Is Bitcoin trading the new Forex?

Winner’s Edge Trading is a group of Forex traders ‘dedicated to triumph over challenging markets’. Founded in 2009 by Mr. Casey Stubbs, the company’s creation was the end result of his passion for educating others. In a thought leadership piece on their blog, they examined the effect of Bitcoin, on traders dealing in Forex. Bitcoin has had quite a turbulent month, first there was the Thailand ban, then a U.S. federal judge in Texas has ruled that Bitcoin is a currency and should therefore be regulated just like U.S. dollars or gold.  In addition, one talking point, at the recently concluded Inside Bitcoins conference in NYC, was that there appears to be few Bitcoin startups with extensive payments experience and operational expertise, which has a knock-on effect on trust and compliance. 

Media outlets are also reporting exchanges such as Coinbase will demand proof of ID from buyers or sellers of Bitcoin when they trade  higher volumes.

Although relatively new, Bitcoin Trading has many advantages over Forex, yet is similar enough to Forex that currency traders can easily learn to trade it.  Winner’s Edge Trading’s Casey Stubbs remarked that the “Introduction of this digital currency as a substitute trading tender will offer unique opportunities, as well as challenges, for those taking part in the Forex.” With current economic times being as uncertain as they are, currencies are fluctuating greatly every day. For some in the Foreign Exchange market, this constant ebb and flow is good, but for many others it makes for difficult work. With the emergence of the new ‘Bitcoin’ currency, Forex trading might just have become a little easier.

With current economic times being as uncertain as they are, currencies are fluctuating greatly every day. For some in the Foreign Exchange market, this constant ebb and flow is good, but for many others it makes for difficult work. With the emergence of the new ‘Bitcoin’ currency, Forex trading might just have become a little easier.

The development of the new digital tender called ‘Bitcoin’ started back in 2008 and has made major inroads into the retail trading market, particularly because its price is driven mostly by demand and that large institutions have yet to trade it. Mr. Stubbs says that the pricing, being set by demand, “makes Bitcoin behave like a commodity in numerous ways and paves way for success with new trading strategies.”

The company’s founding director goes on to say that Bitcoin “beats other currencies in Forex trading due to a number of reasons.” Mr. Stubbs then lists three of those reasons as being “the pricing is dictated by demand, the market consists mainly of retail traders and that Bitcoin feels very familiar to Forex traders – even if they haven’t traded it before.”

Furthermore, Mr. Stubbs realistically mentions the budding currency “will have its obstacles, but will become a unique and captivating trading currency in the foreseeable future.” He also says, the likelihood that the new digital tender will become a mainstay in the currency market is “a pretty sure thing, especially once Forex traders see how easy it is to integrate it into the trading strategies they already know.” He adds that, although not fully tested, his Winner’s Edge Trading strategies should also work with Bitcoin trading.

The article sparked debate as to the suitibility of Bitcoin being traded in the markets. Dave Hanna replied:

“Just my opinion, but I don’t think this should be taken seriously as a trading medium. For one, it is much to volatile. The exchange rate to the US Dollar has risen and fallen by as much as 100% in just a few weeks. Secondly, the government has in the past swooped in and frozen all assets of people dealing in similar pseudo-currencies (anyone remember e-gold in around 2006-2007?) causing people to lose a LOT of money with no recourse.”

Mr. Stubbs asserts however that the newly innovative digital tender will become known eventually as the ‘new’ Forex. He assesses the positive and negative aspects of Bitcoin trading and urges Forex traders to look into the emerging market. Mr. Stubbs makes a final remark, “Certain opportunities, that are ripe for the picking now, are going to diminish over time as more traders enter the market, so it’s vital to take advantage of Bitcoin trading right away.”

You can Click here to read Mr. Stubbs’s full report on the Bitcoin currency, and see if you agree.

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