How to Trade Bitcoin, Bitcoin Cash and Bitcoin Gold CFDs in 4 Easy Steps
- Open a trading account with AvaTrade
- Fund your account
- Choose between Bitcoin (BTC) or Bitcoin Cash (BCH)
- Fill-in your preferred investment amount
- Buy (go long) or Sell (go short) Bitcoin
Bitcoin is the world’s first digital currency and it is expanding in popularity worldwide. Now, traders can trade Bitcoin with AvaTrade as the ideal asset in CFD trades. With our platform – MetaTrader 4you can trade this rapidly growing currency against the greenback, 24/7. Bitcoin, Bitcoin Cash and Bitcoin Gold are highly regarded among currency traders and their volatile nature makes them ideal for CFD trading.
This new cryptocurrency created by the bitcoin hard fork on August 1, 2017, made a new version of the blockchain with different rules. By switching from the main bitcoin blockchain to a new version, the software now has capacity for a larger number of transactions.
Bitcoin Gold is the second fork from Bitcoin (i.e. the second version to stem from Bitcoin’s source code). It does retain Bitcoin’s transaction history, meaning if you owned Bitcoins before the fork, you now own the equal amount of Bitcoin Gold. This cryptocurrency aims to introduce an alternative mining algorithm that is less susceptible to ASIC-based optimisation, therefore allowing users to earn more with their computer cycles.
Why Trade Bitcoin, Bitcoin Cash and Bitcoin Gold with AvaTrade
- We offer Bitcoin CFD trades with up to 20:1 leverage
- You can start trading Bitcoin from as little as £250/$250/€250
- Volatility makes for an excellent addition to any financial trading portfolio
- The Bitcoin market is available to traders’ 24/7, for maximum convenience
- You can sell Bitcoin (go short) and potentially profit even when the market price is downtrend
- Enjoy live language-specific customer support around the clock
- AvaTrade offers zero commissions on Bitcoin trading and no bank fees charged on transactions
- Live language-specific customer support 24 hours 5 days a week
- Zero exposure to hacking or theft simply because you don’t actually buy or sell the cryptocurrency
- AvaTrade is regulated on 5 continents
- Execute trades in just 3 clicks, free from the complex crypto purchasing process
When trading with AvaTrade you are trading on the price changes of the digital coin, and not physically purchasing it.
- The maximum accumulated position size for Bitcoin is 100 BTCUSD (10 LOTS).
- The maximum accumulated position size for Bitcoin Cash is 100 BCHUSD (10 LOTS).
- The maximum accumulated position size for Bitcoin Gold is 100 BTGUSD (10 LOTS).
How Bitcoin Became So Popular
Bitcoin was the first digital currency to be created. It is also the most respected, capitalised and traded cryptocurrency in the world. Bitcoin trading is booming, and a big reason for this is the volatility of this cryptocurrency. Currency trading allows for maximum yield when it is volatile – lots of ups and downs. This is precisely the reason global traders enjoy trading Bitcoin. Plenty of profitable opportunities are available when markets are volatile, and Bitcoin ranks highly with currency traders.
The media plays a big part in the volatility of Bitcoin. Whenever a breaking story surfaces, Bitcoin volatility increases, and traders cash in. History has shown that Bitcoin traders and speculators routinely push this digital currency to the forefront of CFD trading. It is increasingly being used as the preferred payment option for merchants, money transfers and trading purposes. More traders are turning to Bitcoin trading than ever before, and that is why this cryptocurrency is inherently valuable. It is a high demand financial trading instrument, despite no association with governments or central banks.
Bitcoins are mined with powerful computer hardware and software. A maximum of 21 million Bitcoin will be available, after which no further bitcoins will be produced. The algorithm which governs the production of Bitcoin limits the quantity that will be produced, and the rate at which they will be produced. It is a finite commodity – there is a fixed amount, and that ensures that greater demand will always prop up the price. In this way, it is similar to other finite commodities such as crude oil, silver, or gold.
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Bitcoin’s Rise to Prominence
Around 2008, Satoshi Nakamoto founded Bitcoin. At the time, a paper was published through the Cryptography Mailing List. The first Bitcoin software client was released in 2009, and he collaborated with many other developers on the open-source team, careful never to reveal his identity. By 2011, the enigmatic Bitcoin founder had disappeared. His peers understood how valuable this cryptocurrency was, and worked feverishly to develop it to its maximum potential.
By October 2009, the world’s first Bitcoin exchange was established. At the time, $1 was the equivalent of 1,309 Bitcoin. Considering how expensive Bitcoin is today, that was a real steal. Bitcoin traded at a fraction of a penny for quite some time. Things started changing in 2010; as the distribution of Bitcoin increased, the digital currency became inherently more valuable. Demand increased, reversing the exchange rate accordingly. In early 2010, the currency was gaining momentum, and so the distribution of the Bitcoin started to increase along with its demand. By November of that year 4 million Bitcoins had been ‘mined’.
And so, the rise of the Bitcoin began…
Bitcoin in the News
- August 2017 – Bitcoin reaches a market capital of over $73.4 billion. This is the start of the Bitcoin Boom
- First half of 2017 – Bitcoin hits a high of $2900, and worldwide demand for digital currency soars.
- August 1, 2017 – First fork in Bitcoin was created: Bitcoin Cash
- October 24, 2017 – The second fork in Bitcoin was created: Bitcoin Gold
- October 29, 2017 – Bitcoin hits a new record high of $6,300
- November 28, 2017 – Bitcoin Reaches and unprecedented high of $11,000
- December 10, 2017 – Cboe Futures Exchange (CFE) starts offering Bitcoin futures trading
- December 17, 2017 – Bitcoin keeps climbing, almost hitting the $20,000 mark, setting its new record high
- December 18, 2017 – CME Group’s Bitcoin futures are available for trading
- December 21, 2017 – Bitcoin slumped by almost 21%. At market opening Bitcoin was at $15,561 later reaching a low of $12,504, closing with a slight recovery of $13,942/li>
- December 23, 2017 – The cryptocurrency plummets to $11,000, before seeing its positive recovery to end the year
- December 28, 2017 – Third fork in Bitcoin created: New coin on SegWit2x chain called B2X
We are Here to Help You Trade Bitcoin, Bitcoin Cash and Bitcoin Gold
AvaTrade offers you the opportunity to Buy (go long) or Sell (go short) on all Bitcoin trades. This service is available to you 24/7. You can use your preferred trading strategies to buy or sell Bitcoin/Bitcoin Cash/Bitcoin Gold regardless of which way the currency is moving.
We encourage you to learn more about Bitcoin trading by visiting our Trading Conditions & Charges page.
Please note: The cryptocurrencies market’s high volatility offers endless trading opportunities.
Due to price fluctuation, certain crypto pairs may be suspended and/or removed from our trading platforms periodically.