How To Trade Bitcoin Futures

The Three Best Ways to Trade Bitcoin

3 Ways To Trade Your Hard Earned Bitcoin

Still, many people are unsure of how to best take advantage of Bitcoin’s high volatility and unique trading possibilities. Therefore, we thought we’d give you a quick rundown of the best ways to trade Bitcoin right now.

Bitcoin has experienced a rough year in 2018, and so has the rest of the cryptocurrency market, but that doesn’t mean that the market hasn’t presented trading opportunities, rather the opposite. Also, experts agree that the market will soon hit bottom and after that, there will be excellent opportunities for investors.

1. Derivatives Trading – For Day Traders and Hobby Traders

According to many of the most hardcore cryptocurrency day trading experts, the best way to trade Bitcoin is by using derivatives such as CFDs. The main benefit of using derivatives is that you can easily make a good profit regardless of which direction the market is moving.

Since you don’t buy Bitcoin when using CFDs but rather invest in how you think the market is going to develop, you can quickly short-trade any instrument. Another great benefit of derivatives trading is that you get to use leverage to maximize your profits.

In other words, derivatives trading is excellent for Bitcoin and other cryptocurrencies because it allows you to benefit from a volatile market and at the same time maximize your profits by using leverage. When the market is crumbling, Bitcoin derivatives is your solution.

In order to day trade Bitcoin using CFDs, you have to sign up with a cryptocurrency broker (LINK) and start an account. The process is very easy, and you can start trading Bitcoin already later today.

2. Exchange Trading – One of the Most Popular Ways to Trade Bitcoin

One of the more typical ways of trading Bitcoin is through a cryptocurrency exchange such as Binance or Kraken. Compared to CFD trading with a broker, exchanges allow you to buy actual cryptocurrencies and either trade them against each other or fiat currencies.

When you use an exchange to trade Bitcoin, you own your instruments which has several benefits. For example, this means that you can transfer your Bitcoins to a wallet or another service and use Bitcoin as a currency or hold on to it as a long-term investment.

Most experts would agree that cryptocurrency exchanges are the most “real” way of trading cryptocurrencies, and you can read more about this type of Bitcoin trading on (LINK).

3. Long-Term Investments – Make a Profit from Bitcoin Over an Extended Period of Time

The third way that one can trade Bitcoin is not actually trading but long-term investments similar to a stock of commodity investments. If you’re interested in buying Bitcoin as a long-term investment, you first need to find an exchange or service that will let you buy Bitcoin using a fiat currency such as Coinbase.

After you’ve purchased your Bitcoins you want to store them somewhere safe, for example, in an e-wallet or a physical wallet, the most popular being Ledger Nano S.


There are three main ways that one can trade Bitcoin and they all serve different purposes. Derivatives trading using CFDs are best suited for day traders that want to benefit from volatility and make a profit even when the market is falling. Cryptocurrency exchanges can also be used for day trading but are better suited for good market conditions. And lastly, long-term investments are a great way to make a profit from Bitcoin over longer periods of time.

Now, you don’t have to pick either one of these methods if you don’t want to. Many day traders combine all three ways of trading Bitcoin to optimize their opportunities and benefit from their unique characteristics.

In the end, it’s up to you to decide which method you want to use.