If you really must trade bitcoin this is how….

Featured Broker: CMC Markets - FX, CFD & Spreadbetting on 10,000 instruments, LSE Listed, Est. 1989

Let’s get this straight from the start, it’s probably best that you stay well away from actual bitcoins.  It’s just far too early stage and there are too many companies claiming to be the “ultimate bitcoin exchange” then going belly up the next week.

However, chances are you have come across this article by typing into Google “how to trade bitcoin”. That in itself is a clue that it’s probably best to stay away in the long term.

One of the biggest brokers to trade bitcoin with is: PLUS 500 (CFDs only)

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If you think there is a trade in the market though and want to speculate on bitcoin without getting too involved.  It makes more sense to trade on a derivatives product such as spread betting with someone like IG.  IG are listed on the London Stock Exchange and are worth around £2.5 Billion. They specialise in spread betting.  Spread betting allows you to speculate on the price of an asset by entering into a contract where the outcome is based on the difference between the opening and closing price of the underlying.

So, through IG or other CFD and spread betting brokers you can trade bitcoin, without ever actually owning it.  It’s risky as you are trading on margin and just putting down a fraction of the trade value.  So whilst in percentage terms you can make significant profits, you can also make huge losses quickly. Bitcoin is particularly volatile so make sure you fully understand the risks before you trade.

Sure there maybe a few places to buy and sell actual bitcoins. Coinfloor for example was founded by some fairly well established and qualified people.  They are also backed by big venture capital players like Passion Capital and some early Skype employees like Taavet Hinrikus.  But that doesn’t count for anything if the business is not run properly.

Spread betting on bitcoin is done on margin so it is possible to lose more than you hold in your account.

Although Plus 500 don’t offer spread betting you can trade bitcoin on CFDs which are pretty much the same thing except thing iwthout the tax benefits.

You can open an account online with PLUS 500 here or just playabout with the Bitcoin chart below.

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