How the two are often confounded in crypto-markets
Another enticing factor about Forex trading, is that many brokers offer a higher rate of leverage than other markets some as high as , This greater leverage allows for greater amounts of return, but also greater amounts of loss, and should only be used in respect to good risk and asset management. More on that later. But first… what is a digital currency? Second , we have fiat money which is supposed to represent those assets sadly these are often devalued over time , and we see it time and time again throughout history.
Third , we have fiat money which no longer represents anything, but debt owed to whomever prints it, yet it is legal and tender to use in transactions and to be exchanged for goods and services. And within recent history we have one more form of money… Fourth … we have the advent of digital money, digital urrency, tokens, altcoins, etc.
Digitalcurrencies are created and secured on new technology called a blockchain , which has helped to spark huge inspiration and growth in the Fintech Industry. There are two types of digital currencies out there: the first of which is a digital token which is not backed by anything but the trust of the users, whereas the second is the attempt to back this new concept with physical commodities. DinarDirham for example, is doing this with our new DinarCoin, and our business model is hoping to negate the mistakes of past companies.
Now I mentioned before that Digital urrencies add a third factor of potential higher profits and losses in the Forex Market as it stands right now that is. Some forex brokerages are allowing for Bitcoins to be used for deposits, but not in a direct pairing for a trade, but rather, only for depositing or withdrawing funds. This, essentially adds a third currency to the mix that would have otherwise not been there.
As a result, this thirdly introduced currency can have unforeseen losses even if your initial trade made you profit , or even the possibility of giving you even higher profit in addition to your trading profit. More about the intricacies of that in this article. They offer an MT4 MetaTrader 4 platform through our main page, which means you can make your own detailed analysis of the market before you trade.
You can see the features they offer on the DinarDirham main page, on the products wheel area. So, is it worth partnering your valuable Bitcoins with your Forex account? That will have to be a decision each investor makes on their own. Read the resources in this articles, particularly this article explaining in detail the benefits and risks involved , and use extra caution when implementing this new strategy. If done correctly, using digital urrencies with your forex trading account can help increase your profit even more then using the maximum leverage of your broker, as an additional factor, but beware of the potential risks of doing so as well.
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Given its volatile price swings, bitcoin might not be an ideal investment for retirement. Yet an increasing number of financial services firms now offer the option of investing in the cryptocurrency through self-directed IRA accounts. In an interview earlier this year, Bitcoin IRA , one of the earliest providers in this space, claimed that it had already signed up 4, people for its service. Jay Blaskey, the digital currency specialist from BitIRA , says they first started exploring bitcoin for retirement accounts after a IRS ruling categorizing the cryptocurrency as property. The opportunity has grown in the last year. David Allen, the chief operating officer at Equity Trus t — a Cleveland-based financial services firm that recently introduced bitcoin trading facility through IRA accounts for its customers, says they introduced the service due to demand.