The chances are you have heard of cryptocurrency and Bitcoin. What was once something that was consigned to the fringes of the tech community, has since revolutionized the financial arena. Here we will take a deep dive into what Bitcoin is, how it works and how you can start trading it with 0% commission.
Start Trading Bitcoin
Bitcoin the first-ever cryptocurrency ever created is a form of digital cash outside the control of any government or 3rd party financial institution. The Bitcoin protocol is run by a decentralized network of computers distributed around the world. The technology that BTC is built on (the Blockchain) allows the management and tracking of all transactions. The Blockchain is a public virtual ledger and anybody can access the data at any time.
A revolutionary invention first created in 2009, Bitcoin has given users the ability to send and receive digital assets instantly. People are drawn to cryptocurrency because of its uncensored attributes. Furthermore, its permissionless nature means that anyone can participate in the ecosystem and transactions can be made at any time from anywhere and at exceptionally low costs.
There is still a lot of mystery surrounding cryptocurrency. It is known that it came into inception in 2009, but the creator remains a pseudonym. The unknown creator, known as Satoshi Nakamoto, who began writing the code for the Bitcoin system in 2006 could be one person or a group of people situated anywhere in the world. Although the name is of Japanese origin, several people have identified as likely candidates, but to this day the search continues.
Satoshi authored a throve of emails and social media/forum posts sharing his/her thoughts on the future of BTC before disappearing from the project 2011, just two years after releasing the infamous whitepaper. Since then, developers around the world continue to edit the code with the aim of continuously improving the protocol.
Despite Satoshi being cited as the mastermind behind Bitcoin, its technology is a result of decades of concepts on how cryptography could be used to create a form of digital cash. Previous ideas that paved the way for Bitcoin include, B-money, Bit Gold, and DigiCash.
Before you try to understand how Bitcoin works let’s first break down how other forms of exchange works.
So, you are sitting in your favourite coffee shop and your friend gives you €10. In this situation the cash is placed directly into your hand, you now have €10, and your friend doesn’t. Simple right?
Your friend gave something of value, and you received it. No need for an intermediary to help make the transfer. It works similarly with Bitcoin. The difference with Bitcoin transactions is they operate digitally. Now you might be thinking, how do I know that the €10 was not sent somewhere else beforehand? Or how can I be sure that copies aren’t made, and funds were stolen?
In layman’s terms, each Bitcoin is in essence computer files that are stored in a digital wallet that is accessible through your desktop or mobile device. Each transaction is tracked in a ledger (think of it as an accounting book) that everyone has access to. All transactions that have occurred over time are recorded in this ledger. Thus, people cannot cheat it. The ledger is not controlled by any one person, the rules are already predefined. Furthermore, the code on which it is built is open source meaning anyone can participate in the network. It is there for people to maintain, secure, and improve.
Within the Blockchain, the exchange of the digital currency is exactly like the physical exchange of €10. In other words, it behaves like a physical transfer, but it is still digital.
In order to get in on a surging opportunity or short the latest bubble, it is important for traders to understand what impacts Bitcoin’s Price movements.
There will only ever be 21 million Bitcoin in circulation, expected to be exhausted by 2040. This built-in scarcity is a key factor that can support Bitcoin’s long-term value.
As we have seen time and time again, particularly the “Elon Musk Effect”, Bitcoin is sensitive to relevant news or events, and its price fluctuates. Any “bad” press or news concerning security, regulation, value, or longevity will have a negative effect on Bitcoin’s market value. So, it’s important to stay in the know.
Bitcoin’s public profile can also depend on new adoption, or perhaps integrations into existing payment systems or financial frameworks. The more demand for the crypto asset may have a positive impact on its price.
Day trading is the strategy of opening and closing positions within a single day. Do you want to profit from BTC’s short-term price movements? This strategy maybe your best option. The key goal here is to profit from immediate movements.
This style of trading is when positions are opened or closed based on a current market trend. For example, if the market is in a bullish trend traders may decide to go long, then short if the market is bearish. trend trading is always straightforward, but it can help traders take day-to-day volatility in their stride and preventing them to get caught up in short-term market movements.
In a bid to protect their BTC/USD positions and mitigate risk some traders choose to opt for the hedging strategy. Let’s say you are concerned that the market will move against you, hedging is when you take an opposing position to one that is already open. For instance: Let’s just say you have Bitcoin in your portfolio and there is concern about a drop in price, here traders can open a short position on BTC with CFDs. So, if the expected fall does occur gains made on the short position will offset any loss on your owned Bitcoin.
For many Bitcoin can be a HODLing game. Derived from a misspelling of “hold” this refers to the buy and hold strategy in crypto. This is popular to the fresher entrants to the market who may be unsure of how it works and fear losing currency, and it involves the holding of your BTC for a longer time span.
Leverage, sometimes referred to as margin is used by traders to increase potential return. Through leverage, traders are able to invest a smaller amount of funds to open a larger market position. At TradeOr we offer leverage of 10:1 on crypto pairs meaning you can trade 10x the value that is in your trading account. So let’s say for example you want to trade $2,000 on BTC/USD. With the leverage of 10:1, if you open this position, only one-tenth of the fund represents your own funds, the remaining $18,000 is subsequently “borrowed” from TradeOr. Let’s give a full example.
If you deposit $2,000 into your trading account, with TradeOr to open a position on BTC/USD you will be able to open a trade to the amount of $20,000. In the instance that this trade sees a 10% return ($2,000) your account will actually increase by 50%, to $4,000. However, with trading, you can lose. So, in the same example if the result went the opposite way and you saw a 10% loss you would have actually wiped out the funds in your account. It’s for this reason leverage can be seen as a double-edged sword and it is important that when trading with leverage it’s done with strict risk management.
We designed our platform with the customer at the forefront. By signing up with us clients will enjoy a user-friendly interface, continuous learning for users of all levels, convenience & innovative features designed to help you capitalize on opportunities.
As industry professionals, we have created an experience that fits everyones’ expectations. Join us on this exciting journey and stay tuned for new features designed to help you reach higher levels.
Once you have opened an account with TradeOr you will have access to 0% commission on not only your BTC/USD trades but on all your favorite assets. This is a crucial aspect when choosing a broker as it means you get more from your trades.
At TradeOr we envision a world where traders have the technology to shape a new way to trade. A trading experience that is efficient, innovative, and action orientated. Our traders can analyze the markets more clearly and find new opportunities faster. We have integrated TradingView & ChartIQ into our innovative platform meaning experienced investors and novice traders alike have access to efficient trading tools to help at every stage of their trading process.
Speed is everything when it comes to trading financial markets. Our traders can access instantaneous funding by using Bitcoin as their source of power. Deposit using BTC and start using the crypto asset to trade or invest in all major financial instruments.
We all need a helping hand sometimes. So, that is why we offer 24/7 support to all traders. No query is too big or too small for our team of trading veterans.
In simple, yes, it can be. However, it is important to note that markets are volatile and profits may depend on how in-depth your market analysis or market knowledge is.
The crypto market is known for its volatility and can be a risky venture. However, TradeOr provides all the risk management & educational tools you may need to help counteract and manage your risk. These include stop and limits and an abundance of educational resources to help you take control of your trading.
Trading Bitcoin allows traders to open or close speculative positions on BTC’s price movements. If you are confident that the price will rise traders may open long positions, but if you speculate that the price may fall you can also go short. Position profits will depend on the accuracy of your forecasts and the size of the price movements.
The crypto market never sleeps, meaning traders have access 24/7, however certain times of the day may experience increased volatility and liquidity.
Leverage, sometimes referred to as margin is used by traders to increase potential return.
