With more than $5 million traded on an average day, rising to a $6.6 trillion peak in 2019, it’s clear the forex market is the largest and most liquid market in the world. Operating 24/7 across four main trading sessions, forex involves the exchange of global currencies with cryptocurrencies like Bitcoin giving the market a fascinating new dimension.

    In recent years, many forex brokers like 4xCube have started to accept cryptocurrencies for currency trading. But what are the benefits of using crypto for funding a trading account? And is it more convenient than sticking to traditional currency pairs like EUR/USD? Let’s delve in…

    Bridging the gap between fiat and crypto

    For simplicity, let’s focus on one of the most famous cryptocurrencies – Bitcoin. If you want to bridge the gap between fiat and crypto, it’s perfectly possible. You simply need to find a broker that’ll accept Bitcoin (or which ever cryptos you want to trade) and open an account. You can then transfer Bitcoins from your digital wallet to the forex broker’s digital wallet before entering a trade. As with all forex traders, you must look closely at the exchange rates and analyse the market carefully in order to try and gain a profit.

    If the current Bitcoin (BTC) to U.S. Dollar (USD) exchange rate is 1 Bitcoin = $7,500, it means a deposit of 2 Bitcoins will be equivalent to $15,000 at that given time.

    Benefits of trading FX with crypto

    If you’re wondering whether to start trading crypto in the FX markets, it’s important to do your research and make a strict trading plan, particularly if you’re new to FX or have never paired cryptocurrencies with fiat currencies before. Play around with a demo account when possible and remember that forex trading is never without risks. Knowledge is key so make sure you’re firmly clued up and use the relevant tools provided by your platform.

    Advantages of trading forex with cryptocurrencies like Bitcoin include:

    Decentralised nature

    Bitcoin is a decentralised currency meaning it’s not controlled by a middleman. This is advantageous in the world of FX for many reasons. Firstly, cryptocurrencies are not influenced by geopolitical factors. No bank is going to change market valuations overnight because banks don’t control the way cryptocurrencies work. What’s more, macroeconomic fluctuations caused by countries adjusting their interest rates or geo-specific inflation are not going to impact Bitcoin it the same way a fiat currency could be.

    Global boundaries are eliminated

    Bringing two decentralised networks together opens many new opportunities and global boundaries are eliminated. So, a forex trader in the US can make a Bitcoin trade with someone based in the United Kingdom without the red tape associated with many fiat-related trades. Experienced traders can also benefit from high leverage that’s appealing to those looking to potentially earn more from each trade. Although, don’t forget that high leverage means high risk levels.

    High security

    When it comes to Bitcoin transactions, you do not have to share personal banking or credit card information for depositing or withdrawing funds as you would for fiat currencies. This is a major plus for maximum security when dealing with forex brokers.

    The forex world is changing, with crypto now playing a key part. Speak to 4xCube.com today for a more detailed, AI-enhanced approach to navigating the forex markets.

    * Disclaimer: Highway Media Group will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

    Currency trading on margin involves high risk, and is not suitable for all investors. Trading or investing in cryptocurrencies carries with it potential risks.

    Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Cryptocurrencies are not suitable for all investors. Before deciding to trade foreign exchange or any other financial instrument or cryptocurrencies you should carefully consider your investment objectives, level of experience, and risk appetite.

    Highway Media Group would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures), Forex and cryptocurrencies prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes.

    CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.

    Therefore, Highway Media Group doesn’t bear any responsibility for any trading losses you might incur as a result of using this data. Highway Media Group may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.