But even though talk about “trading pairs” just like forex traders, trading bitcoin is not like forex in important ways. Before you consider whether to trade forex using bitcoin, it's helpful to understand how a conventional forex trade works. If the prices still keep going down, you’ll realize that you should’ve sold your Bitcoin. Most of the time, your decisions on Bitcoin trades will only come from speculations, which is high risk. As mentioned, when trading Bitcoin, prices can quickly go very high or very low. Bitcoin is a digital currency, so investors may think of it in terms of the foreign currency exchange (forex) market. But the tradeoff is essentially adding a third currency to what was a trading pair. If you’re familiar with forex trading, trading bitcoin is most like “spot” trading a currency pair. Bitcoin’s legendary price volatility can excite many investors and traders—especially day traders. Mostly, those ways have to do with the fact that bitcoin was invented in 2008, not centuries ago like most forex-traded currencies. Bitcoin’s legendary price volatility can excite many investors and traders—especially day traders. Having a cut loss target will prevent your emotions from getting in the way. To prevent yourself from making impulse decisions when high volatility occurs, it’s very important for you to determine your limits. is that you have to determine and set a price that you’re willing to cut loss or take profit before the trade.where can i buy bitcoins with paypal If you want to become a trader as well, here are some Bitcoin trading tips you need to consider in order to be successful. However, the fact that the forex market is decentralized and that bitcoin is considered to be a decentralized digital currency does not mean that the two are equivalent. The key distinction is that, though forex exchanges might be decentralized, the currencies themselves are backed by central banks in the countries that issue them. In forex trading, dealing in a decentralized currency that offers global transactions with no fees is an advantage. In addition to these differences, experts like Investopedia recommend trading bitcoin at a regulated cryptocurrency exchange, such as Gemini Trust, rather than a traditional forex exchange, because cryptocurrency exchanges understand the market and security requirements better than forex markets. Because of the popularity of cryptocurrency, a market was born to specifically trade cryptocurrency. Forex is far-and-away the world’s largest market, with daily trading volumes around $6.6 trillion, according to the Before you even start trading, don’t use all of your savings to trade Bitcoin. Because of the popularity of cryptocurrency, a market was born to specifically trade cryptocurrency. On the other hand, if you don’t have any target price for taking your profits, you’ll start becoming greedy as the prices keep going up.