A forex trade is simply an exchange of one currency for another at its current rate. But because cryptocurrencies are such a brand-new asset class, even experienced investors may find themselves asking, “How do I trade bitcoin?” Since Bitcoin is the most known cryptocurrency, many people started trading Bitcoin online. 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. But even though talk about “trading pairs” just like forex traders, trading bitcoin is not like forex in important ways. Because of the popularity of cryptocurrency, a market was born to specifically trade cryptocurrency. Before you consider whether to trade forex using bitcoin, it's helpful to understand how a conventional forex trade works. In addition to these differences, experts like Investopedia recommend trading bitcoin at a regulated cryptocurrency exchange, such as Gemini Trust, rather than a traditional forex exchange, because cryptocurrency exchanges understand the market and security requirements better than forex markets.where to buy bitcoins Before you consider whether to trade forex using bitcoin, it's helpful to understand how a conventional forex trade works. Traders who want to take on that risk should use only a locally regulated forex brokerage. Meanwhile, is typically valued at less than $100 billion per day, though it rose slightly above $1 trillion on two days in 2018. The price behavior of Bitcoin can be very volatile. Although cryptocurrencies like bitcoin are gaining popularity, there are still many associated risks. That’s the number one rule to become a successful Bitcoin trader. If the prices still keep going down, you’ll realize that you should’ve sold your Bitcoin. Bitcoin’s legendary price volatility can excite many investors and traders—especially day traders. A forex trade is simply an exchange of one currency for another at its current rate. Taking away the thought of losing all of your savings will make you a better trader by preventing you from “panic selling.” So, today, it’s better to think of more simply: it’s like buying an asset, watching its price rise or fall, and choosing to hold or sell it at a later time. 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.