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. Most of the time, your decisions on Bitcoin trades will only come from speculations, which is high risk. 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. If the prices still keep going down, you’ll realize that you should’ve sold your Bitcoin. Traders who want to take on that risk should use only a locally regulated forex brokerage. That’s the number one rule to become a successful Bitcoin trader. In forex trading, dealing in a decentralized currency that offers global transactions with no fees is an advantage. Although cryptocurrencies like bitcoin are gaining popularity, there are still many associated risks. By this time, it’ll be too late to sell. As mentioned, when trading Bitcoin, prices can quickly go very high or very low.the best bitcoin wallet app Unlike tourists who exchange their home currency for local spending money, forex traders are trying to make money off the continual fluctuations in the real value of one currency against another. Most forex trading is conducted in a decentralized fashion via over-the-counter markets. That’s the number one rule to become a successful Bitcoin trader. 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. But the tradeoff is essentially adding a third currency to what was a trading pair. 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. On the other hand, if you don’t have any target price for taking your profits, you’ll start becoming greedy as the prices keep going up. 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.