How to get on the Bitcoin Express train?
Since it was launched, Bitcoin has remained to be the best performing cryptocurrency of all times. Currently, a single bitcoin coin is going for over $39,000, which is way above all the other cryptocurrency coins, after it unleashed a monster bullish rally towards the end of 2020. But how do you get on the Bitcoin express train? How do you get to be part of this best performing cryptocurrency?
There are different ways of benefiting from the current Bitcoin rally, which includes:
- Bitcoin Spot trading
Bitcoin Spot trading involves buying and selling actual bitcoins through cryptocurrency Exchanges.
Bitcoin spot trading, therefore, means you buy actual bitcoins at its current market price speculating that its price will rise further, and if your speculation is correct, you earn a profit if the Bitcoin’s value appreciates and you decide to sell the Bitcoins you had purchased.
In Hong Kong, people buy Bitcoins through:
- Bitcoin ATMs
- Bitcoin Exchanges
- Accepting Bitcoin as payment
Let us take for example you decided to buy 0.01 bitcoins (0.01BTC) at the current market price of $39,641.54. It would cost you $396.4154. If the value of Bitcoin rises to $50,000 for example, the value of the Bitcoins in your custody would have appreciated to 0.1BTC x $50,000 ($500). Therefore, if you decided to sell all the bitcoins, you would make a profit of $103.5846.
If you are in Hong Kong, there are several exchanges where you can do spot trading and they include:
- Bitcoin CFDs trading
Bitcoin Contract for Difference (CFD) contracts are derivative products that allow you to trade the exchange price/rate difference of a currency pair where Bitcoin is one of the currencies. The pair can involve a fiat currency and Bitcoin or a cryptocurrency and Bitcoin.
You don’t have to purchase actual Bitcoins to participate in Bitcoin CFDs trading. You only have to register with a crypto exchange that allows CFDs crypto trading and deposit funds in form of one of the base currencies that they accept.
Examples of the most traded Bitcoin pairs include UD Dollar/Bitcoin (USDBTC) and Ethereum/Bitcoin (ETHBTC). However, there are very many other pairs and it depends on the pairs that the exchange you choose to use has listed.
Examples of crypto exchanges where you can trade Bitcoin CFDs from Hong Kong include;
- PRIME XBT
3. Bitcoin futures trading
Bitcoin futures are other Bitcoin derivatives that you can trade to get on the Bitcoin Express Train and benefit from the current Bitcoin rally.
Bitcoin futures are contracts to buy or sell Bitcoins at a predetermined time in the future at a predetermined price. There are no requirements for purchasing the actual bitcoins when trading Bitcoin futures since you will be trading the price difference rather than the actual bitcoins.
Several crypto exchanges offer Bitcoin futures trading and you can register with them to start Bitcoin futures trading. Below are some of the best Bitcoin futures exchanges that allow you to trade in Hong Kong: