How to start trading Bitcoin with Capital.com?
To start trading Bitcoin with Capital.com, Open Capital.com CFD Account and log in to the Capital.com Official Website.
Then you need to make a deposit to your account before starting trading Bitcoin.
On the Capital.com trading platform, you can trade Bitcoin Contracts for Difference (CFD) anytime, anywhere.
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Why buy Bitcoin (Bitcoin)?
Bitcoin, English Bitcoin (BTC), is the world’s first decentralized cryptocurrency and was officially released in 2009. Regardless of market value or price, Bitcoin ranks first in the cryptocurrency market. In fact, Bitcoin accounts for about half of the total value of the cryptocurrency market.
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Buying Bitcoin vs trading Bitcoin CFDs
In the cryptocurrency market, you have two trading methods to choose from. First, buy cryptocurrencies directly on exchanges, such as buying bitcoins on Bitstamp exchange. This type of transaction is a long-term investment by holding bitcoin assets and selling them to make a profit when the price rises sharply.
The second way of trading is to use Contracts for Difference (CFD) to speculate on the price trend of a certain cryptocurrency. A contract for difference is a financial instrument, a contract signed between an investor and a broker. The two parties in the contract agree to pay the other party a value difference based on the value of an asset, also known as the “buy/sell spread”. You can choose to create a long position (that is, to predict a price increase) or a short position (that is, to predict a price to fall). Because of the short cycle of CFDs, this trading method is regarded as a short-term investment. For example, if you are trading Bitcoin CFDs, then you can choose to go long or short the market by predicting the ups and downs of BTC/USD.
So, what is the biggest difference between buying cryptocurrency and trading cryptocurrency CFDs? The purchased cryptocurrency will be stored in the wallet, and the CFD transaction is the position in the account, which is supervised by the financial regulator. Trading CFDs is not restricted by trading assets, and only one contract is bought/sold, so it has greater flexibility. In addition, CFDs are regulated and mature financial products.
Now, all you need to do is choose a trustworthy CFD broker. In just three minutes, you can register for a Capital.com trading account for free and start your cryptocurrency CFD trading journey. Since its launch, Capital.com’s trading platform has won numerous awards and is the best trading assistant for CFD investors.
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What is cryptocurrency? What is Bitcoin?
Bitcoin is the first decentralized cryptocurrency, officially launched in 2009 under the pseudonym “Satoshi Nakamoto”. Soon, various cryptocurrencies followed. It is no exaggeration to say that today’s cryptocurrency market started with Bitcoin.
Cryptocurrencies are stored in different forms of “wallets”, such as Bitcoin can be deposited in online or offline electronic wallets.
Encrypted currency is a digital asset used as a transaction medium. Encryption technology is applied to ensure transaction security, control supply and verify transfer operations. In short, cryptocurrency is a decentralized electronic currency.
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Bitcoin price history
Although Bitcoin was released in 2009, the first Bitcoin exchange BitcoinMarket.com (now closed) did not appear until March 17th of the following year. In May, Laszlo Hanyecz bought two pizzas in Florida with 100,000 Bitcoins, completing the first transaction in Bitcoin history.
In the 7th year after the completion of the first transaction, the price of Bitcoin exceeded $1,000 for the first time. In May 2017, the price of Bitcoin exceeded $2,000; in September, the headquarters of the British Financial Conduct Authority issued a warning to Bitcoin traders; Jamie Dimon, CEO of JP Morgan Chase Group, stated that Bitcoin It is a kind of “fraud”. In December, the price of Bitcoin exceeded $20,000. After an unprecedented surge in 2017, the price of Bitcoin took a sharp turn and plunged by 17-18% at one point. In January and February 2018, the price of Bitcoin was as low as $6510. After that, the Bitcoin market was relatively stable.
Is cryptocurrency a “market bubble” in financial history?
The financial term “market bubble” refers to the fact that the price of an asset is too high to exceed its own value. For example, the dot-com bubble of 1995-2001 is a typical example. At that time, the stocks of technology companies skyrocketed only because of market sentiment, and had nothing to do with the company’s earnings and development potential. In March 2000, the Internet bubble burst.
The problem now is that we cannot determine the true value of cryptocurrencies. Even if a large number of investors treat cryptocurrency as an asset, its essence is not an asset. At present, cryptocurrency has not been used as a means of circulation, which has hindered currency valuation. In any case, we should be cautious and rational when dealing with emerging technologies. It is more likely that the value of Bitcoin and Ripple has not been overestimated; if there is a bubble, it is also those new cryptocurrencies that are spawned by market sentiment. It can be said that the cryptocurrency market is similar to the Internet bubble of the year. The value of high-quality stocks (such as Amazon) actually exists; but companies such as Pets.com that completed IPO to liquidation in just 268 days are obviously useless. Its a table. Therefore, whether the market is overheating can only be judged by time. In either case, you can use CFDs to go long/short the market.
From the end of 2017 to the beginning of 2018, the price of Bitcoin soared to $20,000, followed by other cryptocurrencies. From January to February 2018, the cryptocurrency market collapsed across the board. The price of Bitcoin plummeted by 65%, and most cryptocurrencies also collapsed. Obviously, there was a bubble in the cryptocurrency market. This makes traders wonder whether there will be another bubble. The value of most cryptocurrencies comes from their development potential and whether they can promote social development in the future. However, if there is no institutional recognition, the potential value is still just the potential value. This is another issue worth considering.
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Bitcoin storage: what is a wallet? Why do you need a wallet?
Before buying Bitcoin, you need a place to store it, this is the wallet. The wallet is composed of two elements: a private key and a public address. Only by entering the personal private key can you enter the wallet and access the bitcoin address stored in the wallet, which is the public key. The existence of the wallet guarantees the security of cryptocurrencies such as Bitcoin.
In essence, traders use the public key to transfer bitcoins, and only the private key can obtain the public key information. Some traders choose to store their tokens in the wallet provided by the cryptocurrency exchange, because the exchange’s application makes buying and selling and trading cryptocurrencies more convenient and faster.
What are the risks of hoarding coins?
Cryptocurrency exchanges and e-wallets cannot completely prevent online theft. The notorious Mt Gox Bitcoin exchange is the best proof. Mt Gox used to be the world’s largest bitcoin exchange, but later lost all bitcoin due to a security breach and declared bankruptcy in 2014. The hacker stole a total of 850,000 bitcoins from the Mt Gox exchange, which is approximately US$450 million in February 2014 prices. It is believed that the private key of the exchange’s e-wallet was stolen as early as 2011.
However, Bitcoin CFD transactions do not require an electronic wallet, which avoids the risk of private keys being stolen.
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What happened to the collapse of the cryptocurrency market in 2018?
The 2018 crypto market crash was the largest selling event in the history of the cryptocurrency market. From January 6th to February 6th, the price of Bitcoin dropped by about 65%, and then almost all cryptocurrencies collapsed. The market value of cryptocurrencies lost at least $342 billion in the first quarter of 2018.
But earlier, Bitcoin broke through $20,000 in December 2017, and most other cryptocurrencies also peaked soon after.
So what caused the collapse of the cryptocurrency market? First, South Korea’s Attorney General banned crypto exchanges from creating new trading accounts, which directly led to a 12% devaluation of Bitcoin. Soon after, the Japanese Bitcoin wallet and exchange Coincheck was hacked and about 500 million NEM tokens (worth $530 million) were stolen, making it the largest hacking attack in the cryptocurrency market at the time.
What is Bitcoin Cash?
Bitcoin Cash is a cryptocurrency created after Bitcoin’s hard fork. A hard fork is a fundamental change in the blockchain of Bitcoin’s basic technology. Since the block area in the blockchain has doubled, Bitcoin Cash transactions are relatively quicker and cheaper.
Bitcoin Cash was created by a group in the Bitcoin community to re-establish Bitcoin’s promise of peer-to-peer electronic cash. In terms of market capitalization, Bitcoin Cash is the fourth-largest cryptocurrency.
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Comment by Hans
April 24, 2024
as I am trading here various assets, for me it's the most important feature. i mean, flexibility in tradable markets. i alternate trading styles, meaning that sometimes I trad...