Benefits and Risks of Trading Forex with Bitcoin

Should you trade Forex with Bitcoins? To make the right decision you must weigh its pros and cons. The Forex market is the biggest liquid market and this is open 24×7. With cryptocurrencies getting launched, currency trading has become more fascinating.

In fact, many Forex brokers in recent times have started accepting Bitcoins for their currency trading and some have even started accepting other digital currencies. The idea is to make profit because of fluctuations in one currency’s value against the other. Majority of Forex trades are done in a decentralized manner but the currencies involved are supported by central banks issuing them. So, these banks are responsible for stabilizing their values. But this bank support is not there for Bitcoins and other digital coins.


  • The biggest advantage is that Bitcoins are not attached to any bank; so all digital currencies like it are free from macroeconomic problems like inflation or interest.
  • To conduct Forex trade with Bitcoins you do not need a huge amount to get started. All you have to ensure is that the broker in question is legitimate and regulated. Check this out to know how you can trade bitcoin using automated trading bots.
  • Many Forex brokers provide leverage for those trading Bitcoins and if you are experienced, you can take advantage of this. But high profit margins must be approached cautiously because these also imply huge potential for losses.
  • Forex brokers accepting cryptocurrencies keep brokerage costs quite low to lure new clients.
  • Bitcoins can be sent across borders without any difficulty; so, no matter where you are based, you can conduct Forex trades with Bitcoins easily.
  • Finally, you will never have to disclose your credit card details or bank account details for making Bitcoin transactions.


  • Since Bitcoin trades take place on multiple exchanges, the exchange rate can be different; so, traders have to know which rates the brokers will use.
  • Bitcoin prices are known for being notoriously volatile and when these are not regulated, unregulated brokers can take advantage of this and put traders at a disadvantage.
  • Most brokers will sell Bitcoins right away when they receive Bitcoin deposits from their clients and they hold this in US dollars. Even if this does not happen instantly he still remains exposed to Bitcoin-to-USD rate risks.
  • When Bitcoins get deposited thefts are possible through hacking; so to mitigate such risks, it is best to find brokers who enjoy insurance protection.
  • New traders may not know the art of using leverage because they cannot understand the exposure and this can be a problem.
  • Crypto coins belong to a distinct class and they have their own system of valuation. When you trade Forex with Bitcoins you introduce a new intermediate currency that can influence profits and losses in unprecedented ways.

While Bitcoins have been steadily gaining popularity over the years, risks of Forex trading with Bitcoins cannot be disregarded. In Forex trades, handling decentralized currencies that facilitate global transactions without fees can be a huge advantage. But, at the same time, you must add a third currency now to what was originally a trading pair.

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