Bitcoin currently trading at

How to trade bitcoin

Bitcoin is a popular and highly volatile cryptocurrency. Discover everything you need to know about trading bitcoin with the the No.1 CFD trading provider. 1

Call +61 3 9860 1799 or email helpdesk.en@ig.com to talk about opening a trading account. We’re here 24 hours a day, from 8am Saturday to 10pm Friday (UK time).

What is bitcoin trading?

Bitcoin trading is how you can speculate on movements in the cryptocurrency’s price. While this has traditionally involved buying bitcoin through an exchange, hoping that its price will rise in time, cryptocurrency traders are increasingly using derivatives to speculate on both rising and falling prices – in order to make the most of bitcoin’s volatility.

With IG, you can take a position on the price of bitcoin with financial derivatives like CFDs. This product can enable you to take advantage of price movements in either direction without taking ownership of the underlying coins – meaning you won’t need to take responsibility for the security of any bitcoin tokens.

Steps to trading bitcoin

Learn what moves bitcoin’s price

To get in on a surging opportunity or short the latest bubble, you first need to understand the factors that have an impact on bitcoin’s price:

• Bitcoin supply. The current bitcoin supply is capped at 21 million, which is expected to be exhausted by 2140. A finite supply means that the price of bitcoin could increase if demand rises in the coming years
• Bad press. Any breaking news which concerns bitcoin’s security, value and longevity will have a negative effect o n the coin’s overall market price
• Integration. Bitcoin’s public profile depends on its integration into new payment systems and banking frameworks. If this is carried out successfully, demand might rise which will have a positive effect on bitcoin’s price
• Key events. Regulation changes, security breaches and macroeconomic bitcoin announcements can all affect prices. Any agreement between users on how to speed the network up could also see confidence in bitcoin rise – pushing the price up

Pick a bitcoin trading style and strategy

How to day trade bitcoin

Day trading bitcoin means that you’ll open and close a position within one single trading day – so you won’t have any bitcoin market exposure overnight. This means that you’ll avoid overnight funding charges on your position. This strategy could be for you if you’re looking to profit from bitcoin’s short-term price movements, and it can enable you to make the most of daily volatility in bitcoin’s price.

How to trend trade bitcoin

Trend trading means taking a position which matches the current trend. For example, if the market is in a bullish trend, you’d go long and if the trend was bearish, you’d go short. If this trend started to slow or reverse, you’d think about closing your position and opening a new one to match the emerging trend.

Bitcoin hedging strategy

Hedging bitcoin means mitigating your exposure to risk by taking an opposing position to one you already have open. You’d do this if you were concerned about the market moving against you. For example, if you owned some bitcoins but were concerned about a short-term drop in their value, you could open a short position on bitcoin with CFDs. If the market price of bitcoin falls, the gains on your short position would offset some or all of the losses on the coins you own.

HODL bitcoin strategy

The ‘HODL’ bitcoin strategy involves buying and holding bitcoin. Its name derives from a misspelling of ‘hold’ on a popular cryptocurrency forum, and it is now often said to stand for ‘hold on for dear life’. However, this phrase shouldn’t be taken too seriously – you should only buy and hold bitcoin if you’ve got a positive outlook on its long-term price. If your research or trading plan indicates that you should sell your positions to take profit or limit loss, you should – or you could set stop losses to close your positions automatically.

Choose how you want to get exposure to bitcoin

There are a few different ways that you can get exposure to bitcoin:

Trading bitcoin derivatives with IG	Buying bitcoin through an exchange
Cost to get exposure to 1 bitcoin	Margin for retail clients is 50% of the total value of the coin	Full cost of the coin
Short selling	Yes	No – unless there is a willing counterparty
Regulation	IG Group is a FTSE 250 company, and IG international is licensed by the Bermuda Monetary Authority	No dedicated regulatory body in place
Execution	0.0014 second execution speed and access our unique deep liquidity	Dependent on exchange liquidity levels
Restrictions on funding and withdrawing	None, withdrawing or adding funds is free and instant	You may be charged fees and encounter restrictions on adding or withdrawing funds
Overnight funding charge	Yes	No

Trading bitcoin derivatives

Trading bitcoin derivatives with us means that instead of owning bitcoin outright, you’ll be speculating on its price with CFDs. As a result, you’ll be able to take a position on bitcoin’s price rising by ‘going long’ or falling by ‘going short’. Here are other benefits of trading bitcoin derivatives with us:

• Leverage and margin: CFDs are always traded with leverage, which means you’ll only have to put up a deposit – known as margin – to get full market exposure
• Deep liquidity: thanks to our large client base, our bitcoin market is very liquid. This means you’re more likely to have your orders filled at your desired price – even if you deal in large sizes
• Hedging: shorting with derivatives can be an effective way to hedge your portfolio and protect against market declines

The table below highlights the main benefits of CFD trading.

CFD trading
Main benefits	Ability to go long or short and is useful for hedging
Accessible to	All clients
Traded in	Contracts worth one bitcoin
Commission	Commission-free
Platforms	Web platform, mobile trading app and MT4

Buying bitcoin through an exchange

Buying bitcoin through an exchange is mainly for those who use a buy-and-hold bitcoin strategy. This is because buying through an exchange means that you’re taking direct ownership of bitcoin – with the expectation that its price will rise.

That said, there are some problems with buying bitcoin through an exchange:

• Bitcoin exchanges often lack proper regulation and the infrastructure needed to respond quickly to support requests
• The matching engines and servers on bitcoin exchanges are often unreliable, which can result in the suspension of markets or reduced execution accuracy
• Bitcoin exchanges often impose fees and restrictions on funding and withdrawing from your exchange account, while accounts themselves can take days to open

Crypto 10 Index

As well as trading bitcoin derivatives or buying coins directly from an exchange, you can trade Crypto 10 Index that gives you exposure to 10 major cryptocurrencies like Bitcoin in one single trade. This index speculates on these Cryptocurrencies and closely tracks or mirrors the underlying market price of them.

Decide whether to go long or short

Trading financial derivatives makes it possible to go both long or short, depending on the current market sentiment. Going long means that you expect bitcoin’s price to rise, and going short means that you expect the price to fall.

Set your stops and limits

Stops and limits are crucial risk management tools – and you have several to choose from when you trade with us:

• Normal stops will close out your position at a set level, but they could be liable to slippage if the underlying market price changes quickly
• Trailing stops follow favourable market movements to lock in profits, while capping your downside risk. However, they too can be subject to slippage
• Guaranteed stops will close out your position at a set level, regardless of any slippage. Guaranteed stops are free to set, but you’ll be charged a fee if your guaranteed stop is triggered

These tools are all available to select via the deal ticket on our trading platform.

Open and monitor your trade

To open a bitcoin trade, you’d buy if you thought that the price was going to rise or sell if you thought the price was going to fall. Once your trade is open, you’ll need to monitor the market to make sure that it’s moving in the way you anticipated.

The technical indicators available on our trading platform can help you to determine what bitcoin’s price might do next. Indicators can also help you monitor current market conditions like volatility levels or market sentiment.

Close your position to take a profit or cut a loss

You can close your position whenever you like to take a profit, or to cut a loss that has reached a level that makes you uncomfortable. Your profits will be paid directly into your trading account, while your losses will be deducted from your account balance.

You certainly can profit from bitcoin trading, and your ability to achieve a profit will depend on the depth of your market analysis, your market knowledge and the underlying market conditions.

Trading bitcoin works by enabling you to take a speculative position on bitcoin’s price movements with financial derivatives such as CFDs.

These will enable you to go long and speculate on the price rising, as well as short and speculate on the price falling. The accuracy of your prediction and the size of the market movement will determine your profit or loss.

Trading bitcoin can be risky due to volatility in the market. However, when you open an account with us, you’ll get access to all of our risk management and educational tools. These include in-platform stops and limits, and the educational resources available on IG Academy – so you can take control of your trading.

We are licensed to conduct investment business and digital asset business by the Bermuda Monetary Authority, so any capital in your account is held separately to our company funds – which means that even if we go bust, your money is protected.

Although cryptocurrency is a 24 hour a day, seven day a week market, some hours will see increased volatility and liquidity. For example, 12pm UK time can see some increased volatility as both the UK and US markets are getting into their stride for the day.

Our market hours for bitcoin are from 8am Saturday until 10pm Friday (UK time).

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1 Based on revenue excluding FX (published half-yearly financial statements, June 2020).

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The risks of loss from investing in CFDs can be substantial and the value of your investments may fluctuate. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how this product works, and whether you can afford to take the high risk of losing your money.

CFD Accounts provided by IG International Limited. IG International Limited is licensed to conduct investment business and digital asset business by the Bermuda Monetary Authority.

IG provides an execution-only service. The information in this site does not contain (and should not be construed as containing) investment advice or an investment recommendation, or an offer of or solicitation for transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result.

The information on this site is not directed at residents of the United States and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

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Newcomers to crypto trading need to know what is bitcoin trading at currently

Bitcoin is growing we hear odes of cryptocurrency, falling widespread condemnation. Even within the same head, a diametrical change in attitude towards digital money occurs during the week. But what is happening with bitcoin cash now? “Bitcoin price can demonstrate a rally of up to 22 thousand dollars, and the price can still be called reasonable, or it can drop to 6 thousand, in which case it will also be fairly priced,” Nick Colas, co-founder of DataTrek Research, told CNBC. Bitcoin and cryptocurrencies, in general, are challenging to evaluate; their economic usefulness depends on use cases that have not yet been developed. Of course, the volatility that we saw will continue», — said the expert.

That is, even experts in traditional finance cannot develop a unified strategy regarding crypto bitcoin price, let alone ordinary people. But recently, a very sensible forecast opinion about Bitcoin cash has been noticed on the open spaces, which, with the preservation of the author’s style, let us put to the readers of the site 5 Bitcoin:

The main plus of the cue ball is that it does not belong to anyone; it is controlled and plundered by everyone; it is impossible to steal.

You definitely didn’t know about Bitcoin

There are many more lotions and goals. But only blowing out the “bubble” does not enter them at all — and there is nobody to plant, and it is impossible to plunder — pools around the world. The price in the week rises from Friday to Monday, the most significant drop on Wednesday. Monthly, the price increases by the end of the month usually (to «tear-off» the purchase of expensive pensioner coins). It falls to the 15th and begins to increase the number 26-28 to the 10th-13th. In the year December-January and part of February stagnation. Spring is a smooth growth. From June to August, stagnation or decline, from September to the end of November — growth. All this is associated with periods of vacation, harvesting, slaughtering livestock, and so on. So, people! A lot of Cue Balls are lost (people died, lost wallets, etc.). Do you think Bitcoin Cash will fall in price in this situation? Normal countries are thinking about transferring pension funds to BTC. Will it fall in price?

Why is BTC falling now?

Christmas and New Year. No matter how you puffed up, and the cue ball is blowing Asia and America, also Europe. It will inevitably fall during the Catholic holidays.

Bandits billionaires want to overcome Bitcoin cash. Forks were made for this purpose; for this purpose, red China plays the “ban” of the cue ball. But this is already a passed stage where Bitcoin won. Today, the most famous and expensive exchange with their sharks were let into Bitcoin. They try to break it for themselves. What will happen? Bitcoin price will crush all exchange that it does not control. The old system is doomed, and there will be no stagnation. And do not kill the owner — there is NO owner!

How to start mining bitcoins at home

Before you begin to consider methods of mining, you should understand what it means to mine bitcoins. Mining (from the English mine — mining) is the process of maintaining the network by checking the transaction and adding new blocks to the blockchain. The miner’s task, by randomly sorting through combinations, selects the right solution for the hash function and sign the block, thereby completing all unconfirmed transactions. The miner, who is the first to find the signature, receives a reward in the form of the moment just released for him. Today it is 12.5 MTC. The process of mathematical calculations itself is quite complicated since the selected combination should be a hash from all previous blocks of transactions already enclosed in the blockchain chain, but for miners it comes down to choosing, connecting and setting up the computing equipment, which will select the right combination for signing the block. To summarize, in order to start mining bitcoin cash, a miner should acquire computing power and connect to the process of generating new blocks in the network.

Is it profitable to mine Bitcoins in 2019

The creator of Bitcoin, Satoshi Nakamoto, has invested in a network consensus several algorithms that prevent inflation, which also affects the profitability of coin mining. The internal algorithm for the functioning of bitcoin provides:

• maximum issue of 21 million coins;
• regular review of network complexity;
• halving rewards every 210,000 blocks.

The next half of the remuneration for the block expects miners around May 2020, while, as practice shows, by this time the value of the coin should cover the costs of its extraction, taking into account the reduction in remuneration.

Also, the miner must take into account the expenditure, namely the cost of electricity and computer technology. Bitcoin price belongs to the category of cryptocurrencies, the extraction of which requires significant power. It operates on the PoW algorithm, which assumes that the miners with the highest computing power receive the greatest chances to find a signature for the block. It is also possible that a miner with small capacities can find a clue to the block, but in modern reality, it is more a happy accident, like finding a treasure, rather than a pattern and the possibility of stable earnings.

Today, Bitcoin mining (BTC) at home is not profitable due to dominance in the market of substantial mining farms physically the size of a plant. However, miners continue to receive a stable profit from mining. How?

Everything is straightforward. Mining moved from the do-it-yourself category to the category of services with the advent of cloud-based capacity in the rental market, the so-called cloud mining. Miners rent part of the same farm factories, usually in the form of a contract for 12 months, and begin to receive income on invested money the very next day.

For 2019, the most reliable cloud mining service provider is IQ Mining (here you can read the detailed review that we did personally by checking this company).

The most promising mining methods

To date, the most relevant way to mine bitcoin is mining on devices specially tailored for these purposes — ASIC miners. ASICs are mining devices assembled from microchips and equipped with powerful fans. This is stand-alone professional equipment that can be run with minimal setup, and you can install it at home, but preferably in a separate room.

The cost of ASIC miners varies within $ 1000 and pays off on average for 5-6 months of production, after which it starts to generate stable income. No less popular and effective way is the extraction of bitcoin price on the farm from video cards. The cost of assembling a mining farm will cost approximately the same amount. You can enter mining with a smaller starting capital only by signing a contract with one of the cloud services. The minimum contract value varies between $ 100 per year.

How much can you earn

Mining profitability depends on many factors:

• network complexity;
• cryptocurrency value;
• energy costs of equipment;

the cost of electricity in the region where the mining is carried out.

When mining bitcoin cash, where the miner gets the most profit, who managed to offer a more significant number of combinations, the profitability of mining directly depends on the power of the equipment.

On average, equipment pays off in 5-6 months of actual production, and then it starts to generate net income, but it should be noted that over time, any equipment tends to wear out, and the complexity of the network is continuously growing. Therefore, the farm must undergo a constant upgrade with increasing capacity.

For beginners, the recommended mining method is cloud mining. Its profitability depends on the purchased capacities. Most cloud mining services are equipped with online profitability calculators that calculate the profitability of mining under a contract per day, month, or year, taking into account the current complexity and cost of cryptocurrencies.

Advantages and disadvantages of home mining

• the ability to mine bitcoin price yourself and organize a stable passive income without leaving your home;
• the minimum time investment required;
• according to experts, Bitcoin will still grow;
• anyone can engage in mining, regardless of gender, country of residence, level of education and specialty;
• there is an opportunity to start mining crypto with minimal investment using cloud services;
• protection of personal data of each client thanks to an active privacy policy.

• mining is impossible without investments;
• instability of the course and complexity of the network, which makes it difficult to calculate the exact profit from production;
• the miner must be able to respond to changing market trends quickly;
• the high noise level from equipment operation;
• fundamental knowledge of crypto trading and technology is required.

Bitcoin will confidently overcome its historic high. Several reasons to believe this thanks to the collaboration with Maxitrade

Economists have examined in detail all the factors discussed in recent days that affect the price of Bitcoin, according to the majority. The first one is to lower the cost to $ 8,500 and fill the gap on the chart of Bitcoin price futures, which are now traded on the Chicago Mercantile Exchange (CME). Krueger noted that in the past, the BTC chart did fall to the level of the gap. However, this does not guarantee that such a scenario will be repeated in the future with 100% probability.

Economists and cryptanalysts are very optimistic about the future of Bitcoin’s price.

• Further, the expert walked on the vital decisive factors around Bitcoin at the moment:
• the launch of the Bitcoin cryptocurrency platform on September 23;
• cryptocurrency interest in large financial companies and large investors;
• the growing popularity of bitcoin cash among ordinary people.

How the cryptocurrency market has changed in just a year, or Another reason to invest in top coins

The bitcoin cash dominance index is the ratio of the capitalization of the leading cryptocurrency to the total capitalization of all coins in general, that is, how many percents of the market is occupied by the first coin. Now the figure exceeds the level of 68 percent and continues to grow. The industry has developed a clear ranking of leaders who attract the most attention from investors.

President of the Russian Association of Cryptoeconomics and Blockchain Yuri Pripachkin believes that bitcoin price will grow «quite rapidly» and will soon overcome its historical maximum. «As the regulatory issues of the industry are resolved, there will be a return to the growth rate, because this product is in demand.» This indicates that the industry is ripe enough and in demand, and many projects that were previously postponed will be implemented. Soon, we will see overcoming the maximum levels, it will be fast enough. Then there will be some stabilization. And then after putting serious projects into action, and it will grow further.

Conclusion

Mining is one of the main ways to profit from cryptocurrencies. The mining of bitcoin price and other top-end cryptocurrencies trading requires high computing power. Compared to the cryptocurrency industry’s inception period, when bitcoin price mining was as easy as possible, now it’s a rather difficult process that requires taking into account many parameters, buying and setting up special equipment, and calculating all the bitcoin price of cooling and electricity. Try trading bitcoins based on Maxitrade to earn more!

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