How to trade Bitcoin CFDs in 4 easy steps
- Open a trading account with AvaTrade
- Fund your account – in local AUD or international USD, GBP or EUR
- Fill in your preferred investment amount
- BUY (go long) or SELL (go short) Bitcoin
What is Bitcoin
Bitcoin, the world’s first digital currency, has expanded in popularity in Australia and across the world. Now, traders can trade Bitcoin with AvaTrade as the ideal asset in CFD trades. With our platform – MetaTrader 4 you can trade this rapidly growing currency against the US Dollar 24/7. Bitcoin is highly regarded among currency traders and its volatile nature makes them ideal for CFD trading.
Bitcoin’s rise to prominence
Around 2008, Satoshi Nakamoto founded Bitcoin. At the time, a paper was published through the Cryptography Mailing List. The first Bitcoin software client was released in 2009, and he collaborated with many other developers on the open-source team, careful never to reveal his identity. By 2011, the enigmatic Bitcoin founder had disappeared. His peers understood how valuable this cryptocurrency was and got cracking to develop it to its full potential.
By October 2009, the world’s first Bitcoin exchange was established. At the time, $1 was the equivalent of 1,309 Bitcoin. Considering how pricey Bitcoin is today, that was a dead set bargain. Bitcoin traded at a fraction of a penny for quite some time. Things started changing in 2010; as the distribution of Bitcoin increased, the digital currency became inherently more valuable.
Demand increased, reversing the exchange rate accordingly. In early 2010, the currency was gaining momentum, and so the distribution of the Bitcoin started to increase along with its demand. By November of that year 4 million Bitcoins had been ‘mined’.
And so, the rise of the Bitcoin began…
Why trade Bitcoin with AvaTrade
- We offer Bitcoin CFD trades with up to leverage
- You can start trading Bitcoin from as little as
- This volatile crypto makes for an excellent addition to any financial trading portfolio
- AvaTrade is one of the only brokers that offer Bitcoin trading around the clock, for maximum convenience
- You can sell Bitcoin (go short) and potentially profit even when the market price is downtrend
- Enjoy live customer support in Australia, around the clock
- AvaTrade offers zero commissions on Bitcoin trading and no bank fees charged on transactions
- Zero exposure to hacking or theft simply because you don’t actually buy or sell the cryptocurrency
- AvaTrade is regulated on 5 continents and is an Australian Securities and Investment Commission (ASIC) regulated firm
- Execute trades in just 3 clicks, free from the complex crypto purchasing process
How Bitcoin became so popular
Bitcoin was the first digital currency to be created. It is also the most respected, capitalized and traded cryptocurrency in the world. Bitcoin trading is booming in Australia and a big reason for this is the volatility of this cryptocurrency.
Currency trading allows for maximum yield when it is volatile – lots of ups and downs. This is precisely the reason why so many Australian traders enjoy trading Bitcoin. Plenty of profitable opportunities are available when markets are volatile, which presents a lot of scope for currency traders.
The media plays a big part in the volatility of Bitcoin. Whenever a breaking story surfaces on local media, Bitcoin volatility increases and traders cash in. History has shown that Bitcoin traders and speculators routinely push this digital currency to the forefront of CFD trading..
It is increasingly being used as the preferred payment option for merchants, money transfers and trading purposes. More traders are turning to Bitcoin trading than ever before. That is why this cryptocurrency is inherently valuable. It is a high demand financial trading instrument, despite having zero association with the Australian government or any central banks around the world.
Bitcoins are mined with powerful computer hardware and software. A maximum of 21 million Bitcoin will be available, after which no further bitcoins will be produced. The algorithm which governs the production of Bitcoin limits the quantity that will be produced, and the rate at which they will be produced. It is a finite commodity – there is a fixed amount, and that ensures that greater demand will always prop up the price. In this way, it is similar to other finite commodities assets such as crude oil, silver, or gold.
Bitcoin in the news
- August 2017 – Bitcoin reaches a market capital of over $73.4 billion. This is the start of the Bitcoin Boom
- First half of 2017 – Bitcoin hits a high of $2900, and worldwide demand for digital currency soars.
- August 1, 2017 – First fork in Bitcoin was created: Bitcoin Cash
- October 24, 2017 – The second fork in Bitcoin was created: Bitcoin Gold
- October 29, 2017 – Bitcoin hits a new record high of $6,300
- November 28, 2017 – Bitcoin Reaches and unprecedented high of $11,000
- December 10, 2017 – Cboe Futures Exchange (CFE) starts offering Bitcoin futures trading
- December 17, 2017 – Bitcoin keeps climbing, almost hitting the $20,000 mark, setting its new record high
- December 18, 2017 – CME Group’s Bitcoin futures are available for trading
- December 21, 2017 – Bitcoin slumped by almost 21%. At market opening Bitcoin was at $15,561 later reaching a low of $12,504, closing with a slight recovery of $13,942
- December 23, 2017 – The cryptocurrency plummets to $11,000, before seeing its positive recovery to end the year
- December 28, 2017 – Third fork in Bitcoin created: New coin on SegWit2x chain called B2X
We are here to help you trade Bitcoin
AvaTrade offers Australian traders the opportunity to Buy (go long) or Sell (go short) on all Bitcoin trades. This service is available to you 24/7. You can use your preferred trading strategies to buy or sell Bitcoin regardless of which way the currency is moving.
We encourage you to learn more about Bitcoin trading by visiting our Trading Conditions & Charges page.
Please note: The cryptocurrencies market’s high volatility offers endless trading opportunities.
Due to price fluctuation, certain crypto pairs may be suspended and/or removed from our trading platforms periodically.
When trading with AvaTrade you are trading on the price changes of the digital coin, and not physically purchasing it.
The maximum accumulated position size for Bitcoin is $600,000 notional value, details in our Conditions and Charges page.