Over the past few years, Bitcoin (BTC) has been a popular speculative investment among those seeking to profit from alternative assets and a potential hedge against global uncertainty and weakening in fiat currencies.
Bitcoin is a form of digital currency that is pegged to the value of the US dollar in the same way as foreign exchange rates are (forex). Contrary to gold, however, there is no tangible item on which to base the value of ether.
When it comes to market cap, popularity, and volume of trading, Bitcoin is still king.
After its introduction in 2009, the value of this digital asset has experienced spectacular price swings over the past several years, attracting the attention of day traders who are adapting forex trading tactics to the asset.
Bitcoin and other cryptocurrencies can be traded on a variety of online trading platforms and exchanges; however, investors should exercise caution with respect to trading expenses, platform security, and reputation/trust before making any significant investments.
Forex trading with Bitcoin: Beginners Guide (2025):
- ☑️ Understanding Bitcoin
- ☑️ Understanding Bitcoin
- ☑️ The difference between Forex and Bitcoin
- ☑️ How to trade Forex with Bitcoin
- ☑️ The difference between Forex and Bitcoin
- ☑️ How to trade Forex with Bitcoin
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Understanding Bitcoin
After the highly publicized hack of the Japanese exchange Mt. Gox and the broad acceptance of bitcoin in payment processing at major U.S. shops, the argument over whether bitcoin should be regarded as legal tender has remained ongoing.
Bitcoin is not recognized as a currency by all market participants, authorities, or government officials in the same way that the U.S. dollar, the Chinese yuan, or the euro area
Over the past few years, Bitcoin (BTC) has been a popular speculative investment among those seeking to profit from alternative assets and a potential hedge against global uncertainty and weakening in fiat currencies.
Bitcoin is a form of digital currency that is pegged to the value of the US dollar in the same way as foreign exchange rates are (forex). Contrary to gold, however, there is no tangible item on which to base the value of ether.
When it comes to market cap, popularity, and volume of trading, Bitcoin is still king.
After its introduction in 2009, the value of this digital asset has experienced spectacular price swings over the past several years, attracting the attention of day traders who are adapting forex trading tactics to the asset.
Bitcoin and other cryptocurrencies can be traded on a variety of online trading platforms and exchanges; however, investors should exercise caution with respect to trading expenses, platform security, and reputation/trust before making any significant investments.
Understanding Bitcoin
After the highly publicized hack of the Japanese exchange Mt. Gox and the broad acceptance of bitcoin in payment processing at major U.S. shops, the argument over whether bitcoin should be regarded as legal tender has remained ongoing.
Bitcoin is not recognized as a currency by all market participants, authorities, or government officials in the same way that the U.S. dollar, the Chinese yuan, or the euro are.
Bitcoin trading has grown to become a multibillion-dollar industry wherein users may purchase and sell cryptocurrency on numerous exchanges. Several FX brokers advertise that they accept bitcoin trading among their available services.
But before investing, there are a few facts concerning bitcoin trading and forex trading that should be known.
The difference between Forex and Bitcoin
Trading foreign exchange and bitcoin are two distinct markets with some key distinctions. To put it simply, the worldwide supply and demand for either paper or digital currencies determine their respective prices.
When there is more demand for bitcoin, the price goes up. Drops in demand are reflected in lower prices.
Bitcoin, on the other hand, is immune to the supply uncertainty induced by governments around the world.
Bitcoins are mined at a consistent rate, but the value of other currencies can be dramatically affected by unexpected changes in monetary policy, such as the Swiss National Bank’s decision to decouple the franc from the euro in 2015.
While currency exchange rates are determined by the economic decisions and situations of particular nations, Bitcoin’s value is tied to the foundations of the cryptocurrency ecosystem.
The way in which people transfer money is another problem. In addition to the direct exchange of one currency for another, currency traders can increase their leverage by using derivatives and other paper contracts created to increase profits.
Contracts that will increase leverage in the bitcoin industry are in their infancy, but some brokers are beginning to underwrite them. Trading in bitcoins is more akin to owning a share of stock on the New York Stock Exchange.
There is a major distinction between Bitcoin and Forex in terms of liquidity. The global foreign exchange market is about $6 trillion, but the bitcoin market is just in the billions.
Bitcoin’s smaller market is more susceptible to a turbulent trading atmosphere, where the price might fluctuate significantly in response to relatively minor macroeconomic developments.
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How to trade Forex with Bitcoin
A number of FX brokers advertise the ability to fund, withdraw from, and trade on an account using bitcoin. Since contracts for difference (CFDs) are illegal in the United States, the functionality of these brokers may have legal ramifications for investors there.
Additionally, the Financial Conduct Authority (FCA), the financial regulator of the United Kingdom, has issued warnings about these types of platforms to investors.
It is unclear what other forex brokers are doing beyond allowing consumers to purchase and sell bitcoin through current bitcoin exchanges, despite their claims that they can incorporate bitcoin trading into their platforms.
For the time being, investors are better off dealing with bitcoin-based exchanges that trade in their own national currencies rather than FX platforms that don’t yet offer as many options for bitcoin trading.
The trading market is more familiar to these businesses, as are the security standards, and they will likely incur lower trading costs with each transaction. These markets claim they have strengthened their models with additional safety measures since the demise of Mt. Gox. The San Francisco-based Bitcoin exchange Coinbase, for instance, has expanded to over a hundred different nations.
The difference between Forex and Bitcoin
Trading foreign exchange and bitcoin are two distinct markets with some key distinctions. To put it simply, the worldwide supply and demand for either paper or digital currencies determines their respective prices.
When there is more demand for bitcoin, the price goes up. Drops in demand are reflected in lower prices.
Bitcoin, on the other hand, is immune to the supply uncertainty induced by governments around the world.
Bitcoins are mined at a consistent rate, but the value of other currencies can be dramatically affected by unexpected changes in monetary policy, such as the Swiss National Bank’s decision to decouple the franc from the euro in 2015.
While currency exchange rates are determined by the economic decisions and situations of particular nations, Bitcoin’s value is tied to the foundations of the cryptocurrency ecosystem.
The way in which people transfer money is another problem. In addition to the direct exchange of one currency for another, currency traders can increase their leverage by using derivatives and other paper contracts created to increase profits.
Contracts that will increase leverage in the bitcoin industry are in their infancy, but some brokers are beginning to underwrite them. Trading in bitcoins is more akin to owning a share of stock on the New York Stock Exchange.
There is a major distinction between Bitcoin and Forex in terms of liquidity. The global foreign exchange market is about $6 trillion, but the bitcoin market is just in the billions.
Bitcoin’s smaller market is more susceptible to a turbulent trading atmosphere, where the price might fluctuate significantly in response to relatively minor macroeconomic developments.
How to trade Forex with Bitcoin
A number of FX brokers advertise the ability to fund, withdraw from, and trade on an account using bitcoin. Since contracts for difference (CFDs) are illegal in the United States, the functionality of these brokers may have legal ramifications for investors there.
Additionally, the Financial Conduct Authority (FCA), the financial regulator of the United Kingdom, has issued warnings about these types of platforms to investors.
It is unclear what other forex brokers are doing beyond allowing consumers to purchase and sell bitcoin through current bitcoin exchanges, despite their claims that they can incorporate bitcoin trading into their platforms.
For the time being, investors are better off dealing with bitcoin-based exchanges that trade in their own national currencies rather than FX platforms that don’t yet offer as many options for bitcoin trading.
The trading market is more familiar to these businesses, as are the security standards, and they will likely incur lower trading costs with each transaction. These markets claim they have strengthened their models with additional safety measures since the demise of Mt. Gox. The San Francisco-based Bitcoin exchange Coinbase, for instance, has expanded to over a hundred different nations.
Conclusion
As Bitcoin gains traction as a viable investment option, FX brokers are taking notice. Some consider bitcoin to be a conventional currency, especially given that its value fluctuates not in response to changes in national macroeconomics but rather to those in the underlying platform and the global economy at large.
Though there are many parallels between forex trading and bitcoin trading, using a forex broker to engage in bitcoin trading is not necessary and may even be more expensive than using a more standard bitcoin platform like Coinbase due to the latter’s lower fee structure.
Bitcoin and other cryptocurrency investors should weigh the benefits and drawbacks of their investments before making any hasty decisions.
As Bitcoin gains traction as a viable investment option, FX brokers are taking notice. Some consider bitcoin to be a conventional currency, especially given that its value fluctuates not in response to changes in national macroeconomics but rather to those in the underlying platform and the global economy at large.
Though there are many parallels between forex trading and bitcoin trading, using a forex broker to engage in bitcoin trading is not necessary and may even be more expensive than using a more standard bitcoin platform like Coinbase due to the latter’s lower fee structure.
Bitcoin trading has grown to become a multibillion-dollar industry wherein users may purchase and sell cryptocurrency on numerous exchanges. Several FX brokers advertise that they accept bitcoin trading among their available services.
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