Best Bitcoin Trading Platform

When Bitcoin was made available to the general public in 2009, a new revolutionary form of currency was also created, which is created and stored exclusively digitally. The new digital currency quickly became so popular that it had started a new trend on its own. Not surprisingly, other similar digital currencies soon followed. Nowadays, Bitcoin is a pioneer of modern cryptocurrencies and is by far the most popular and most used digital currency.

The following crypto trading provider was particularly convincing in the test:

The following provider is regulated by the CySEC.

Trading PlatformFeatures We LikeRatingLink to Platform
  • Simple trading platform

  • Easy to understand even for beginners

  • Social trading possible

  • Many markets tradable
9.9

What is Bitcoin?

Bitcoin is a digital monetary unit that belongs to a decentralized payment system that can be used worldwide. All transfers are carried out by a so-called “computer swarm” via the Internet using a special application. The big advantage here is that, unlike conventional bank transactions, no central processing point is needed. The exchange rate of the digital currency into other means of payment depends primarily on supply and demand. The Bitcoin network was first described in 2008 in a white paper published under the pseudonym Satoshi Nakamoto. It is still not known whether a person or a group is hidden behind the pseudonym. A year later, an open-source reference software was published, which is based on the crypto method described. The Bitcoin network as we know it today was launched on January 3, 2009, with the generation of the first 50 bitcoins.

The basis of the Bitcoin network is a decentralized database (blockchain) in which all transactions are recorded and which is managed by the participants together with a Bitcoin application. If you want to participate in the Bitcoin network, you only have to install a Bitcoin client on your computer. Alternatively, you can also use one of the online services that are offered for example for mobile devices. Thanks to its open architecture, the Bitcoin network is not subject to any geographical restrictions, so that simple Internet access is usually sufficient to be able to carry out cross-border transactions. The use of highly complex cryptographic procedures ensures that transactions with bitcoins are only carried out by the respective owner and that the bitcoins cannot be issued multiple times. Bitcoin is therefore called a cryptocurrency, although the term “currency” usually refers to means of payment that are issued by states. In Germany, the term “crypto money” is often used.

How does the crypto currency Bitcoin work?

bitcoin trading

Bitcoin essentially consists of a payment system and a monetary unit, which is stored and created in a decentralized network by using its own software. The Bitcoin payment system is based on a decentralized database that is managed jointly by all participants. All transactions made are stored in a blockchain in this database. The only requirement for participation is a current Bitcoin client, which is provided as a free download. As we mentioned in the paragraph above, the Bitcoin payment system consists of the blockchain, which is a kind of journal and in which all transactions are recorded in detail. The Bitcoin payment system is based on a complex peer-to-peer network to which all participating computers are connected. All transactions are recorded in this network. The blockchain is stored decentrally on all Bitcoin nodes, managed, and continuously updated via the Bitcoin network.

To use Bitcoin for transactions and payments, a special Bitcoin application with an internet connection is required. These so-called “Bitcoin wallets” are available as Windows applications such as Bitcoin Core and as modern web applications. Transactions are sent to pseudonymous addresses, which are generated by the software for every participant. This method has a great advantage that it does not make it possible to identify the transaction participants. However, the system does not guarantee 100% anonymity, since all transactions are recorded in a public transaction journal so that it is basically possible to link individual Bitcoin addresses with private information. As with real money transactions and payments, a Bitcoin transaction cannot be undone after it has been confirmed on the Bitcoin network. Confirming a transaction typically takes up to 5 minutes, but if the fees are very low, it can take several hours. A fee may also be added when performing a transaction. Transactions with higher fees are given priority.

Why is Bitcoins crypto trading becoming more important?

The still relatively unknown digital currency Bitcoin offers investors the prospect of high returns. In hardly any other trading area you have the opportunity to make as high profits as with Bitcoin trading. The independent and decentralized cryptocurrency is becoming increasingly popular due to the general distrust of global markets and the unfavorable political situation. As a result, the demand for bitcoins is increasing, so that the value of bitcoins is growing steadily. The risks that apply to general trading should not be ignored here either. All trades with which you can make high profits are also associated with correspondingly high risks.

The following provider is regulated by the CySEC.

ETORO – Best Bitcoin Trading Platform

Trading PlatformFeatures We LikeRatingLink to Platform
  • Simple trading platform

  • Easy to understand even for beginners

  • Social trading possible

  • Many markets tradable
9.9

What should you look for when trading Bitcoins?

trading bitcoin

When trading or paying with Bitcoin trading, it is important to note some special conditions. Because only then can the greatest possible security be guaranteed. Since the value of bitcoins is primarily dependent on supply and demand, price fluctuations when trading with bitcoins can be considerable. This is mainly due to the fact that many traders often only bet on short-term fluctuations in prices and profits. This often leads to strong downward and upward trends. The strength of these trends depends on the number of buyers or sellers that the speculators bring with them. In the event of unsteady price fluctuations, it is advisable to act thoughtfully and to keep a cool head, as is the case with traditional trading in stocks and foreign exchange. One should follow the long-term development of the Bitcoin trading price and wait with the transactions until the fluctuations in the market have smoothed out somewhat. Likewise, the price development of the US dollar should always be followed, since the Bitcoin currency is largely traded in US dollars.

News and other important news about the Bitcoin currency are spread extremely quickly on the Internet. Since Bitcoins are a kind of “Internet currency”, the digital currency is extremely sensitive to news from the community and Bitcoin developers. In many cases, the veracity of the news is not even crucial, but it is much more important how quickly the news spreads and how many traders do their trades accordingly. This can lead to strong price fluctuations, which in many cases result in high losses if you act panicky or headless in such unfortunate situations. It is often the case that the Bitcoin price stabilizes after a certain period of unrest and increases steadily in the long term. Trading in bitcoins is not yet so common among the general public and many investors. If you take a closer look at the current situation on the global financial markets, which is characterized by general uncertainty and where conventional stocks and currencies can have an enormous impact, there is a high probability that interest in a transnational and decentralized currency will continue to grow in the future becomes. As a result, it is very likely that the value of Bitcoin will also increase steadily in the following years.

Advantages and disadvantages of trading Bitcoins online

The advantages and disadvantages of Bitcoin trading depend primarily on the respective broker because different brokers offer different advantages and disadvantages. For example, eToro offers the great advantage of preserving the value of the cryptocurrency, since this provider does not allow speculation on losses in the value of the currency. This effectively prevents short sales, which in many cases can result in huge price fluctuations. For traders who like to speculate on falling prices, this fact is of course not very pleasing. For the majority of traders, however, this is a very positive and welcome signal that indicates a stable currency, even if it only exists virtually. Since Bitcoin is still a relatively new asset, the exact assignment is still rather inconsistent.

Although Bitcoin is viewed by the stock exchanges as a digital currency that can now be used to pay for both products and various services, for example, at eToro it is not considered a foreign exchange investment but is listed in the finance category. Investors and investors who rely on traditional values ​​may find it a certain disadvantage that Bitcoin has no real value, such as a real company with real assets. Added to this is the fact that no dividend payment is possible with this type of investment. Another possible disadvantage for Bitcoin trading could be that this digital currency is not secured by the state. Banks and other financial institutions provide government protection for certain types of investment. Since Bitcoin is both created virtually and stored virtually, these state safeguards do not apply. In addition, special fees are charged for trading in the virtual currency on the stock exchanges, which are significantly more than for traditional stock trading.

How can you trade Bitcoins on the eToro Crypto Platform?

EToro is a first-class platform, especially for inexperienced traders. But also common software. But back to eToro. As one of the largest social trading platforms, eToro offers its users the opportunity to copy investment strategies and investment portfolios from experienced traders. As an inexperienced trader in this network, you too can benefit from the experience of successful Bitcoin traders and take advantage of their trading strategies. In return, if you are very successful with your own portfolio and your trading strategies, then in return there is a possibility that you will attract the attention of followers who copy your trading strategies or the portfolio. Successful trading, which is followed by as many followers on the social trading platform as possible, will be rewarded accordingly by eToro. In this way, many traders have created a regular income with eToro with considerable income for the development of successful and sustainable investment strategies. If you want to specialize in Bitcoin trading on the eToro social trading platform, you can benefit from the experience of other traders.

With eToro, you as a trader do not directly become the owner of the purchased bitcoins, since all transactions are supervised by eToro. These measures are designed to protect traders from a complete breakdown and loss of bitcoins. The social trading network eToro has now registered more than 6 million traders who carry out thousands of transactions every day, making eToro one of the most famous social trading platforms in the world today.

Trading PlatformFeatures We LikeRatingLink to Platform
  • Simple trading platform

  • Easy to understand even for beginners

  • Social trading possible

  • Many markets tradable
9.9

Can a Bitcoin transaction be tracked?

Bitcoin is absolutely transparent. All Bitcoin transactions are publicly available, verifiable and permanently stored in the Bitcoin network. The Bitcoin address is used to define where the Bitcoins are and where they are being transferred to. These addresses are created individually from the users’ electronic wallets (Bitcoin Wallet). Since users usually have to identify themselves in order to receive services or goods, Bitcoin addresses cannot be 100% anonymous. As already mentioned, the Bitcoin network is a peer-to-peer network, which makes it possible to log a participant’s IP address.

Which countries support Bitcoin as a currency?

The legality of the virtual currency varies from country to country, but more and more countries are recognizing Bitcoin (BTC) as currency. Unlike established currencies such as the US dollar or the euro, Bitcoin is not dependent on central banks. The Bitcoin network also has no central focus or sole administrator – these properties make Bitcoins a decentralized digital currency.

The basic Bitcoin value is generated by the mining described above and is based on the costs for hardware and power supply that are necessary to carry out this process. The limited availability of bitcoins, the slow creation process, and increasing demand are driving the Bitcoin price even higher. Bitcoins are spreading more and more as a recognized means of payment around the world, which of course also benefits their value.

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