AvaTrade Bitcoin Trading Review

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AvaTrade’s Review Summary

AvaTrade is an established Forex broker, which has a fully equipped website. The excellent customer support, choice of trading platforms, availability of Ava debit card and complete transparency in trading are some of the biggest advantages and a 5-day withdrawal time is the only disadvantage associated with this broker. AvaTrade is the one to consider if looking for a long term, secured trading platform and a broker who offers trading with simplicity and sophistication.

Pros for Trading with AvaTrade

  • Attractive promotion and bonuses offered – can reach up to $10,00 in some cases.
  • Comprehensive educational resources – So even beginners can learn as they go along.
  • Dealing with A reputable, reliable and regulated broker and trading platform.
  • Free demo account – So you can practice before putting your money on the line.
  • Low minimum deposit of $100
  • Market analysis provided.

Pros for Trading with AvaTrade

  • 5-day withdrawal time
  • The spread can be high at certain times – the spread is the difference between the “Buy” and “Sell” price and it’s what you need to beat in order to make a profit.

99 Bitcoins’ Rating [usr=9.1]

For more information about AvaTrade’s Bitcoin trading service.

Full review of AvaTrade’s Bitcoin trading platform

Trading Bitcoins with Ava Trade is very easy. After opening an account and making your first deposit you are ready to trade Bitcoins. At Ava Trade you can deposit as low as $100 and they accept a wide range of funding methods including credit cards, debit cards, PayPal, Moneybookers (Skrill), Neteller, Webmoney and more. AvaTrade offers a leverage of 10:1 for Bitcoins, since the digital currency is considered a very volatile asset. The leverage of 10:1 works in the following way:

If the Bitcoinís market price is $1,000 and you have $1,000 in your Ava Trade account, you are able to buy or sell a contract of maximum 10 Bitcoins (the contract is worth $10,000). This way you have a purchasing power of ten times your bankroll. In a regular Bitcoin Exchange you are able to buy only one Bitcoin with $1,000, but at Ava Trade you can buy a contract for 10 Bitcoins with the same amount.

There are both advantages and disadvantages of leveraged trading. If you correctly predict the direction of the price you will make much higher profits when using leverage. The downside is that the risk is also higher. If the price moves against you, your loss is higher, and you can even lose your entire investment and be forced to close your position by a margin call. The broker reserves the right to automatically sell your contract if the loss equals the amount of money you have in your account. I recommend the use of leverage only for people who are very well aware of how these instruments work and have experience in forex or CFD trading.

If you have difficulties in understanding how leverage works or if you prefer to take smaller risks, you can still buy contracts equal in value to your bankroll. This way you don’t risk a forced sell if the value crashes and you’re able to keep your Bitcoins as long as you want.

Considering the initial example of $1,000 for one Bitcoin and the account size of $1,000 you can simply buy a contract for only one Bitcoin. This way you cannot risk to have your position closed in case the Bitcoin falls in value for a while.

Setting up Your First Trade

Setting up your first trade on AvaTrade shouldn’t be much of a task. You need to have behind your mind the simple notion that you’ll make money on the differences between the price at which you buy and selling price (also considering the fees charged on such trades).

If for instance, you begin with 1BTC purchased at $500. Let us assume that no fees are applicable here and you eventually sell at $520, this means you’re set to make a $20 profit. There’s also a better likelihood that a trader will get involved in trading fractional Bitcoins as seen in forex pairs. For example, the trader buys 1.213 BTC at $500 for $606.5 and sells at $510 for $618.63. The trader in turn is able to cash in a profit of $12.13.

Let’s look at some vivid examples from the AvaTrade Web Trading platform:

  1. The process begins with the trader signing up for an account with the broker (AvaTrade), and this will take between 2 – 3 minutes of your time.

The example cited herein was carried out via AvaTrades’ Web Trading platform, once you click on the “Start” on the “Web Trading Platform” tab, a pop-up page redirects you the live trading portal where you can start trading with ease.

avatrade signup

The image below depicts the AvaTrades’ Web Trading platform and its basic features. On the left side of the screen is the “Market Rates” window, where you’re expected to filter through your instrument of interest. You can also move from “Classic” view to “Simple” view for a more spaced out view.

avatrade console

You can set your parameters for a ‘buy’ or ‘sell’ based on your analysis. At this point it is important to take note of some key features of the AvaTrade Web Trading platform when trading the Bitcoin. Starting from the left side of the screen, you should run a check on things, select the instrument from the ‘filter’ drop box, the right side of the screen is the chart display. Although, I must say that the technical analysis tools on the Web Trading platform is quite minimal, indepth analysis should be employed on a separate charting software. The ‘Buy’ and ‘Sell’ button is quite visible and would allow you enter a position at the market price.

 buying and selling bitcoins with avatrade

Selling Bitcoins with AvaTrade

If you think the Bitcoin is going to lose value, you can sell Bitcoins without even owning them. You can simply sell the CFD contract and you will make profits from the decrease in value. This is called “short selling” in financial jargon and is often used by investment funds when the markets are falling.

Conclusion

AvaTrade is an established Forex broker, which has a fully equipped website. The excellent customer support, choice of trading platforms, availability of Ava debit card and complete transparency in trading are some of the biggest advantages and a 5-day withdrawal time is the only disadvantage associated with this broker. AvaTrade is the one to consider if looking for a long term, secured trading platform and a broker who offers trading with simplicity and sophistication.

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Ofir Beigel

Owner at 99 Coins ltd.
Blogger and owner of 99Bitcoins. I've been dealing with Bitcoin since the beginning of 2013 and it taught me a lesson in finance that I couldn't get anywhere else on the planet. I'm not a techie, I don't understand "Hashes" and "Protocols", I designed this website with people like myself in mind. My expertise is online marketing and I've dedicated a large portion of 99Bitcoins to Bitcoin marketing.

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