Today, the virtual trading and currency exchange market is witness to a variety of payment options which are taking the world by storm, and at the same time helping a lot of merchants, forex brokers and traders increase their profit margins by many folds. So, we’re going to shed some light into the different payment methods available with brokers who trade or pay with cryptocurrency, while doing forex trading.
Top-Rated Crypto Payment Gateways
- Coinbase Commerce
- Coinify
- CoinGate
- CoinsPaid
- BitPay
- GoCoin
- UniPayment
- Paymium
- Coinomi
- Cryptopay, and many more.
The Advantages – Secure and Lightning Fast Payment
When you’re trading on a reliable platform and via a popular cryptocurrency payment processor, you must ensure that the said gateway supports multiple cryptocurrencies, providing a wide variety of options. It must offer 100% secure transactions, unparalleled user-interface, convenience and real-time insights, ensuring you stay ahead in the competition. So, you need to choose a platform wisely that offers 24/7 technical support, along with a dedicated account manager for every broker. Sounds interesting, isn’t it?
Best Payment Option(s) in Forex Trading
Let’s straightaway dive into this topic, understanding the most popular forex trading payment option(s) that support brokers in their endeavor of earning bigger profit margins through a seamless trading procedure.
Bitcoin – This particular virtual currency is not subject to uncertainty in supply, as created by central banks. The value of Bitcoin is linked to the fundamentals of the overall cryptocurrency ecosystem. Whereas, in the world of foreign exchange, it is related to the economic pulse of the world, inflation, oil prices, and also the state of the economy of a particular nation or country.
Trading with Bitcoin is similar to trading with anything else on the exchange. Though it is a virtual currency, it is not as dynamic as any other trading currencies or fiat currencies like the ever popular US Dollar, Euro or the Pound Sterling. If you go by the facts, as provided by several forex brokers worldwide, one can deposit, withdraw and trade with Bitcoin, while buying or selling forex. Today, a lot of forex brokers accept Bitcoin and other cryptocurrencies. The main advantage of trading with Bitcoin is the level of anonymity and decentralized valuation it offers to forex traders and brokers alike. Well,
If you assume the current Bitcoin rate to US Dollar, it stands at $7500 for 1 Bitcoin, which means for 2 Bitcoin, you get paid $15,000. And, if the exchange rate of USD with GBP is £0.5 = $1, you again receive $7500. So, after some time when the USD/GBP rate changes to 0.45, you get to earn $1666.65, which is a handsome profit of 11% flat.
How to Use Crypto Payments in Forex Trading?
For Deposit:
- First, you need to open an account with your personal broker that provides crypto payment options. For this, you need to furnish your personal information and other details, thus verifying your identity and fully complying with the KYC (Know Your Customer) procedures.
- You need to set up an account, and then proceed to the ‘deposit section’ of the website or platform provided by the broker.
- Then, search for options where you can deposit your money or fund, by using cryptocurrencies.
- You are given a wallet address through or to which you can send your crypto amount.
- As a user, you can select the type of cryptocurrency that you wish to make a deposit. In the US, Canada, Middle East and Europe, a majority of forex brokers and traders accept popular crypto currencies like Bitcoin, Ethereum Pay (ETH), Litecoin, and more.
- As a trader, you need to ensure that you have sufficient funds in your crypto wallet, in order to fully cover the desired deposit amount.
- You need to initiate a particular cryptocurrency transfer from your personalized crypto wallet to the given wallet or address of the FOREX broker. Before sending, thoroughly check the destination address and read the instructions carefully, to avoid any errors.
- Once the deposit of your cryptocurrency payment is confirmed and the funds are reflected in your exchange or trading account, you can begin trading forex pairs, as provided by your broker.
For Withdrawal:
- You need to precisely specify the amount that you intend to withdraw.
- Also, you need to confirm the destination crypto wallet address.
- Thereafter, confirm the request of withdrawal.
- The said forex broker will go ahead processing your withdrawal, and you’re good to receive the cryptocurrency payment in your crypto wallet.
Some Forex Brokers that Allow Bitcoin Deposit
- InstaForex
- Exness
- Grand Capital
- Octa FX
- FXTM
- Think Markets
- LiteFinance
- FBS
Advantages of Bitcoin Payment
As Bitcoin is a Blockchain-based technology, it stores or dumps all transactions in the form of blocks, and then converts them into chains. The Blockchain technology enables Bitcoin to operate with the support or backing of a central authority, thus helping forex traders to perform their transactions from peer-to-peer, without having to store the data in a third-party database. In this way, all transactions performed through Bitcoin are fast, easy, secure and cost-effective. It is also highly efficient compared to other transaction and payment methods. Most importantly, with Bitcoin, you can carry out a transaction at any time of the day or night. And since there’s no third-party involvement, the identity of the user is safe, especially from theft, data leak, espionage or sabotage.
Crypto Payment Fees for Forex Brokers
If your forex broker allows you to convert your cryptocurrency into fiat money like USD, GBP or EUR, it might charge a conversion fee. Here, the said fee is charged for the conversion of the crypto into a specific fiat currency. FYI, the conversion rate or fee from Bitcon to USD is 1 BTC = $25,758.05. This figure is highly dynamic in nature, and bound to fluctuate or change in the course of transaction.
For example, when you receive or send cryptocurrencies, you may have to pay Blockchain network fees, which is mandatory in case of some brokers. It is the fees paid to data miners and validators that help process and verify all your personal information related to the said transaction. The amount of fees varies, depending on the congestion of the network and the type of cryptocurrency used.
Final Thoughts
With the evolution of Bitcoin and other cryptocurrencies in the foreign exchange trading market, they act as some of the most effective instruments and payment options for all forex traders. Now, depositing or withdrawing money in the form of BTC can give you an upper hand vis-a-vis your competitors. It also promises lightning fast and cost-effective transactions, with a heightened level of security and safety protocols in-place, thus ensuring full protection of your identity. This is why a majority of forex traders are now trading via Bitcoin, enjoying that seamless virtual trading experience.
