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Depending on the type of asset structure you want to invest in, this could be a specialized cryptocurrency exchange or a regulated CFD broker. Crucially, this depends on whether you want to trade Bitcoin on a short-term /day-trading basis or hold your investment for the long term.

For this reason, we have listed below the main ways in which you can trade bitcoin.

Trade Bitcoin through 100% ownership.

If you want to trade Bitcoin in its truest form, you must first buy the digital currency. Although we will explain in more detail how this works below, you will need to use a third-party cryptocurrency exchange that is licensed to accept fiat currency deposits.

This way, you can use a debit / credit card or wire transfer to buy Bitcoin, which you can then trade with other currencies. Once you are in possession of Bitcoin, you have two options. If you want to do day trades, you can trade it against other cryptocurrencies like Ethereum.

Note: If you own Bitcoin 100% and then want to trade it against fiat currencies like the US dollar, you will likely need to do so via a BTC / USDT pair. USDT is a cryptocurrency called Tether that is tied to the US dollar.

If you want to trade your bitcoin against the US dollar, you can also do so on your chosen cryptocurrency exchange. The second option is to withdraw your bitcoin to your private wallet for safekeeping. This option is meant for those who want to invest in bitcoin for the long term, with the hope that it will be worth significantly more in the future.

Trading Bitcoin CFDs

If you are an experienced investor who wants to access the bitcoin space on a daily basis, we strongly recommend considering CFDs (Contract-for-Difference). CFDs allow you to speculate on the future price of an asset without having to own or store it. Not only are CFDs available in the Bitcoin arena, but virtually every tradable asset class.

Whether it's stocks, gold, oil, natural gas or the S & P 500, CFDs in Exness login area allow you to trade assets at the touch of a button. Trading bitcoin through a CFD broker offers numerous advantages. Unlike third-party cryptocurrency exchanges, the CFD brokerage industry is primarily a highly regulated battleground.

In the UK, for example, all CFD brokers must hold a license with the Financial Conduct Authority. This provides you with a number of legal safeguards that would otherwise not be available in a cryptocurrency exchange. Secondly, CFD platforms support everyday payment methods such as debit / credit cards, bank transfers and even e-wallets like PayPal.

Therefore, it is not necessary to actually buy bitcoin to start trading. Instead, all you need to do is open an account, deposit money and buy a bitcoin CFD instantly. This is also beneficial when it comes to closing your trade. You don't have to worry about transferring your bitcoin profits to a digital wallet. Instead, UK CFD platforms will report balances, profits and losses in GBP.