Meanwhile, is typically valued at less than $100 billion per day, though it rose slightly above $1 trillion on two days in 2018. The price behavior of Bitcoin can be very volatile. However, there will be a time that prices will suddenly go down. Because of this, you must only trade an amount that you’ll be comfortable losing. Mostly, those ways have to do with the fact that bitcoin was invented in 2008, not centuries ago like most forex-traded currencies. Unlike tourists who exchange their home currency for local spending money, forex traders are trying to make money off the continual fluctuations in the real value of one currency against another. Most forex trading is conducted in a decentralized fashion via over-the-counter markets. Because of this, you must only trade an amount that you’ll be comfortable losing. But because cryptocurrencies are such a brand-new asset class, even experienced investors may find themselves asking, “How do I trade bitcoin?” Since Bitcoin is the most known cryptocurrency, many people started trading Bitcoin online. Because of the popularity of cryptocurrency, a market was born to specifically trade cryptocurrency. That’s the number one rule to become a successful Bitcoin trader. In forex trading, dealing in a decentralized currency that offers global transactions with no fees is an advantage. Mostly, those ways have to do with the fact that bitcoin was invented in 2008, not centuries ago like most forex-traded currencies.buy bitcoin with visa debit card But the tradeoff is essentially adding a third currency to what was a trading pair. Traders who want to take on that risk should use only a locally regulated forex brokerage. Bitcoin, a type of cryptocurrency, has piqued the interest of so many people. Consequently, bitcoin trading is simpler and more straightforward than forex. But even though talk about “trading pairs” just like forex traders, trading bitcoin is not like forex in important ways. Bitcoin is a digital currency, so investors may think of it in terms of the foreign currency exchange (forex) market. 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. Having a cut loss and a profit target price will help keep you level-headed in times of pressure during a trade. A forex trade is simply an exchange of one currency for another at its current rate. Before you consider whether to trade forex using bitcoin, it's helpful to understand how a conventional forex trade works. Then, you start thinking that it’ll still go up and end up not selling. By this time, it’ll be too late to sell. Another key difference is that the IRS treats bitcoin as property, not currency, for tax purposes, so the tax consequences of bitcoin trading may be different from trading fiat currencies. Bitcoin, a type of cryptocurrency, has piqued the interest of so many people.