I've noticed a bunch of newbies jumping into Bitcoin on those sketchy exchanges like MtGox and Tradehill. Seriously, why not just trade some legit forex? You can kick things off with a micro account for as little as $25. The security is way better than those dodgy exchanges. Plus, you get actual customer support from a real business that won’t just vanish on you, leaving you with nothing but a sad email to send. The trading platforms are proper too, with trustworthy data, none of that low-budget nonsense. And there's tons of liquidity, making your trades way smoother. Not to mention, you don't have to stress about whether what you're doing is legal or not! Trading is tough enough without adding all these extra headaches. So, for all you Bitcoin fans out there... what’s the deal? Why stick with these unsafe crypto markets instead of going for reliable forex?
I guess my perception is that I hold Forex with a large degree of caution. I'm guessing that were I trading in forex I would likely be cleaned out by now.....at least this way I got lots of trades for little cost and get to use this market as a means to learn before tackling other markets.
Also, it means being involved in the exciting project that is Bitcoin along with options to spend and partake in a new and developing economy online. Also, the term geek cash would apply as I'm a technologist by nature and any chance to experience new realities presented by technological advances is something that I love with a passion.
Also.....it's cyberpunk as hell and that's fucking awesome in my book!
With bitcoin you get volatility to make daytrading attractive and no shady central bank rigging the prices. Forex trading is simply a game of chance, reading the brain of central banks (and the volatility is crap).
There's plenty of volatility in FX, but it's tradeable volatility. Bitcoin has blow out your account in one trade volitility; that's why it blows my mind that people feel like it's a good place to learn. It's not a true trading market; that amount of volitility makes it a casino. It's probably the worst place you could possibly learn.
Also, lol at central banks rigging prices. It's a multi-trillion dollar market, they have to play it just like everyone else and they have the disadvantage of being big and slow. You'd rather take your chances with a market so small that one guy with a moderate sized bank account can control it?
i don't do trading in traditional forex or bitcoin but my impression would be if you are trading in traditional forex you would be competing with many many big players with a lot more information/advantages than you would likely have.
the under-development of bitcoin and the perception of lack of sophistication in general of most of the traders would perhaps be attractive to would be traders as they may reckon themselves to be better traders than the majority and thus able to trade successfully.
sorry to inform you but the gains far outdo the risks for a smart trader, with thousands of stupid traders it makes it insanely easy to predict the price within a few hours to 2 days(the weekend drop).
I've noticed this myself and it's been very tempting, but I just can't trust these exchanges. Any amount of money worth making isn't an amount I want to deposit with some random guy in Japan that gives me nothing but an email address for contact info.
This has been a nice little online course in trading for me, and I was willing to put up a relatively small number of dollars and earn a very small number of dollars in return. Also as others have pointed out, it's filled with inexperienced traders like myself who don't have experience in the market so I don't feel like I'm in shark infested waters trading back and forth on the exchange. I also don't like the rigged system controlled by bankers with inside information, it's much more of a fair ballgame in that sense for newbies like myself.
Not in Australia.
If you want to trade the SFE (Sydney Futures Exchange), you will need a minimum of $7000 deposit and then they sting you $50 each way.
Bitcoin has the potential to be THE commodity of choice for learner traders.
Security is overrated when exchanges can change margin requirements at will. i.e Silver at CME
Coming from a position having of closed my account with Interactive Brokers (who are great, if you're looking for a proper trading account) back in March... Bitcoin is a HELL of a lot easier to learn on. Sure, the volatility is insane, but you're not trading against people with unspeakably more resources than you, or risking nearly as much. Minimum trade was $25k, and typically you wanted to be trading $100k at a time to keep commission low. That's all done on margin, of course, so you're actually trading 50 times as much money as you have as a deposit.
Yes, you can get Forex mini accounts, they're all with market makers where the price you trade is determined by the person holding your money. Even with the few really reputable companies, that's just not a good situation to be in.
forex has margin calls, bitcoin does not
most 'cheap' forex markets and are unregulated and are just simulated games, your not actually trading on the open market.
^Bitcoin doesn't have margin calls because you aren't trading on margin.
That's the EXACT same position you're in with Bitcoin trading, which was the point I was making. At least with a FX bucket shop you've got the law and regulatory agencies on your side, not to mention the fact that you're trading with a real business and not some dude with a server in his mom's garage.
While I'm nervous about the fact that trading on Mt Gox means giving them my USD/BTC, I thought trades were direct against other traders, and they charged commission, rather than trades being with Mt Gox themselves?
Who said MtGox doesn't trade against people? There's no regulation, remember? No laws against conflict of interest, nothing like that. Your data provider, broker, exchange, and opposing trader are ALL the same person (like literally one or two guys, not just a business entity) in Bitcoin land. But yet people think regular FX is too rigged and risky?
There are methods to build trust between parties.
Because Mt Gox is only made of a few, we can know who they are relatively easily. They are not anonymous.
Yes they could still screw us quite easily, but you can avoid disaster if you follow a few rules -
Don't put all you eggs in one basket (Don't trade only BTC, use several exchanges ?)Building trust progressively is your best bet
Which brings me to the point of the OP, people quite possibly are trading both, and there are many reasons why one would trade BTC.
I don't see at all why its so mind-blowing, you don't necessarily have to invest your life savings?
Finally, you can't have expectations of entrepreneurs in a new market to have bureaucratic certifications and be following non-existent regulations.
How do you propose an exchange should be set up for the Bitcoin market?