BTCUSD Trading Online
The online Bitcoin trading market is an international market that is accessible to traders who want to invest and trade in Bitcoin. Traders can access this online Bitcoin trading market through online Bitcoin brokers. These online brokers also provide other financial instruments that can be traded online and Bitcoin is one of these. These brokers also provide cyptocurrency and Forex currency trading services, metals trading such as Silver and Bitcoin, Stock Indices trading and also Oil trading.
When it comes to trading Bitcoin online, Bitcoin is traded against the USD dollar currency. This means that a trader will exchange US Dollars for Bitcoin or Bitcoin for US Dollars.
Bitcoin trading symbol in the online trading market is denoted as BTCUSD - traders wanting to trade Bitcoin will look for the symbol BTCUSD that is used to represent Bitcoin.
Bitcoin Symbol - BTCUSD
Some online brokers that offer Bitcoin may also choose to represent this Cryptocurrency as just Bitcoin in their trading platforms, but as a trader know that when you trade Bitcoin in the online market it is denoted as BTCUSD.
The Bitcoin symbol BTCUSD, the first three letters represent Bitcoin and the last three represent the US Dollar.
How Bitcoin is Traded?
Trading in Bitcoin is the exchange between Bitcoin and US Dollar. When a trader buys Bitcoin, the trader will buy Bitcoin Cryptocurrency using US Dollars, when a trader sells Bitcoin they will exchange Bitcoins for US Dollars.
The exchange of this transaction is done through an online Bitcoin broker.
Online Bitcoin trading is done through contracts. A trader will buy a contract of Bitcoin and sell a contract of Bitcoin. This contract will represent the same value as physical Bitcoin. Traders buying and selling Bitcoin online will do so through contracts. The profits or losses made from transaction of buying or selling Bitcoin will be calculated from these contracts.
The main reason why trading is done through contracts is so that traders can buy & sell their Bitcoin at any time with ease between them and other Bitcoin traders trading this market.
The Bitcoin contracts traded in the online market are therefore more liquid than when a trader wants to transact physical Bitcoin. Online Bitcoin trading therefore transacts more volume than physical trading of Bitcoin trading. In online Bitcoin traders can buy or sell bitcoin at any time.
The price of Bitcoin in the online Bitcoin market is also the same price as that of physical Bitcoin.
Therefore as a trader wanting to sell their physical Bitcoin - the trader will check the prices of Bitcoin online to know at which price to buy or sell their Bitcoin. A trader may also choose not to buy physical Bitcoin using a Bitcoin Wallet and instead buy contracts of Bitcoin that will represent the same value as that which they would have bought of physical Bitcoin using a Bitcoin Wallet.
One advantage of buying Bitcoin contracts online is that a trader can close their Buy or Sell Bitcoin contracts at any time when the online Bitcoin market is open with a lot of ease because there is a lot of liquidity in the online Bitcoin trading market which means that when the market is open there is always someone available that a trader can exchange their Bitcoin contracts with.
These Bitcoin contracts are provided by the Bitcoin brokers. These contracts are denoted by the symbol - BTCUSD.
Another advantage of trading Bitcoin online is that a trader can trade this Cryptocurrency online from anywhere in the world. Bitcoin trading is globally available for anyone to trade through the online Bitcoin brokers.
Online Brokers
Online Bitcoin brokers are companies that connect the retail investors to the online Bitcoin trading market. These brokers provide traders with trading software and traders will open trading accounts with the broker and use these trading accounts to login to the trading software and place Bitcoin trades in the online Bitcoin trading market using this software.
The profits and losses that the trader will make from their Bitcoin trading activities will then be credited and debited to this trading account. The account balance and statement of profits and losses will be displayed on this platform. A trader can then withdraw profits from this account.
Bitcoin Trading Account
This is the account that a trader will use to trade Bitcoin. Traders are required to open a Bitcoin trading account and deposit money and then start trading Bitcoin online.
Bitcoin brokers offer trading platforms which are designed to stream live price quotes of Bitcoin BTCUSD Cryptocurrency to clients. Traders can then execute trades based on these price quotes from their trading accounts.
Leverage
In Bitcoin trading a small deposit can control a much larger trade and this is called leverage. Leverage helps traders to make bigger profits while at the same time keeping their invested capital to a minimum amount so as to reduce their risk.
Leverage is what makes the Bitcoin trading market popular among small retail investors because traders can invest in Bitcoin by using little of their money and borrowing the rest.
Demo Account
Bitcoin demo trading account is a practice account meant for practice trading and learning how to trade Bitcoin using the online MetaTrader 5 platform. The money is virtual and not real and this account is meant to train beginners who want to start trading Bitcoin. Traders can practice trading on this account and they can then determine if Bitcoin trading is an investment they want to make or not.
Live Account
A live Bitcoin trading account is the account that a trader opens when they have practiced long enough and they have decided that Bitcoin trading is a profitable investment for them. With this account a trader will deposit real money with their online Bitcoin broker and start making trades in the online Bitcoin trading market.
