Save $588 per year with Sponsored Premium
How to trade bitcoins
BitcoinsJoin Tradimo's Premium Club And Choose a Membership Right For You.
- 1,000+ hours of videos, quizzes & projects
- 150,000+ students rate our courses 4,8/5 every month
- Private access to trading & investing mentorship
- Trading & investing signal community with 40% return p.a.*
- Completion certificate for your resumé & LinkedIn
The trading and investing signals are provided for education purposes and if you use them with real money, you do so at your own risk.
How to trade bitcoins
The bitcoins market is relatively immature compared to other markets and so there is limited ways to trade them. Currently you can trade the spot market – trading bitcoins directly as you would the forex market.
To access the market, you need to setup an account with a bitcoin broker. It's also worthwhile you knowing the settlement and order matching processes for when you do trade bitcoins.
With these brokers you can trade bitcoins
How to place an order with bitcoin
Placing an order on a platform is quite simple, allowing the user to specify a limit or get filled via the market.
You are able to specify a dollar amount (depending on your base currency) and the number of bitcoins you would like to purchase or sell.
Markets.com offers the MetaTrader 4 (MT4) software to trade bitcoins. tradimo offers great MT4 tutorials. eToro offers its own trading software.
How order matching works with bitcoin
Since bitcoins are traded under the "over the counter" principle, a counterparty is required to fulfill the order - in other words, you need someone to buy or sell the bitcoins to complete your trade - the spreads quite large and the liquidity low.
Summary
So far you have learned that...
- ... to access the bitcoins market, you need to set up an account with a bitcoin broker.
- ... placing a trade is straight forward with a bitcoins broker. You can specify the amount of bitcoins you would like to purchase and the price that you wish to get filled at.
- ... bitcoins can be subject to wide spreads and reduced liquidity.