Although cryptocurrencies like bitcoin are gaining popularity, there are still many associated risks. It's the job of those banks to stabilize the value of their currencies and keep them stable. For comparison, the value of global stock trading is estimated at only a few hundred billion dollars per day. A forex trade is simply an exchange of one currency for another at its current rate. Because of the popularity of cryptocurrency, a market was born to specifically trade cryptocurrency. If you’re familiar with forex trading, trading bitcoin is most like “spot” trading a currency pair. Traders who want to take on that risk should use only a locally regulated forex brokerage. Before you consider whether to trade forex using bitcoin, it's helpful to understand how a conventional forex trade works. Mostly, those ways have to do with the fact that bitcoin was invented in 2008, not centuries ago like most forex-traded currencies. Bitcoin, a type of cryptocurrency, has piqued the interest of so many people. Most of the time, your decisions on Bitcoin trades will only come from speculations, which is high risk. Before you consider whether to trade forex using bitcoin, it's helpful to understand how a conventional forex trade works. 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.get bitcoins with debit card Because of the popularity of cryptocurrency, a market was born to specifically trade cryptocurrency. Then, you start thinking that it’ll still go up and end up not selling. Having a cut loss target will prevent your emotions from getting in the way. 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. Before you consider whether to trade forex using bitcoin, it's helpful to understand how a conventional forex trade works. Bitcoin’s legendary price volatility can excite many investors and traders—especially day traders. 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. However, there will be a time that prices will suddenly go down. Consequently, bitcoin trading is simpler and more straightforward than forex. But even though talk about “trading pairs” just like forex traders, trading bitcoin is not like forex in important ways. So, it’s also important to set a target to take your profit.