Forex brokers today are not limiting themselves to traditional assets. They are, in fact, also taking a leap towards integrating the never-heard-before internet tokens, called Bitcoin. To those who are not yet aware of Bitcoin, and its fundamental concepts: it is a decentralized digital currency that is gradually replacing the dollar and other traditional assets as a viable payment method.
Bitcoin, in a true sense, is both a software and a form of settlement asset. The only thing that separates it from other tradable currencies, such as the USD, the EURO and others, is its non-government features. Bitcoin is not backed by any central bank or government, like its traditional counterparts. In fact, it is created by a computational process known as mining.
But how can it can have a worth? The great anonymity features Bitcoin brings with its technology has made it a popular form of making cross border transaction, buy/sell good, and dozen other things. The demand of this new technological money is growing all around the globe. It is currently being regulated by many government agencies — on-demand by its expanding user base. So with that said, this currency has demand like any other currency, which makes it an attractive asset to most of the tech-friendly forex brokerage firms.
Today, some of the best forex brokers, including 24Option, AnyOption, Plus500, and many others, offer Bitcoin as a tradable asset for CFD and binary option traders. There are, though, many that are shying away from integrating Bitcoin onto their platform, considering its price volatility and lack of regulatory frameworks. But in countries, in which the digital currency regulations have been settled and enacted, Bitcoin trading is booming without a flaw.
Why Traders Should Embrace Bitcoin?
For traders who are scared of experimenting with this new kind of asset, they must understand the difference between “investing directly” and “investing via a licensed brokerage firm”. Bitcoin indeed is a risky investment when you ignore to look whether it is being regulated by your government or not. But with the licensed forex brokerage firms, as we mentioned above, your trades are as much safe as with the traditional assets.
Thus, it is not the user/end investor, but the forex trading platform that runs the risk. In case of bankruptcy, it is guaranteed that the government body that had licensed the broker must reimburse your funds right away. This also means that the regulators are not necessarily against the Bitcoin, when it comes to endorsing online trading platforms that offer this asset.
So make sure to only use the best bitcoin forex brokers in a regulated environment.