bitcoin CFDs. When trading a CFD, the trader does not own any Bitcoin. The trader can use the wide range of tools provided on both platform, including technical analysis tools.
