Bitcoin is a digital currency, so investors may think of it in terms of the foreign currency exchange (forex) market. 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. Because of this, you must only trade an amount that you’ll be comfortable losing. If you want to become a trader as well, here are some Bitcoin trading tips you need to consider in order to be successful.  However, the fact that the forex market is decentralized and that bitcoin is considered to be a decentralized digital currency does not mean that the two are equivalent. The key distinction is that, though forex exchanges might be decentralized, the currencies themselves are backed by central banks in the countries that issue them. By making it a rule to trade only what you can lose, you won’t be very tense and worried when you’re trading Bitcoin since you can shoulder the losses. Forex is far-and-away the world’s largest market, with daily trading volumes around $6.6 trillion, according to the  Before you even start trading, don’t use all of your savings to trade Bitcoin. In forex trading, dealing in a decentralized currency that offers global transactions with no fees is an advantage. Then, you start thinking that it’ll still go up and end up not selling. For instance, there will be a time when the prices start going down.how to purchase bitcoins with credit card 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. Consequently, bitcoin trading is simpler and more straightforward than forex. Because of the popularity of cryptocurrency, a market was born to specifically trade cryptocurrency. A forex trade is simply an exchange of one currency for another at its current rate. Another key difference is that the IRS treats bitcoin as property, not currency, for tax purposes, so the tax consequences of bitcoin trading may be different from trading fiat currencies.  Bitcoin, a type of cryptocurrency, has piqued the interest of so many people. Having a cut loss and a profit target price will help keep you level-headed in times of pressure during a trade. So, it’s also important to set a target to take your profit. Bitcoin, a type of cryptocurrency, has piqued the interest of so many people. 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. A forex trade is simply an exchange of one currency for another at its current rate.