For instance, there will be a time when the prices start going down. As mentioned, when trading Bitcoin, prices can quickly go very high or very low. A forex trade is simply an exchange of one currency for another at its current rate. Although cryptocurrencies like bitcoin are gaining popularity, there are still many associated risks. Having a cut loss target will prevent your emotions from getting in the way. Forex is far-and-away the world’s largest market, with daily trading volumes around $6.6 trillion, according to the Before you even start trading, don’t use all of your savings to trade Bitcoin. That’s the number one rule to become a successful Bitcoin trader. Although cryptocurrencies like bitcoin are gaining popularity, there are still many associated risks. Although cryptocurrencies like bitcoin are gaining popularity, there are still many associated risks. Setting a target, both buying and selling, will help you avoid acting greedy on a trade. If you want to become a trader as well, here are some Bitcoin trading tips you need to consider in order to be successful. However, the fact that the forex market is decentralized and that bitcoin is considered to be a decentralized digital currency does not mean that the two are equivalent. The key distinction is that, though forex exchanges might be decentralized, the currencies themselves are backed by central banks in the countries that issue them.purchase bitcoin with credit card Traders who want to take on that risk should use only a locally regulated forex brokerage. By making it a rule to trade only what you can lose, you won’t be very tense and worried when you’re trading Bitcoin since you can shoulder the losses. But the tradeoff is essentially adding a third currency to what was a trading pair. That’s the number one rule to become a successful Bitcoin trader. Because of the popularity of cryptocurrency, a market was born to specifically trade cryptocurrency. To prevent yourself from making impulse decisions when high volatility occurs, it’s very important for you to determine your limits. is that you have to determine and set a price that you’re willing to cut loss or take profit before the trade. Having a cut loss and a profit target price will help keep you level-headed in times of pressure during a trade. Another key difference is that the IRS treats bitcoin as property, not currency, for tax purposes, so the tax consequences of bitcoin trading may be different from trading fiat currencies. Bitcoin, a type of cryptocurrency, has piqued the interest of so many people. Because of the popularity of cryptocurrency, a market was born to specifically trade cryptocurrency. Bitcoin is a digital currency, so investors may think of it in terms of the foreign currency exchange (forex) market. Mostly, those ways have to do with the fact that bitcoin was invented in 2008, not centuries ago like most forex-traded currencies.