A very interesting trend that has emerged within the forex industry is the increasing popularity of Bitcoin among the brokers.
If we look back at times when the digital currency was struggling to impress potential adapters, and compare it with its current progressions, we would definitely notice contradictions between both. Speaking specifically in terms of forex trading, Bitcoin adaption has truly rocketed. This article is intended to explain how a digital asset could possibly revolutionize the forex brokerage sector.
What is Bitcoin?
Bitcoin can be defined as an online digital asset that possess the quality of being a commodity, as well as a currency. It is because of its underlying functionary that allows people to store it as a form of investment (like Gold), as well as spend it to purchase goods and services (like money). Therefore, Bitcoin emerges as a great addition to traditional forex and commodity investments. This is the one of the reasons why online forex brokers today are taking a keen interest in studying and integrating Bitcoin into their trading platforms.
One of the most attractive features of Bitcoin is: its independence from centralized authorities. The Bitcoin tokes are issued through a consensual computational process called “mining”. This feature doesn’t require any policy decisions of central banks, nor the intervention of government. Instead, Bitcoin is minted by a network of “miners”, with each one of them contributing a certain amount of computational power to create “blocks” — a packet which contains Bitcoin.
Why Bitcoin is Popular among Forex Brokers?
Bitcoin was introduced to forex markets in 2008, but gained traction only around 2013 when its value rocketed to near $250. It was then forex brokers started noticing it as a serious contender of next-generation trading market.
Another reason why Bitcoin became popular among the brokers was its speedy and secure transaction mechanism. Compared to the traditional remittance methods — such as Western Union, MoneyGram, Wire Transfer, PayPal, etc. — Bitcoin was fast and cheaper. Consequently, its features gained him a considerable adaption in the binary options industry.
Forex Brokers Supporting Bitcoin Trades (BTC/USD)
Initially, it was IG and Plus500 that started offering leveraged BTC/USD Bitcoin trading on their platforms. But as the digital currency gained popularity, many other forex brokers came and joined the Bitcoin bandwagon. Today, some of the leading forex brokers offer digital currency trading, which includes the reputable names like AvaTrade, TradeRush, AnyOption, JustForex, and many others.
As the trend picks up, we would be hoping to see an imminent surge in Bitcoin adaption. The technology has already drawn support from leading financial firms like Nasdaq, NYSE, Barclays, UBS, etc. In no time, we can see Bitcoin becoming the leading trading alternative.