Leading online trading brokerage firm, BDSwiss is now allowing its clients to trade using bitcoins.
BDSwiss Introduces Bitcoin Trading, allows Krona Deposits
In an announcement last week, BDSwiss said clients trading using bitcoin would initially conduct trades against the Chinese Yuan and U.S. dollar. This means that clients would only trade on the price of the Bitcoin i.e. on whether the currency’s price will rise or fall and as such, there will be no bitcoin to bitcoin trading involved.
Bitcoin, a virtual currency, is now part of the financial market and is accepted in these circles.
BDSwiss clients will now be able to trade in the weekends so traders can take a position any time of the day throughout the week.
Trading using bitcoin is admittedly not straightforward. The value of this currency is based on dynamics of supply and demand. Notes and coins used in global financial transactions did not have any intrinsic value; the value of this currency depended on the ability of the issuing country to honor it but this changed significantly following the financial crisis in 2008/2009.
Like gold, the bitcoin currency is finite. In fact, by 2040, all available bitcoins amounting to 21 million would have been mined. However, given its infinite divisibility, there will still be a supply of bitcoins.
How do Bitcoins Work?
Bitcoin is a form of virtual currency that facilitates peer-to-peer exchanges that do not require a central authority or a middleman.
The exchanges between two people are recorded in a digital ledger as proof that the payer is the owner of the funds. The currency is stored in digital wallets with a private code that acts as proof of ownership.
Upon installing a digital bitcoin wallet in your device, which could be a laptop, tablet, smartphone or desktop, an address is created for each subsequent transaction. The address can be provided to others from whom you want to receive payment.
Users are informed about all transactions. Through a process known as mining, transactions are confirmed and added to the digital ledger (known as a blockchain). This process allows different computers to have unanimity on the functioning of the exchange network.
In other news, BDSwiss has now become the first broker to enable its clients in Scandinavian countries to make deposits and trade using their local currencies.
Clients in these countries will be able to deposit and trade in Danish Krone (DKK), Norwagian Krone (NOK) and Swedish Krona (SEK).