Trade Bitcoin Trading

BTC USD Crypto Accounts

With the growth in the popularity of BTCUSD trade the demand for different types of Bitcoin trading accounts has also grown. The different account types available for Bitcoin are:

  1. Standard Trading Account
  2. Micro Account

The type of account which a trader will choose depends on amount of capital which a btc/usd trader has for trading.

Standard BTCUSD Account

Bitcoin is traded in lots known as contracts. The standard lot for Bitcoin is made up of 1 Bitcoin. This 1 unit of Bitcoin is what makes one standard Bitcoin contract.

Hence, when 1 unit of Bitcoin moves up by $1 - a trader trading 1 lot of Bitcoin will make a profit of $1, this is because 1 contract of Bitcoin represents 1 unit of Bitcoin.

For this BTCUSD account where a trader wants to open standard lots and standard contracts when trading a trader will require to have capital of one fifth the current BTCUSD price - this is because a trader can borrow up to 5 times their deposit using leverage of 5:1 provided by their Bitcoin broker.

Hence, if the current price of Bitcoin is $5500.00 then a trader only requires $1100 in their account to open 1 Bitcoin contract. If a trader has $11,000 as their deposit in their account they can open up to 10 Bitcoin Contracts - This is because with leverage of 5:1 traders can borrow up to 5 times their account balance - therefore $11,000 multiplied by 5 is equivalent to $55,000 - the amount of capital which a trader will be controlling after using 5:1 leverage, $55,000 capital then can be used to buy 10 Bitcoin contracts (10x$5500=$55,000).

Micro Bitcoin Account

The micro lot for Bitcoin is made up of 0.01 unit of Bitcoin. Bitcoin is traded in lots known as contracts. The micro lot for Bitcoin is made up of 0.01 units of Bitcoin - one hundredth of 1 Bitcoin. Because Bitcoin is measured in 1 unit of Bitcoin, then these 0.01 unit of 1 Bitcoin is equal to $0.01 or 1 cents. These 0.01 units of Bitcoin is what makes one micro Bitcoin contract.

Hence, when 1 unit of moves up by $1 - a trader 1 micro lot of will make a profit of $0.01 - this is because 1 micro contract of Bitcoin represents 0.01 unit of BTCUSD.

For this Bitcoin trading account where a trader wants to open micro lots when trading BTCUSD - a trader will require to have capital of at least $11.

Selecting a Bitcoin Account

A trader will be required to decide which type of Bitcoin account is best for them based on the amount of capital that they want to invest & begin trading with.

For traders with $50,000 capital a Standard Bitcoin account is the best account to open and for traders with $1,000 to $5,000 account capital Micro Bitcoin trading account is the best account type to open.

Practice Demo Bitcoin Accounts

One of the methods that a trader can use to figure out which account type is best for them is by opening a Bitcoin practice account that will help them to gain and garner more knowledge about how Bitcoin trading works.

When opening the Bitcoin demo account, a trader can then choose & select the amount of capital which they want to practice with, for example a trader can select & choose the demo account balance of $10,000 or practice account balance of $50,000 dollars.

This way a trader can practice trading the Bitcoin market using the account balance which they plan to open a Bitcoin trading account with. With this account a trader can also practice how to trade with standard contracts or micro contracts depending on which contracts/lots they will be trading with once they sign up and open their real Bitcoin account.

Demo practice account is a great way to get started and learn the specifics of the Bitcoin trading market. It gives beginner traders a chance to learn and practice for free with no risk of losing money. Demo accounts practice trading is a great way for a trader to learn and get used to the BTCUSD markets, execution methods of their Bitcoin broker and at the same time test various strategies that they will be using when trading BTCUSD.

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