Trading Bitcoin – Recommendations & Tips
Our recommendation: With a Bitcoin CFD, you can participate in the Bitcoin price without having to buy Bitcoin yourself.
Product recommendation: With Plus5005 (CFD Service. Your capital is in danger) you can buy and sell CFDs on Bitcoins. Alternatively, you can benefit from Bitcoin performance via ETPs or Structured Products, for example with the CoinShares Physical Bitcoin ETP, the new Bitcoin Tracker certificate from Leonteq*.
Tip: You can also buy “real” Bitcoin on a Bitcoin marketplace or via a Bitcoin exchange, for example Bitpanda*. With a customer account at Swissquote*, you can trade Bitcoin and 25 other cryptocurrencies. With Bison*, the Stuttgart Stock Exchange also offers a very attractive alternative through which you can purchase BTC. With Kriptomat, which is fully licensed in the EU, you open an account in a few seconds and trade all important cryptos.
Here you can trade Bitcoin CFDsProvidersOpportance
Demo account opening in 15 minutes. Deposit by credit card or PayPal possible.
CFD Service. Your capital is in danger.Buying Bitcoin – The most important cryptocurrency
Bitcoin (BTC) is the best-known cryptocurrency ever and still by far the most important. In terms of market capitalization, Bitcoin is clearly ahead of the competition, even in terms of performance, no other digital currency Bitcoin can match the water: With over 700 billion US dollars , the market capitalization of Bitcoin in May 2022 is far ahead of that of Ethereum (around 325 billion US dollars), Cardano (around 25 billion US dollars), Binance Coin (around 60 billion US dollars), Tether (80 billion US dollars) and Ripple (28 billion US dollars).
The price development of the most important cryptocurrency is also unique: In 2016 alone, the Bitcoin price climbed by more than 125 percent, in 2017 the Bitcoin reached highs of almost 20,000 US dollars. After the corona crash in March 2020, the price of the most important digital currency climbed upwards for months. The Bitcoin value multiplied to at times just under 70,000 US dollars. From its all-time high in November 2021, the price slipped and has been in the range of 36,000 to 48,000 US dollars since the beginning of 2022. If you trade Bitcoins and have a close eye on the Bitcoin price, you can make a fortune with a little luck. In the past, the most successful cryptocurrency made one or the other investor a millionaire.
Product recommendation: At Plus5005 (CFD Service. Your capital is in danger.) easily make deposits by PayPal and credit card, open a demo account in less than 15 minutes.High demand for “anonymous money”
Some analysts predict that Bitcoin will rise to $500,000 and more. As the “Blockchain and Crypoasset Pre-Event” at the beginning of April 2019 showed, more and more professional asset managers and institutional advisors want to recommend the blockchain and crypto currencies as an investment. Bitcoins are also gaining acceptance at more and more financial institutions. For example, the US investment bank JPMorgan launched its own cryptocurrency and in Swiss online trading, many customers can already shop with crypto currencies.
Bitcoins are no longer just nameless online coins with which computer nerds process anonymous purchases on the Internet. Bitcoin trading is popular with both private investors and speculators, the potential still seems great. Especially the recent large price movements are proof of this.
In El Salvador, the cryptocurrency Bitcoin has even been the official currency since September 7, 2021. This makes El Salvador the first country in the world where you can pay with Bitcoin. The Central American country expects the introduction to be a boost to modernization, because it will make transfers without bank accounts possible. In April 2022, Panama also passed a bill on the use of crypto assets.
Around the Bitcoin hype at the end of 2017, some critics saw Bitcoin as a risky investment and refer to the most important cryptocurrency as “hot air”.
Ultimately, the Bitcoin price is regulated by supply and demand. And the demand for anonymous money such as Bitcoin, Ethereum, Litecoin & Co. continues to rise strongly. The reasons for this are, for example, the forward-looking blockchain technology, the investments in Bitcoin and capital controls, which can be successfully circumvented with the help of crypto money. Bitcoin trading – investment for opportunity-oriented investors
In view of the performance and technical possibilities of online currencies, the interest in Bitcoin is growing more and more among many investors. If you want to buy Bitcoin and participate in the performance of the most important Internet currency, then there are several options for you – we have taken a close look at the advantages and disadvantages of each way. Trading Bitcoin with Bitcoin CFDs
Investors who are primarily interested in participating in the performance of Bitcoin can trade Bitcoins leveraged via a CFD broker. The demo account opening is particularly fast, deposits can be made by credit card, PayPal or bank transfer.
You can think of a Bitcoin CFD as a security that reflects the Bitcoin price. As an investor, you participate directly in the development of the Bitcoin price, but do not physically own the Bitcoin. If you want, you can still leverage the Bitcoin CFD. Note that CFD trading has been more regulated since August 2018.
A 1:1 participation without leverage is of course also possible. The biggest advantage of a Bitcoin CFD is that in the event of a sale, you can get your money back immediately and in full at any time. This is not self-evident: with various Bitcoin exchanges, there are daily payout limits, so a payout of your capital can sometimes take several days.
Our recommendation: If you want to buy or sell Bitcoin as a CFD, you can do so, for example, at Plus5005 (CFD Service. Your capital is in danger.) do. Plus500 offers credit card deposit and PayPal as well as a very fast demo account opening.
Of course, you can also use any other CFD broker of your choice. How to trade Bitcoin through a broker, we explain to you using the example of Plus500 in our simple step-by-step guide to buying Bitcoin.
Always trade only the money you can handle losing – CFDs are a speculative instrument just like Bitcoin.Sell Bitcoin CFDs
You can already set a so-called “stop loss” when buying Bitcoin CFDs. A stop loss automatically closes an open position as soon as the price drops to the level specified in the order. So you can limit your losses. Where exactly you want to set your stop loss, you have to decide for yourself. Especially when trading CFDs, the stop loss is usually relatively far from the entry price due to the high volatility. However, this can also lead to higher losses. However, if the stop loss is set too high, many investors are stopped too early. Another risk is that despite a stop loss, the position is not resolved by the broker in time. In this way, it could happen that investors suddenly realize a loss of over 300 euros despite a stop at a loss of 150 euros, for example.
This is where the guaranteed stop loss comes into play. Here, the broker guarantees the closing of the position exactly at the desired price and bears the closing risk for an order with a guaranteed stop loss. The broker must bear the cost of the deviations himself. In return, traders usually pay a fee for the guarantee. Whether the guaranteed stop loss function is offered and how high the fees are depend on the CFD broker.
Some providers also offer a “Close on profit” function. With this, investors can set a price level above the entry price at which the position should be closed in order to secure the profits.
Depending on the provider, it is also possible to sell not only the complete open position, but only a part. In this way, investors can minimize their risk.