Trading bitcoin in the UK When looking to trade bitcoin, there is an alternative to using exchanges to own and store the currency. Instead, you can trade on bitcoin price movements via spread betting and CFD trading in the UK. You take a position on the price of the bitcoin market to rise or fall, based on our ‘buy’ and ‘sell’ prices. Trade Bitcoin Exchange Rates. Bitcoin is now being quoted alongside major forex pairs. So BTCUSD for example, is the rate of exchange for Bitcoin and the US dollar. Other pairs can be traded in the same way. A lack of correlation creates interesting diversification opportunities too. Trade with Bitcoin. 28 rows · Jan 02, · There are several ways to buy Bitcoin with cash in the UK, including the .
Trade in bitcoin ukHow to Trade Bitcoin UK | Learn Bitcoin Trading | CMC Markets
Traders simply take a position on how they predict its price will move in relation to the few major currencies brokers pair it with as a tradable instrument. Brokers who offer bitcoin trading base their prices on the underlying market made available to them by the major exchanges and market-makers with which they trade.
There are several reasons why bitcoin is an attractive instrument to trade. This is particularly attractive for non-professional traders who have day jobs and limited time to follow markets and take trading positions during the working week.
High volatility is another reason why bitcoin is popular with traders. Double digit moves during particularly volatile periods are also not uncommon, meaning traders can potentially make much larger profits on bitcoin than with other tradable currencies.
The flipside of this is of course that big losses can also be potentially sustained if a trader is wrong. Non-correlation with other financial markets is another plus for bitcoin as a tradable instrument.
Because it is not connected to any one local economy its value is not impacted by the same geo-political and localised economic events. This makes it a good hedge against other positions traded. The other disadvantage to trading bitcoin is that its price movements result from different factors than those which impact fiat currency fluctuations.
There is now a significant degree of choice when it comes to where to trade bitcoin. Now most of the big established brokers have also introduced bitcoin pairs, opening up the market. For those who already have a CFDs or spread betting trading account, there is a good chance your broker now offers bitcoin trading and if not will likely do so in the near future.
As mentioned, brokers are now racing to be at the head of the queue for cryptocurrency traders. There are now brands that will accept deposits in Bitcoin. IO is noteworthy for being one of the few exchanges that allow you to buy Bitcoin with credit cards while charging a modest fee of 3. It takes about two days from the funds to be available but its relatively low rate seems to make up for the delay. IO also has four levels of limits and liquidity depending on the number of cryptocurrencies you want to buy and how much verification you are willing to provide.
Bitcoin is here to stay even though critics are erroneously underestimating its disruptive potential on business, finance, and the economy. Granted, Bitcoin still lags the GBP and other fiat currencies as a payment mechanism, means of exchange, or store of value. In the last 10 years, Bitcoin has caused governments, financial institutions, and businesses to start rethinking the idea of money— especially in the digital economy.
Bitcoin spread betting is one of our most popular products. Spread betting is a leveraged product , meaning you only need to front a small amount of capital as a deposit to cover the full price of the trade.
This gives you greater scope to open positions in other financial instruments, spreading your risk. As a leveraged product, spread betting profits and losses are amplified as they are based on the full trade value. To learn more about spread betting, consult our guide on the best spread betting tips and strategies. However, it can only be used by customers who are residing in the UK or Ireland.
CFD trading is a derivative product based on financial leverage, similar to spread betting. However, CFDs require you to pay capital gains tax. For a comprehensive explanation, visit our article on what is a contract for difference. This could be particularly useful in volatile markets, where prices are subject to regular and sometimes sudden movements.
What is the right bitcoin trading strategy for you? It largely comes down to your level of experience, free time, capital invested and daily discipline.
Everyone has different goals when trading bitcoin and some people will re-structure their responsibilities around trading, whereas others will want trading to work around their responsibilities.
Day-trading bitcoin refers to the buying and selling of bitcoin in the same trading day. The strategy involves placement of long and short trades in an attempt to capitalise on the speculation of price movements. A day trader will close all of their positions at the end of the trading day, ensuring no positions are open overnight. Day trading is perhaps the best option for traders who are looking to build a career trading markets. It can be very technical, takes a lot of time and has a steep learning curve.
However, for those who are very dedicated, and have the focus to regularly analyse charts, this may be for you. Swing trading is about buying and selling bitcoin based on market movements, and holding on to that position until the trend slows down or you witness a trend reversal. Unlike day trading, positions can be held from a couple of days to a few weeks. Utilising technical signals such as Fibonacci retracement and moving average convergence divergence MACDs , a swing trader makes their profit from capitalising on trends the moment they form.
Swing traders generally experience more risk in comparison to day traders, as the positions they hold are open for longer periods than day traders. However, this trading method often requires less time commitment as trades typically last for several weeks. Scalping bitcoin is a trading strategy that involves placing frequent trades over extremely short periods, sometimes just minutes long. Scalping traders attempt to capitalise on small market movements. When scalping bitcoin, you should always have a clear exit strategy, as one trading loss could counteract any small gains you have made.
With discipline, scalping bitcoin can be a lower risk trading strategy. This is because spreading your capital over a large number of small trades diversifies your capital risk. The platform you trade on can make a huge difference to your ability to analyse and execute trades efficiently.
Our platform won the award for Best Platform Features, and was ranked highest for charting, based on user satisfaction among spread betters, FX and CFD traders in the Investment Trends report1. You can trade on the go with our powerful mobile trading applications for iPhone, Android and iPad. Trade on bitcoin prices from the comfort of your phone, with over 40 technical indicators and full order ticket functionality. Traders often use algorithmic trading or trading automation in forex markets.