The cryptocurrency industry is expanding and exploding wider than ever. It grew from NZD 1,000 per BTC to NZD15, 000 per BTC in 2017. This explosion caused the market to grow even larger. The beauty of it is that you do not need to have your own cryptocurrency wallet as a beginner if you want to get involved in bitcoin trading.
Bitcoin trading providers
This business can be profitable if you have access to the right kind of information. You can make money via several methods, like margin trading and arbitrage trading. It is also very easy to learn and understand even by beginners. The volatility in cryptocurrency has further increased the popularity of cryptocurrency trading, thereby bringing in new investors and users.
Why trade bitcoin?
There are several factors that set bitcoin trading apart from any other kind of online trading business. These factors make cryptocurrency trading one of the best in the world and are highlighted below:
- It is a global business: You can get involved in cryptocurrency trading in virtually any part of the world, including New Zealand. There is no geographic divide at all. All you need is a computer connected to the internet, funds in your trading account and the right kind of information
- It can be traded 24/7: Forex trading only takes place 5 days in a week, but cryptocurrency trading occurs 7 days in a week. Consequently, you can make money from bitcoin trading every day of the week, including weekends.
- It is highly volatile: The price movement in cryptocurrency trading is frequent and rapid. You can spot several easy trading opportunities per day with each of them capable of increasing your bankroll or deposit by up to 5% or even more.
Finding the right exchange
Before you can trade cryptocurrency in New Zealand, you need to register with a good exchange. There are so many of them out there today, but it is unfortunate that not all of them can be trusted. Check below for hints on how to choose the right New Zealand exchange for a profitable bitcoin trading.
- Regulation & Trust: Find out if the exchange is trustworthy before you pitch your tent with them. Steer clear if there are indications that they can run away with your funds.
- Location: Is the exchange located in New Zealand where the local currency can be accepted? If it is not located in New Zealand, does it allow deposit from New Zealand or with the New Zealand dollars?
- Fees: How much does the exchange charge you per trade?
- Liquidity: Does the exchange has high liquidity and very good market depth? You will need these features if you are into bitcoin trading as a large trader.
Before you pitch your tent with any of the bitcoin trading exchanges in New Zealand, take some time to read up reviews about that exchange; this will give you an idea of the quality of service provided by the exchange and read more at trading uk.
We considered up to 105 variables in our effort to identify the best Forex brokers when you can buy vicarious cryptocurrencies, including bitcoin.
- CMC Markets
It is the best overall broker for crypto trading. It is also reliable for copy trading. It offers CFDs and physical cryptocurrency trading. The platform has also launched its own crypto wallet, which is fully functional. Its proprietary code is open-sourced for decentralized exchange (DEX) trading. It is done from the eToroX Labs as a part of the Lira project. The trader can access almost a hundred digital assets on this platform. It is among the Best cryptocurrency brokers.
You can trade non-CFDs or underlying tokens on this platform. It is regulated and also publicly traded around the world. It can also play the role of a custodian for clients and it does this at Bitstamp by holding equivalent crypto.
You can access up to 8 CFD pairs of crypto here. You can also access favorable contract specifications, flexible margin requirements and weekend trading. The broker also offers Crypto 10 Index, which is a CFD representing the performance of the ten largest tokens according to market cap. Thanks to the Crypto 10 Index, passive investors can invest in crypto futures without the need to trade individual pairs of the token.
It offers 16 digital asset pairs and the pricing is competitive. Traders can equally access weekend trading. The broker is respectable for trading cryptocurrencies. The customer service is equally topnotch.
It offers 8 top crypto assets and the pricing is competitive in terms of overnight and spreads financing costs that cover a large array of crypto assets including bitcoin.
The risks of buying bitcoin or any crypto
Trading with the many crypto exchanges to there today can be very tempting. However, you need to consider the issue of security. For example, hacking can occur on the crypto exchanges and this can cause theft of the assets of the customers. Regulatory scrutiny is also one of the most common issues with many crypto exchanges, especially those among them that operate without a license or those that violate the KYC or AML regulations.
There are so many well-established, reliable Forex brokers that offer crypto trading. Even at that, it can be challenging to find the right crypto broker among them where you can buy bitcoin without any problem. Many of the challenges encountered bother around product availability, regulation, trading costs and liquidity.
One of the most challenging factors associated with choosing the Best cryptocurrency brokers is the method used by the broker to keep the crypto safe this is because of the many risks and complexity associated with keeping the private kept safe. As a result of this, even the few Forex brokers offering the trading of crypto have not launched a crypt wallet that can fully permit the withdrawal of the actual tokens.
This is to say that the greatest risks you have ever taken are those that you do not even know that you are taking. This is why we focus more on showing you the reviews of regulated Forex brokers that have been around for up to a decade or more. We show our readers the Trust Score rating of each of the Forex brokers also. As a result, our visitors can easily make up their minds about the reliability of other Forex brokers.
Be that as it may, you need to understand that not all unregulated crypto exchanges are unreliable. We have not included Coinbase in our annual review since the crypto exchange fails to offer leveraged retail Forex trading. Be that as it may, Coinbase is an undisputed leader in the crypto world and currency has more than 10 million customer accounts.
You need to choose carefully when selecting a reliable broker for cryptocurrencies. Some of the factors that can determine which of the brokers you select for crypto trading can include your specific location, margin offered, your specific trading style, the available services offered by that broker in your area and so on.
Are you trading crypto as a CFD, off-exchange derivative or you are trading on-exchange listed security, option contract or futures? You will undoubtedly encounter certain advantages and disadvantages. This is also the case for those trading actual underlying physical crypto. Your specific needs as a trader or investor can go a long way to determine if that particular broker is the best one for you or not. Some Forex brokers offering crypto trading do not allow weekend trading of certain crypto CFD contacts.
Some traders make effort to diversify their crypto exposure by opting for trading crypto via multiple methods or they can maintain portfolio by holding the underlying passively, using multiple brokers and trading crypto CFDs actively.
Irrespective of the particular approach you decide to take, make sure that you get things done with utmost caution so that you can make the most of the cryptocurrencies trading on that your preferred broker.
There is substantial risk in cryptocurrency trading. Many more market providers come up almost monthly. It is unfortunate that some of these marketplaces are designed to scam unsuspecting traders. They even venture into intense, clever marketing campaign that will get the unsuspecting trader hooked in no time.
While some other brokers may be reliable and trustworthy, they too may become victims of attacks from hackers and the end-user will be the one to pay the heavy price if the broker is hacked. To be able to manage this situation properly, you should diversify your investment and also pick only a well-established crypto trading platform.
Crypto trading is going nowhere. Rather, it will grow more popular in times to come. Make sure you register with only a trusted broker and you should never risk any amount of money that you cannot afford to lose. It is hoped that the information provided in this review will help you make the right choice when trading cryptocurrency.
How can I know if the crypto broker is regulated?
The Best cryptocurrency brokers are the regulated ones. You should find out if the broker is regulated or not and the best way to do this is to check the financial markets’ regulator in your country. South African traders can check with the FSCA.
Is cryptocurrency risky?
Yes, it is. This is why you should only risk money that you can afford to lose and make sure you only register with a regulated crypto broker.
Which Forex broker will allow you to trade most crypto assets?
The best to consider in this regard is eToro. Most of the crypto assets are available on the platform.
Which is the best Forex broker for trading bitcoin?
You can opt for FOREX.com or IG because they offer active bitcoin trading, as well as, the ability to go long and short. The pip spreads on these platforms are also competitive.
How can I sell short bitcoin?
First of all, you need to register with a Forex broker where you can trade bitcoin as CFD. When you sell short bitcoin, it means you predict that the value of bitcoin will fall.
Should I use a bitcoin CFD to HODL?
The term Holding ON to Dear Life (HODL) comes up for traders that want to hold their open positions for a long time. CFD is not ideal for holding a long position because of the charges involved.
What is free for buying bitcoin?
The fee depends on the broker. Unregulated brokers tend to charge high fees. So, it is better to register on a regulated broker platform.