Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency Trading => Topic started by: CebuBitcoin on September 01, 2018, 08:31:54 AM
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Hey Friends,
Do any of you trade Forex using Bitcoin? 1broker.com is nice, I also was looking at simplefx. My concern is this article from investopedia, which basically says how you can make profit in your forex trade, but due to price movement of btc you can lose even with a winning trade.
Here is the article: Investopedia https://www.investopedia.com/articles/forex/081815/benefits-risks-trading-forex-bitcoin.asp#ixzz58HVMSB2q
Here is quote from article:
"Now, let’s move on to an example of a forex trade using bitcoin. First, you open a forex trading account with a broker who accepts bitcoins (like AvaTrade, eToro or Liteforex). You then deposit 2 bitcoins from your digital wallet to the forex broker’s digital wallet. Assuming the current bitcoin to U.S. dollar rate is 1 bitcoin = $500, your deposit of 2 bitcoins is equal to $1,000. Now, assume that you want to take a position in British pounds. If the exchange rate is £0.5 = $1, you will receive £500. After some time, the GBP/USD rate changes to 0.45, and you square off your position to get $1,111.11 in your trading account. You have made a tidy 11.11% profit and you are ready to cash out. However, suppose by this time the bitcoin to U.S. dollar rate has changed to 1 bitcoin = $560. When you withdraw your money in bitcoins, you receive ($1,111.11/$560) = 1.984 bitcoins."
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It looks like 1broker bases forex trades in terms of btc, so the btc price is irrelevant as you are paid profits and losses in btc.
Does anyone know if SimpleFX is like this? Or any other good forex brokers that are BTC based
Thanks
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Bitcoin and forex have many similarities, which can be used as an investment tool. But in forex trading is more risky because you can lose all your money if your analysis is wrong. While in bitcoin, you will not lose all money because bitcoin will not reach zero.
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Hey Friends,
Do any of you trade Forex using Bitcoin? 1broker.com is nice, I also was looking at simplefx. My concern is this article from investopedia, which basically says how you can make profit in your forex trade, but due to price movement of btc you can lose even with a winning trade.
Here is the article: Investopedia https://www.investopedia.com/articles/forex/081815/benefits-risks-trading-forex-bitcoin.asp#ixzz58HVMSB2q
Here is quote from article:
"Now, let’s move on to an example of a forex trade using bitcoin. First, you open a forex trading account with a broker who accepts bitcoins (like AvaTrade, eToro or Liteforex). You then deposit 2 bitcoins from your digital wallet to the forex broker’s digital wallet. Assuming the current bitcoin to U.S. dollar rate is 1 bitcoin = $500, your deposit of 2 bitcoins is equal to $1,000. Now, assume that you want to take a position in British pounds. If the exchange rate is £0.5 = $1, you will receive £500. After some time, the GBP/USD rate changes to 0.45, and you square off your position to get $1,111.11 in your trading account. You have made a tidy 11.11% profit and you are ready to cash out. However, suppose by this time the bitcoin to U.S. dollar rate has changed to 1 bitcoin = $560. When you withdraw your money in bitcoins, you receive ($1,111.11/$560) = 1.984 bitcoins."
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It looks like 1broker bases forex trades in terms of btc, so the btc price is irrelevant as you are paid profits and losses in btc.
Does anyone know if SimpleFX is like this? Or any other good forex brokers that are BTC based
Thanks
I do not like forex, huge spreads, dishonest brokers, it is very hard to work, go to futures) everything is honest and open, + there is no spread
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In general, there are several risks to forex trading. One of them is price votality in the forex market. Besides that the use of leverage, forex brokers and the psychological co-trader of the trader. Whereas in bitcoin is a little more risky, because in addition to being traded, bitcoin is a digital asset that has no lower risk.