How to Open A Bitcoin Account
This learn bitcoin guide will show traders how to set up their account so that they can start to trade bitcoin. Before opening a bitcoin trading account there are various factors that traders should consider before taking this step.
To open a cryptocurrency trading account, traders need to find an online broker and then they can setup their account with the trading broker that they choose. Once a trader opens this btcusd account the trader will then use it to place trades in the online market and the profits and losses that they make when trading will be accounted for in this trading account.
A trader will need to consider the following factors when opening a bitcoin trading account:
Regulation of Crypto Broker
Before opening a bitcoin trading account traders must first know that they should only choose to trade with a regulated cryptocurrency broker. In bitcoin trading there are hundreds of crypto brokers, some are regulated and other that are not. A trader must do due diligence when selecting a cryptocurrency trading broker and check the regulation license details of the crypto broker they want to trade with. Remember some brokers that are not regulated will write an tutorial on their bitcoin trading website about bitcoin trading regulation and link to this article - if a trader is not careful they will be tricked into thinking that the crypto broker is regulated, make sure to check the license details of the broker & you can also confirm these details with the regulatory authority regulating the online broker.
Bitcoin Leverage
Traders should consider the bitcoin trading leverage offered by the crypto broker when it comes to opening & accounts. With bitcoin trading leverage a trader controls a big amount of capital while using little of their capital. Bitcoin Leverage is one of the reasons why a bitcoin trading is very popular because traders can make a lot of profit from bitcoin trading using little of their money.
A trader should therefore consider the bitcoin trading leverage given by a broker some brokers give 100:1 & others as high as 400:1, with bitcoin trading leverage 400:1 a trader who deposits $1,000 can borrow $400 for every $1 that they have and therefore the trader using this bitcoin leverage will control $400,000 which they can use to open trade positions with.
Stop Out Level
This is where a cryptocurrency broker will close all the trades of a bitcoin trader if the traders makes losses beyond a certain level. The best brokers will implement their stop out level at 20 % and at this level there is minimum chance of a bitcoin trader’s transaction getting closed. However, there are crypto brokers who are not very straight and these online brokers will set the stop out at 100 percent% and with this level the likelihood of the trader’s transaction getting closed or stopped out are very high. A trader should make sure they open an account with a online broker setting the stop out at 20 %.
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