Let’s see how to operate with Bitcoin. Why is it necessary to be very cautious when operating with Bitcoins ?
For a few months, Bitcoin has been in fashion. There are countless forums on Bitcoin (and Andlil.com has opened one at the request of its members), programs on TV for the general public. Anyway, people have appropriated the phenomenon of bitcoins.
every time we see more young traders go to trading with bitcoins. They are drawn to the hype around Bitcoin. But also because Bitcoin knows huge price fluctuations. This volatility of Bitcoin’s price makes beginner traders dream. They imagine themselves making a fortune quickly, but they hide that it can also become a nightmare.
In this article on Bitcoin, I will be the bearer of the bad news. One never gets rich quickly and easily. On the contrary, Bitcoin carries all the germs of what experienced traders want to run away from: risk and uncertainty.
How to operate with bitcoins?
There are three ways to operate with Bitcoin:
We can operate with Bitcoin on specialized exchange platforms, but these are not always watched or controlled by regulators. Many have no obligation or rule to abide by to protect their clients. It is the Wild West. In case of problem, disappearance of the exchange platform, manipulation or piracy, as we see too often, there is no possible way out. The trader is bankrupt.
It is the most used solution by novice traders and the most risky. Instead, one physically owns the bitcoins (the counterpart is that it will be necessary not to lose the bitcoins on the pen drive or the computer, nor to forget the private key, in which case there will be no means of recovering the investment, the bitcoins will be permanently lost).
You should never leave your Bitcoin on the website (web wallet), if it disappears, the bitcoins go with it. Therefore, it is necessary to transfer them “physically” in a systematic way. Ultimately, the cryptocurrency platform solution is for the “general public,” which is not demanding.
Regulated brokers offer Bitcoin trading. The advantage is that they are controlled, supervised by regulators, thus offering serious guarantees and legal protection to the consumer in case of problems. The website will not disappear overnight (it has already been this week), you are insured for € 75,000 in case of bankruptcy of the site.
This is the case, for example, with ProRealTime limited risk CFDs. You do not physically own Bitcoin, but a derivative of Bitcoin (a CFD of Bitcoin), which allows you to take advantage of price fluctuations. We can also operate Bitcoin Cash, Bitcoin Gold, Ripple, ether and Litecoin. This also prevents theft of your bitcoins; you will not be able to lose them.
When it comes to filing your taxes, it is extremely simple with a regulated broker, since he is in charge of calculating what you must declare. You only have to indicate the number. By contrast, cryptocurrency platforms leave you alone. If you pass hundreds or thousands of orders a year, you must account for them and file them one by one in the case of tax inspection.
At PRT CFD we also have a true trading interface (chosen as the best trading platform 2016, 2017 and 2018). We are no longer amateurs. This opens up possibilities for us to trade stocks, indices, raw materials. We have no limits on trading possibilities.
In addition, you will benefit from guaranteed stops that are a revolution in trading. no cryptocurrency exchange platform offers guaranteed stops. Trading without guaranteed stop with such volatile cryptocurrencies is pure and simple unconsciousness.
The CMe allows Bitcoin futures to trade This solution, which passes through the Chicago Mercantile exchange (the Chicago exchange), is also secure and regulated.
In this case too, we will buy or sell a derivative of Bitcoin, the futures of Bitcoin. We will not physically possess them. PRT Futures allows you to trade bitcoins with the world number one Futures in excellent conditions. However, this is reserved for the most capitalized and is limited only to bitcoins, for the moment. Instead, you can also trade with other things than bitcoins: stocks, indices.
Conclusion on Bitcoins trading
The most common mistake that bitcoin traders make is to sign up for cryptocurrency platforms that are not regulated, that offer no guarantee or security on their capital and that are limited. It is difficult enough to make money on the stock market with good trading tools, it is better to make the most of all the opportunities and guarantees.
Professional tools are required to operate seriously and get real results. Do the comparison if you have a cryptocurrency platform, it’s night and day compared to PRT CFD for example.
Finally, Bitcoin without a guaranteed stop is driving without a belt, the first accident is dead. no serious trader would jump into bitcoin trading without this assurance, except for beginners who unfortunately go as fast as possible.