ETX Capital launches Bitcoin trading

ETX Capital, one of the leading spread betting and CFD brokers in the UK has launched a bitcoin trading service for spread betting and CFD customers.

The majority of UK based and FCA regulated brokers still do not offer Bitcoin trading, there are of course a load of Cyprus based brokers that do, but you’re better off with a UK Based and properly regulated broker.

It’s good to see more mainstream brokers embracing cryptocurrencies and providing access so UK traders can speculate with FSCS protection and not have to deal with off shore brokers.

You can compare brokers for Bitcoin and other crytocurrency trading here.

If you want to trade Bitcoin with ETX select the FX tab and choosing Cryptocurrency on the platform.

What is Bitcoin?

  • Bitcoin is a cryptocurrency that is not backed by any central organisation like a government or bank.
  • But just like other currencies it can be speculated on.
  • This means it is very risky, expect high volatility and the potential for the cryptocurrency to go to zero or through the roof.

Why trade Bitcoin through a derivatives broker rather than a Bitcoin exchange?

Owning Bitcoin requires the user to have a digital wallet to store the coins. Spread betting and CFDs allow traders to speculate on the currency without this requirement.

You can go either long or short, meaning you can take advantage of price swings whatever view you take.

You can also use a CFD or spread bet to use leverage to trade meaning you have to only put down a small deposit known as margin.

With a Bitcoin exchange, you cannot use margin and must pay for your Bitcoin in full. You also cannot go short Bitcoin through a Bitcoin exchange.

Trading Bitcoin on leverage does mean you can have a bigger position, but with leverage comes risk. Expect a very high amount of risk in Bitcoin speculation as margin rates are low, but volatility is high.

You will be able to trade Bitcoin with ETX Capital from 23:00 on Sunday until 21:55 on a Friday (UK times).

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ALL INVESTING INVOLVES RISK. Investing, Derivatives, Spread betting and CFD trading carry a high level of risk to your capital and can result in losses that exceed your initial deposit. They may not be suitable for everyone, so please ensure that you fully understand the risks involved.
ESMA & FCA Risk Warning – “CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 68-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Capital at risk”