So, according to Forbes, Bitcoin is the new Gold?
If by that they mean a wildly volatile and unpredictable financial instrument that can be speculated on with massive leverage then they are probably right.
But, if you haven’t traded or bought Bitcoin before where should you get started?
Please note that since this article was written the FCA has banned retail traders from trading cryptocurrency derivatives. If you would like to speculate on Bitcoin and cryptocurrencies you need to use a cryptocurrency exchange or professional trading account.
Firstly you need to decide why you want to buy Bitcoin. Are you just speculating on the price or do you want to buy physical Bitcoins to make ah hem purchases with?
With all types of investing and trading in volatile products, you can lose all or more than your initial deposit so make sure you manage your risk
Here is the main difference between the three types:
- Spread betting – is trading as a bet so there is no capital gain tax on profits
- CFD – Contracts for difference are trades based pricing and you can trade with direct market access
- MT4 – is just a trading platform that spread betting and CFD brokers provide as well as their own in house platform (it has some bells and whistles and can auto trade).
If you’re buying Bitcoin for physical purchases you need to go to a Bitcoin cryptocurrency exchange.