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Trading Forex with Bitcoin: Benefits and Risks

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The forex market is the largest and most liquid market in the world. It runs for 24 hours a day, 7 days a week, all over the world.  Meanwhile, cryptocurrencies like bitcoins are adding some really interesting dimensions to currency trading. There are a number of forex brokers now accepting bitcoins for currency trading.

Do you think you should try it? In this article, we’ll talk about the benefits and risks of trading forex with bitcoins.


Decentralized Valuations

One big advantage of trading forex with bitcoin is that there’s no central bank that can randomly change bitcoin valuations. Because of its decentralized nature, the bitcoin rates are free from geopolitical influence as well as from macroeconomic issues like inflation or interest rates.

High Leverage

Most forex brokers provide high leverage reaching up to 1:1000 for bitcoin deal Online Trading Platform. Experienced traders can take advantage of this. However, such high margins should also be approached with great caution as they also magnify the chances for great potentials.

No Transaction Costs

All bitcoin transactions are digitally recorded on public networks that have no any involvement from banks or clearing agencies. Therefore, there are normally no transaction costs involved in bitcoin. And the same is also true for global transfers.

Brokers pass these benefits to the clients by not imposing any deposit or withdrawal fee for bitcoin transactions. This improves the trade profits.

Low Deposit Amount

You can start with as low as $25 with some bitcoinforex trading firms. As promotional offers, some forex trading firms even offer new members a matching deposit amount. Traders should take care to check that all brokers are appropriately regulated.

No Global Boundaries

Bitcoin transactions have wiped out global boundaries. Using bitcoin, a trader based in Africa can trade forex through a broker based in the United Kingdom. Regulatory challenges may still be  concern but both the traders and brokers are keen to transact, then all the geographical boundaries are removed.


Bitcoins are traded on multiple exchanges and exchanges vary. HQBroker Online Trading Review  they understand which bitcoin exchange rates the forex broker will be using. While receiving bitcoin deposits from clients, almost each and every broker instantly sell the bitcoins and hold the amount in US dollars.

Even if a trader does not take a forex position right away after the deposit, he or she is still exposed to the bitcoin to US dollar rate risk from deposit to withdrawal.

In addition, historically, bitcoin prices have exhibited high volatility. In absence of regulations, volatility can also be used by unregulated brokers to their advantage and a trader’s disadvantage.

Deposited bitcoins are prone to theft by hacking, even from the broker’s digital wallet. To minimize this kind of risk, seek out brokers who have insurance protections against such illegal activities.

High leverage is also risky for newbie traders who may not understand the exposure.

Cryptocurrency is a different assets class altogether and it sports its own valuations mechanism. Trading forex with bitcoins basically introduces a new intermediate currency which can impacts profit and loss unexpected ways. Any money that is not locked down in a trader’s base currency is at risk.