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There are many reasons to HODL Bitcoin – most investments grow over time, Bitcoin has seen multiple rallies that caused it to surpass seemingly unbreakable levels and reach new highs, and because we believe in its ability to be the currency of the future.
JPMorgan said Bitcoin could rally as high as $146,000 in the long term as it competes with gold as an “alternative” currency – CNBC.
No matter what the reason is that you HODL, it means that your funds are tied up in Bitcoin, leaving few options for trading. The most obvious way to trade your Bitcoin is on an exchange for FIAT currencies (US Dollar, Euro, etc.); while these currencies’ prices are low and Bitcoin’s is high, this can carry significant fees. You also have to find someone to buy your Bitcoin when its value is high – something that may take time – so much time that the opportunity is lost, making the entire exercise a zero-sum game.
So how can you keep your funds in Bitcoin but still have those funds work for you? When you trade with a broker that allows deposits in Bitcoin, you can.
Make Your Bitcoin Work for You
One of the most straightforward and painless ways to work with your Bitcoin while still HODL – ing is to find a derivatives broker that accepts Bitcoin as base currency. This should allow you to trade multiple financial products (depending on the Broker’s offerings) – this can include other cryptocurrencies, shares, or even FIAT currencies.
A small clarification here though, you don’t exchange the underlying assets when trading derivatives but its price. So you are keeping your Bitcoin (unless you lose trades) while still trading with it.
Trading With Bitcoin as Your Base Currency
Brokers that accept Bitcoin as a base currency or offer a Bitcoin account should give you access to multiple markets. If you are new to trading (which you probably aren’t since you own Bitcoin), stick to more stable markets that offer a lot of news. A great “Beginners” market is FX – news outlets usually cover it, it is generally affected by published policy changes, and it is easy to understand – you buy one currency while selling the other.
Brokers that Accept Bitcoin Deposits
Surprisingly there aren’t many brokers out there that offer Bitcoin as a base currency or have a Bitcoin trading account. This is probably due to the large fluctuations Bitcoin frequently experiences. Keeping Bitcoin and not exchanging it to FIAT currencies mitigates this risk – so in essence, these brokers HODL too.
Standout Broker – Best Benefits, Conditions, and Lowest Cost
If you’re researching what the market offers and brokers that accept Bitcoin, easyMarkets seems to pop up again and again. It’s been around since 2001, they seem to offer low fixed spreads which means their fees are transparent; they give you access to multiple markets, including global shares, other cryptocurrencies, currencies, and more. According to the broker, their list of tradable instruments includes over 200.
Of course, and most relevant to our conversation – they recently launched their easyMarkets μBTC account, which allows their clients to deposit Bitcoin, trade, and withdraw in Bitcoin without the need of an exchange. If you would like to learn more, visit their site here.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.