Make more of your money by comparing accounts for investing, trading & currency transfers.
The answer is, of course, yes and no. You can make money trading Bitcoin, if you buy low and sell high. Or, if you’re a bear, sell high, buy low.
But if the question is “can YOU make money trading Bitcoin” I’m afraid the answer is probably no. The majority of people who trade highly volatile products like Forex tend to lose money. In fact, the recent regulatory changes have forced forex brokers to publicise the percentage of the clients that make money trading.
But just because most people lose money trading, it doesn’t mean you will. But you probably will, especially if you are trying to make money trading Bitcoin, because unlike Forex trading, index trading or investing in the stock market, where the markets have fundamental value and are swayed by economic events, crypto trading is driven entirely by sentiment.
Which of course makes it harder to predict. And being such a volatile asset class means that crypto prices can move dramatically. A main market stock, for instance, may move 5% a day. An FX pair like EURUSD around 1%. But a crypto can double or half in the blink of an eye.
So, if you do think you can make money trading Bitcoin, be prepared to lose all your money doing so…
Don’t get scammed by Bitcoin trading adverts.
From Peter Jones to PSY, new scam adverts advertising get rich quick Bitcoin schemes are flooding the internet.
Despite a global ban from Google on non-regualted brokers advertising derivatives products, they are still getting through. Amazingly you see them in the header of the DailyMail and other mainstream media websites.
What’s shocking about this is that they all seem to point to the same scam and no-one has been able to shut it down yet?
Martin Lewis, the money-saving-guru from Money Saving Expert, recently sued Facebook because they failed to stop scammers using his image in scam ads for get rich quick Bitcoin schemes. Martin Lewis settled with Facebook for a £3m charitable donation in the end
So, are there any genuine Bitcoin traders in the UK?
The answer is of course yes. There are many traders who trade Bitcoin. Some do it through spread betting where profits are tax-free. Other clients who want to offset CFD loses against their capital gains allowance may opt for CFDs.
If there is a Bitcoin trader who has a decent track record and wants to try and make some money by being a quasi-fund manager through social trading they’ll be on an FCA regulated social trading broker line eToro or ayondo.
They will not, I repeat not, be marketing their services as a get rich quick scheme. In fact they are not allowed to advertise at all.
So if you see an advert for Bitcoin investing, it’s a scam (unless it’s from an FCA regulated crypto broker).
We’re already written about how not to get scammed in crypto trading so won’t go into that again.
But suffice to say, if it looks like a scam. It’s a scam. And, always check the FCA register for any broker you deal with.
Keep in mind too though that the scammers make clone websites, of real brokerages to scam you. So, double and triple check any broker before sending money.
A quick google search can save you from being a victim.
Where can you get Bitcoin trading ideas and analysis online?
Never believe anyone who says they can make you rich or adopt trading as a career if you are a complete beginner.
Trading CFDs and spread betting are high-risk forms of investment and should only really be used for hedging and a small percentage of a self-managed investment portfolio.
However, if you do want trading ideas you can find news and analysis on Bitcoin here:
Bitcoin News & Trading Idea Sources
- Most brokers like IG, will have a bitcoin news page
- TradingView provides excellent crypto charts and lots of users post trading ideas.
Keep aware and don’t get scammed…
Compare Vetted Investing, Trading & Currency Accounts
|Investing Accounts||Trading Platforms||Currency Transfers|
Looking for an institutional broker? Compare prime brokers here
Richard founded the Good Money Guide (previously Good Broker Guide) in 2015 and has been a broker for 20 years most recently at Investors Intelligence and previously a multi-asset derivatives broker at MF Global (Man Financial). Richard started his career working as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson) after interning on the NYMEX oil trading floor in New York and London IPE in 2001 & 2000.