Trade Bitcoin Trading

BTC USD Crypto Accounts

As more people get into trading BTCUSD, the need for different types of Bitcoin trading accounts keeps growing. Here are some of the options you'll find:

  1. Standard Trading Account
  2. Micro Account

The selection of account type by a btc/usd trader is contingent upon the total capital they have available for trading activities.

Standard BTCUSD Account

Bitcoin is traded in units called contracts. Bitcoin's normal lot size is one Bitcoin. One standard Bitcoin contract consists of one Bitcoin unit.

Consequently, a $1 increment in one unit of Bitcoin value results in a $1 profit for a trader dealing in one lot of Bitcoin, since one Bitcoin contract corresponds exactly to one 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.

Consequently, if one Bitcoin is priced at $5500.00, a trader needs only $1100 in their account to initiate a single Bitcoin contract. Should a trader possess $11,000 in their account balance, they are capable of opening up to 10 Bitcoin Contracts. This is made possible because 5:1 leverage permits borrowing up to five times the account balance - thus, $11,000 multiplied by 5 equals $55,000. This $55,000 controls the capital available to purchase 10 Bitcoin contracts ($5500 per contract x 10 makes $55,000).

Micro Bitcoin Account

In Bitcoin trading, a micro lot consists of 0.01 units of Bitcoin, which is one hundredth of a whole Bitcoin. As Bitcoin is calculated in full units, these 0.01 units correspond to $0.01 or 1 cent. Therefore, a micro Bitcoin contract represents this amount.

Therefore, since one micro contract of Bitcoin represents 0. 01 unit of BTCUSD, a trader 1 micro lot of will make a profit of $0. 01 when one unit of moves up by $1.

If you want to open very small contracts/lots when trading BTCUSD with this Bitcoin trading account, you'll need to have at least $11 of your own money.

Selecting a Bitcoin Account

A trader must choose which kind of Bitcoin account works best for them based on how much money they want to put in and start 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 effective approach for a trader to ascertain the most suitable account type involves opening a Bitcoin practice account, which facilitates the acquisition of practical knowledge concerning the mechanics of Bitcoin trading.

When starting a bitcoin demo account, pick your practice capital. Choose something like $10,000 or $50,000 for the balance. Use it to test trades without risk.

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.

A demo account helps beginners enter Bitcoin trading without risk. It lets them learn and practice for free. Traders get comfy with BTCUSD markets, broker methods, and test strategies before going live.

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