trading bitcoin currency is like currency trading
Not really. In retail forex you never own the quote currency, making it quite different from bitcoin trading.
Topic: is bitcoin trading like stock trading, forex, someone in middle or neither? - page 2. (Read 2647 times)
May 19, 2013, 04:51:52 PM
Not really. In retail forex you never own the quote currency, making it quite different from bitcoin trading.
May 19, 2013, 01:33:08 PM
trading bitcoin stocks (ASICminer) is like stock trading
trading bitcoin currency is like currency trading
obvi
trading bitcoin currency is like currency trading
obvi
May 19, 2013, 12:29:49 PM
Thanks Paul. Great answer. Now you mention the word "asset", it makes me think of gold. Perhaps bitcoin trading is more like trading commodities then? Or would you still say its more like stock trading than commodity trading?
I just have a hard time thinking of bitcoins as a "stock" because in the books I've read, it talks about "getting into positions" with stock picks, and then getting out again to cash to (hopefully) increase equity.
But I already view bitcoins as currency (?!?), hence my confusion as to what asset class I am attempting to trade, and what kind of books I should be reading. Perhaps its a bit of a few worlds.
I just have a hard time thinking of bitcoins as a "stock" because in the books I've read, it talks about "getting into positions" with stock picks, and then getting out again to cash to (hopefully) increase equity.
But I already view bitcoins as currency (?!?), hence my confusion as to what asset class I am attempting to trade, and what kind of books I should be reading. Perhaps its a bit of a few worlds.
I use the word 'asset' only for want of a more generic term to describe anything which you can actually own and holds value.
Getting in and getting out makes sense in bitcoin as well if you're talking about buying - makes less sense when you're talking about selling since you can't really short bitcoin in the same way you can't short apples or oranges - you'd need an inverted market to be able to do so, or a market in which you never really owned the asset in the first place, like forex.
Bitcoin is a currency, so its a little confusing that *retail* forex trading doesn't work the same way - trading forex as a bank, or large financial institution works exactly the same way as bitcoin, since banks and institutions actually end up owning the other currency they're trading with.
In a way, trading bitcoin is a huge privilege because there isn't a way joe public (that I know of) can actually trade forex in the same way and own the quote currency - joe public trading bitcoin gets the opportunity to trade like a bank would.
Cheers, Paul.
May 19, 2013, 07:25:16 AM
I'm a noob trader, and just trying to get to grips with all the concepts involved.
Can experienced traders provide some insight into how they see bitcoin trading, whether it more like stock trading or forex, it would be very interesting. If this has been discussed before, apologies.
tia
Can experienced traders provide some insight into how they see bitcoin trading, whether it more like stock trading or forex, it would be very interesting. If this has been discussed before, apologies.
tia
Bitcoin is more like stock trading than forex, simply because with bitcoin/stocks you actually end up owning the asset in question. With forex you never own the quote currency, since every buy must be closed with a sell and visa versa.
An advantage you have with bitcoin over stocks is that you get to deal directly with the exchange itself, rather than going through a broker.
Bitcoin exchanges don't bet against you or want you to lose your trades (unlike in forex) because you take on the risk when buying bitcoin, not the exchange.
Hope that helps
Cheers, Paul.
Thanks Paul. Great answer. Now you mention the word "asset", it makes me think of gold. Perhaps bitcoin trading is more like trading commodities then? Or would you still say its more like stock trading than commodity trading?
I just have a hard time thinking of bitcoins as a "stock" because in the books I've read, it talks about "getting into positions" with stock picks, and then getting out again to cash to (hopefully) increase equity.
But I already view bitcoins as currency (?!?), hence my confusion as to what asset class I am attempting to trade, and what kind of books I should be reading. Perhaps its a bit of a few worlds.
May 19, 2013, 05:41:49 AM
I'm a noob trader, and just trying to get to grips with all the concepts involved.
Can experienced traders provide some insight into how they see bitcoin trading, whether it more like stock trading or forex, it would be very interesting. If this has been discussed before, apologies.
tia
Can experienced traders provide some insight into how they see bitcoin trading, whether it more like stock trading or forex, it would be very interesting. If this has been discussed before, apologies.
tia
Bitcoin is more like stock trading than forex, simply because with bitcoin/stocks you actually end up owning the asset in question. With forex you never own the quote currency, since every buy must be closed with a sell and visa versa.
An advantage you have with bitcoin over stocks is that you get to deal directly with the exchange itself, rather than going through a broker.
Bitcoin exchanges don't bet against you or want you to lose your trades (unlike in forex) because you take on the risk when buying bitcoin, not the exchange.
Hope that helps
Cheers, Paul.
May 19, 2013, 02:04:37 AM
I'm a noob trader, and just trying to get to grips with all the concepts involved.
Can experienced traders provide some insight into how they see bitcoin trading, whether it more like stock trading or forex, it would be very interesting. If this has been discussed before, apologies.
tia
Can experienced traders provide some insight into how they see bitcoin trading, whether it more like stock trading or forex, it would be very interesting. If this has been discussed before, apologies.
tia
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