Bitcoin Exchanges Follow Forex Format... But No Funky Loans Compare http://www.bitlanders.com/blogs/forex-trading-a-complete-guidance-of-basics-for-beginners/3538033

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There has been an invasion of forex spamming by a number of members.

Most of these have been scammy or superficial, but I attached, for comparisons sake, the link for one which is half way decent.

These posts seem to be making the argument that Forex trading presents a way of making a living for poor people.  However, a poor person should not be engaging in such a high capital risk activity.  

Bitcoin exchanges have a similar format to that described in the reference materials.  Moreover, Bitcoins exchanges are themselves inherently unstable, so they should not be used  to store capital.  Given compliance with this amount caution, exchanges are much safer than Forex which, admittedly, has an safer underlying platform. 

That is because Forex is selling loans collateralized against margin reserves... your money... all of which you will lose if the trade goes sideways...  Forex long and short sales, if performed on borrowed money, go beyond the risk of mere speculation, and cross the line into gambling.  You might win here or there... but as you increase your number of transactions, you likely will lose your money.

How are Bitcoin exchanges different?  Bitcoin exchanges do not actually lend you money... you trade only with the capital you bring to the table... if the price of your investment goes down, you lose only the difference between the purchase price and the sale price.... for a so called Forex leveraged trade... you lose the entire capital investment.  Sure you could limit your trades on Forex to fully collateralized purchases... but Forex is going to work on you... they are trying to sell you loans.

It is possible with some acumen to make money on Bitcoin exchanges by observation of weekly,and daily, cycles between Bitcoin and alternate currencies.  However, if your try to use this as a method for making money... the transaction fees will trim you "speculation profits" to regular size.  No point and buying and selling for the same profit as holding.  So, the idea on the Bitcoin exchanges... is to buy alternate currencies you think will rise in price... relative to Bitcoin.  It is possible to measure the risk inherent to the various cryptocurrencies... and buy only low risk alternatives.  However, the point is... that you are predicting, not for a couple hours or weeks, but for the 1-5 year time frame.  If you don't think the currency will at least maintain its ratio with Bitcoin over your selected time period... you would stick with Bitcoin.  If you are doing that... don't store your Bitcoin in any exchange... find a safer place.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



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