BTCUSD Introduction

Online Bitcoin trading is growing in popularity among traders. Bitcoin is one of the tools available for online trading that traders can select. Bitcoin is a cryptocurrency that trades like other online currencies. Bitcoin (Bitcoin against US Dollar) can now trade as a cash CFD.

CFDs are contracts that are traded online, mimicking the cash price of the underlying asset, and are executed based on Bitcoin's current price.

Bitcoin is increasingly becoming more popular as a digital currency compared to other online currencies.

Bitcoin is now available for trading alongside the established, traditional currencies accessible in the online Forex market.

Traders now have the option to trade Bitcoins without requiring a Bitcoin wallet. Using btcusd as a CFD enables Bitcoin trading alongside Forex currencies like EURUSD or GBPUSD.

Bitcoin can now be traded against the US Dollar using the Currency pair BTCUSD.

BTCUSD trades Bitcoin online as a CFD, no wallet needed.

Unlike traditional currencies governed by centralized banking systems, Bitcoin operates on a decentralized model through peer-to-peer technology, allowing BTC/USD to function without central authorities. The blockchain technology underpinning Bitcoin acts as a public ledger for all transactions.

Trading Bitcoin Through Online Forex Brokers

When trading bitcoin via a forex broker like XM, skip the bitcoin wallet. You speculate on bitcoin's price through CFD trades instead.

You don't actually need to own Bitcoins & hence you do need to own a Bitcoin Wallet. In online trading through an online Forex Broker a trader will be trading a contract of Bitcoins - this contract will represent Bitcoin Cryptos - once you buy or sell you will make profit or loss based on the price movement calculation.

If you buy a Bitcoin CFD and the price increases in your favor, you can then end this bitcoin buy position and earn money based on the difference between the price when you bought it and the price when you sell it. So you'll profit from the price difference, which is why it's called a Contract for Difference - CFD.

One reason why there is an advantage of trading with an online Forex Broker is that you will be trading based on currency prices without necessarily needing to own a Bitcoin wallet. You will just open a trading Account, the same account that is also use to trade traditional currencies such as EURUSD and GBPUSD and you'll use this same account to trade Bitcoin using the Currency Symbol Bitcoin Crypto Currency.

When you open a buy position, your profit comes from the difference between the buy price and the close price of your Bitcoin trade.

When trading Bitcoin CFDs, you are speculating on Bitcoin price movements rather than owning the cryptocurrency itself, which means there's no need for a Bitcoin wallet.

Bitcoins can be bought or sold on online platforms, and trading is available 24 hours a day, five days a week.

Bitcoin's so popular now that you can trade it as a CFD on online markets any time the market's open. With so many people buying and selling Bitcoin contracts, there's always someone ready to take the other side of your trade.

This liquidity has also contributed to the trends observed in Bitcoin's price movements, allowing for market analysis and helping traders predict potential price directions for BTC/USD.

Bitcoin has gained enough popularity to be offered as a CFD financial instrument in online markets, prompting many online brokers to include it as one of their tradable assets through their trading platforms.

The primary online brokerage entities that feature Bitcoin as a tradeable financial asset are recognized as Forex brokers.

Forex brokers have been providing forex trading services to traders because the online currency exchange trading market is the biggest financial trading market and the most liquid. This is why currency prices move in trends due to this liquidity. The currency traders who trade Forex use trading analysis to analyze and interpret the direction of these market trends and then place trades on the currency market so that to make profits from this price movements.

With Bitcoin achieving considerable recognition, its prices now exhibit trends amenable to analysis and trading. The liquidity present in the BTC/USD cryptocurrency pair facilitates the establishment of these discernible market trends. Furthermore, Bitcoin's liquidity assures that an adequate volume of market participants are prepared to buy or sell whenever the Bitcoin market is operational.

The chart below illustrates Bitcoin's price movements, used by traders as a reference for trading BTC/USD cryptocurrency pairs.

BTC/USD Crypto Price Chart

About CryptoCurrency Charts

By examining the chart above, the general direction of Bitcoin's price can be quickly ascertained from its movement patterns.

Initially, asset prices ascend in an uptrend, subsequently declining into a downtrend, and finally ascending once more in a final upward market movement.

New traders eyeing Bitcoin must learn to read these price shifts.

Look at the chart above for an example. It applies a moving average crossover system. This setup pairs two moving averages to reveal the market's trend direction.

If both moving averages point up, bitcoin prices trend upward. In that case, a BTC/USD trader buys bitcoin and profits as prices keep rising.

The moving averages will also show when the trend is changing direction. When the two moving averages stop moving upwards and crossover each other this will show that the upward trend has reversed or the upward momentum is slowing down and traders should close all their open buy trades.

After the MAs crossed, the 2 averages changed course and started to move downward. In a downward trend, a trader will close their open Bitcoin trades and earn money as long as the price of Bitcoin keeps falling.

In the above example there also RSI. This bitcoin indicator has got a center-line marked 50, when this trading indicator is above the 50 mark - prices are bullish, when RSI is above 50 center-mark it means that the prices are generally closing higher than where they opened meaning the price movement is bullish. When RSI crosses below 50 center-mark it shows prices are closing lower than where they open meaning prices are bearish.

Analysis of Bitcoin CryptoCurrency Trading

When trading Bitcoin, traders use market analysis and technical indicators like the ones above to figure out which way market prices are going. Once they know which way the market prices are headed, traders open Bitcoin trades in that direction.

In an uptrend, BTCUSD traders enter buy positions. In a downtrend, they open sell trades.

Buying is known as Going Long and selling is known as Going Short.

Bitcoin Currency traders can make profit when the market is trending upwards or downwards. When the market is trending upwards a trader will buy Bitcoins " this is known as going long. When the market is going downwards a btc usd trader will sell Bitcoins " this is known as going short.

Trading Bitcoin Contracts

Trading Cryptocurrency in the digital marketplace involves contracts, meaning no actual physical Bitcoin changes hands. Regarding contracts, a "one Bitcoin contract" equates precisely to one unit of Bitcoin.

If you want to trade Bitcoin CFD online, you don't have to have a bitcoin wallet. You will be trading bitcoin CFD, which means "Contract for Difference." The money you make or lose from these trades will be based on the difference between the price when you start and end a trade.

In Bitcoin CFD, a btcusd trader who wants to buy Bitcoins will buy a contract that represents 1 bitcoin. A trader who wants to sell Bitcoins will sell a contract, and this contract will also represent one bitcoin.

If you measure Bitcoin in whole units, then one Bitcoin contract traded online equals 1 Bitcoin.

Should the exchange rate for a single Bitcoin be quoted at $5,684, as depicted previously, a single contract of Bitcoin would equate to a value of $5,684. As a trader, if your capital totals $5,684, you could trade one contract of a Bitcoin CFD. However, given the 5:1 leverage provided by online Forex brokers for trading the BTCUSD instrument - brokers now feature this financial product - a trader only needs to hold one-fifth of this contract's full value. If Bitcoin is priced at $5,684, the trader only requires $1,136.80 in their account to deal in one Bitcoin contract.

You get five times your account amount to trade. For a $5,684 bitcoin contract, you need just $1,136.80 in your account. Borrow the rest from your forex and crypto broker to trade bitcoins.

Bitcoin Crypto Currency Leverage

Bitcoin CFD or BTCUSD brokers provide leverage for trading bitcoin cryptos with. Therefore, a trader does not require to deposit all the amount to trade 1 bitcoin. The leverage provided by brokers is 5:1, this means that traders will only be required to deposit one fifth of the amount of one Bitcoin contract and they then will borrow the rest of the amount from their bitcoin broker.

For example, if a trader deposits $10,000 in their Bitcoin account - the online trader can then borrow up to 5 times this amount and use this amount to trader with. The leverage is 5:1 - meaning with $10,000 a trader can borrow up to 5 times to trade with - $10,000 multiplied 5 times is $50,000.

Therefore, a trader who has $10,000 can control an amount five times their deposit: this amount would be $50,000, meaning they can trade up to 8 bitcoins ($5,684x8=$45,472). Eight Bitcoins are equal to eight Lots of Bitcoins.

This is one advantage of trading Bitcoins with an online Forex and Bitcoin broker as opposed to trading Bitcoins using a bitcoin wallet. With an online bitcoin broker a trader will only need to open an online account with their broker, deposit money in this account and use this account to trade Bitcoin contracts online.

BTC USD Crypto Prices

The chart above visualizes the price of the BTCUSD cryptocurrency. The quotation format used for Bitcoin prices incorporates three decimal places.

BTC/USD Crypto Charts

Past Bitcoin prices will be used to create a price chart for Bitcoin. Online traders then use this chart to predict the likely future direction of the Bitcoin market. Traders will study and understand the chart's price movements using different analysis methods and technical indicators.

The BTC/USD Crypto chart is the main tool used to trade Bitcoins online.

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