Most of the time, your decisions on Bitcoin trades will only come from speculations, which is high risk. But even though talk about “trading pairs” just like forex traders, trading bitcoin is not like forex in important ways. Because of the popularity of cryptocurrency, a market was born to specifically trade cryptocurrency. It's the job of those banks to stabilize the value of their currencies and keep them stable. For comparison, the value of global stock trading is estimated at only a few hundred billion dollars per day. Bitcoin’s legendary price volatility can excite many investors and traders—especially day traders. 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. A forex trade is simply an exchange of one currency for another at its current rate. If you want to become a trader as well, here are some Bitcoin trading tips you need to consider in order to be successful. However, the fact that the forex market is decentralized and that bitcoin is considered to be a decentralized digital currency does not mean that the two are equivalent. The key distinction is that, though forex exchanges might be decentralized, the currencies themselves are backed by central banks in the countries that issue them. As mentioned, when trading Bitcoin, prices can quickly go very high or very low.bitcoin trade ideas Bitcoin is a digital currency, so investors may think of it in terms of the foreign currency exchange (forex) market. Before you consider whether to trade forex using bitcoin, it's helpful to understand how a conventional forex trade works. Having a cut loss and a profit target price will help keep you level-headed in times of pressure during a trade. If you’re familiar with forex trading, trading bitcoin is most like “spot” trading a currency pair. In forex trading, dealing in a decentralized currency that offers global transactions with no fees is an advantage. Traders who want to take on that risk should use only a locally regulated forex brokerage. Traders who want to take on that risk should use only a locally regulated forex brokerage. Because of this, you must only trade an amount that you’ll be comfortable losing. Bitcoin is a digital currency, so investors may think of it in terms of the foreign currency exchange (forex) market. Having a cut loss target will prevent your emotions from getting in the way. If the prices still keep going down, you’ll realize that you should’ve sold your Bitcoin. 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.