Bitcoin Trading Platform

Bitcoin Trading Platform | Bitcoin CFD Trading

Bitcoin Trading Platform Comparison Table
Online BrokerBitcoin CFD Trading Platforms
Web Trader & Apps
MT4, ETX TraderPro
MT4, MT5, R Trader
MT4, Web Trader & Apps
MT5
MT4, MT5, cTrader
MT4
Web Trader & Apps
Web Trader, Advantage Web & Apps, AT Pro
MT4
JForex
MT4, ZTP
Advanced Platform, Web Trader
MT4, Trade Interceptor
MT4, cTrader, MT5
MT4
MT4
MT4

Bitcoin Trading Platform for CFD Trading - How to Understand Bitcoin

These brokers offer Bitcoin CFD trading and provide trading platforms to trade Bitcoin CFDs. But what is Bitcoin ?

What is Bitcoin ?

Bitcoin is a network used to send payments across the Internet. The cryptocurrency used to send payments is called Bitcoin. Bitcoin is traded on exchanges and has the symbol BTC.

What is a Bitcoin CFD ?

A CFD is a Contract for Difference. This is a contract between the trader and the CFD provider to exchange the difference in price of the CFD from the start to the end of the trade. The price of the CFD is closely based on the price of an underlying financial market. Thus it allows the trader to trade a market (i.e. to speculate on its price movement) without having to own it. Bitcoin as a physical asset is stored, typically in a wallet. A CFD enables the trader to trade without needing a wallet or other means to store it. Bitcoin leverage trading is also possible.

What is the blockchain ?

When Bitcoin is sent from wallet to wallet to make a payment, this process is recorded on a distributed electronic ledger called the blockchain.

What is mining ?

When a payment is made it needs to be processed and added to the ledger. Miners compete to add new blocks of processed data to the blockchain. When they successfully do so, they receive a reward in the form of Bitcoin and any transaction fees. This is how Bitcoin is created.

What are possible advantages of Bitcoin ?

Bitcoin uses cryptography to secure its ledger. This ledger is also public. A secure public ledger aims to solve an issue with centralised ledgers, that it can be changed. Cryptography helps ensure that the ledger cannot be changed.

What are disadvantages of Bitcoin ?

One disadvantage is that a centralised payment processing system, which Bitcoin is not, can be very efficient and can scale up to handle increased transaction processing.

Bitcoin is distributed and to an extent operates as autonomous units, and such a system has problems when scaling. A number of different cryptocurrrencies have been created to try and solve this problem, and Bitcoin itself has been working on solutions.

Bitcoin vs other cryptocurrencies

Bitcoin is a network operating on the Internet used to send payments in a cryptocurrency, with its transactions recorded on a distributed electronic ledger and using cryptography to secure this ledger. In this respect it is like other cryptocurrencies. However there are differences with other cryptocurrencies.

Typically cryptocurrencies use a type of distributed electronic ledger called the blockchain. However it is possible to have a different kind of electronic ledger.

To process payments Bitcoin uses miners. However some other cryptocurrencies process payments in different ways, though using miners is common practice, as it allows for distributed transaction processing.

Bitcoin sets a limit on the total number of cryptocurrencies which can be created by mining and this is common practice, though some other cryptocurrencies do not.

Some of the cryptocurrencies which have directly branched or forked from Bitcoin's blockchain have made changes to the rules governing the operation of the blockchain to try and speed up transaction processing.