When Bitcoin jumped above the USD 20,000 mark at the end of 2017, there seemed to be no stopping it. Investors and analysts were sure that the coin could also make the $100,000 mark. In the meantime, traders have had to be taught a lesson. Bitcoin experienced a tangible crash in 2018. But: The crypto currency has recovered and is now trading in a solid price range. What is the next step? Experts still expect Bitcoin to recover in the foreseeable future. Certainly only one reason why the demand for BTC is still high. There is no other explanation for prices of more than USD 7,000 or USD 8,000.
Correspondingly the interest in trading the crypto currencies. In practice, nothing works without the trading account at a crypto exchange and the crypto wallet. Or perhaps it does? In our research on trading on Bitcoin, we came across Bitcoin Profit. The platform advertises high profits. It almost seems as if millions of euros could be earned within a very short time by registering on the platform. Such statements make people skeptical. On the other hand, we are curious and want to find out if the site is a serious business or if it is simply about Bitcoin Profit fraud.
>> Register at the Official Bitcoin Profit website
Why trade with Bitcoin Profit?
This question arises almost automatically. Why, if I already have a trading account with a broker in Germany, open an additional account. The reason is quite simple: Bitcoin cannot be traded with conventional brokers. The reason lies in the fact that Bitcoin and all other crypto currencies are not approved as official means of payment. For this reason there is also no trading via the “classic” currency exchanges.
Coins can only be traded on special crypto exchanges. These have developed rapidly in recent years – and now offer trading on a large number of cryptocurrencies.
And there is a second point to consider. If you want to trade and store Bitcoin, you need a special virtual safe – the crypto wallet. Hard wallets provide particularly high security here. However, deciding on the right wallet requires some basic technical knowledge. In order to get started in trading not exactly low hurdles. Bitcoin Wallet wants to make things easier. Directly after registration – at least according to the site operators – trading should be possible. There is also no mention on the website that traders must first integrate a wallet into the account.
Bitcoin Profit: First impression and registration
Before we get to the actual core topic – trading on Bitcoin, we would like to describe our first impression for the review. After all, this is not insignificant for the Bitcoin Profit experience. How does the whole thing look in practice?
In general, the site makes a very modern and straightforward impression. In the first third we learn more about Bitcoin Trading – including the short FAQ. By the way, short is to be taken literally here, since only a few very few (and very general) questions are answered. Among other things, we learn that Bitcoin Profit says it relies on a state-of-the-art platform.
In addition, the operators also make it clear here that the trading account must be topped up for trading – with at least 250 EUR. The second half of the page is about user experiences. However, in our opinion, these are rather meaningless. It is peripherally interested in the investment decision, on what other traders spend their profits. Here, the presentation of a model portfolio with performance charts makes much more sense. However, in the end this aspect is in the eye of the beholder.
How easy does Bitcoin Profit make it for us to register? The whole thing is surprisingly simple. Very little personal information is required to open an account through Bitcoin Profit. These include:
- First name
- Last name
- Email address
- Mobile phone number
The form is very easy to find, so even beginners should have no problems with the registration. By the way: There are no fees for opening an account on the platform. In addition, the data connection is secured with SSL encryption – which complies with current standards. In this respect, our Bitcoin Profit experiences hasn’t revealed much that stands out so far. Will we continue to do so or will we come across signs of Bitcoin Profit fraud elsewhere.
Bitcoins: Here’s how the trade works
Directly after clicking “Get started now” we expected the Bitcoin Profit Test to take us directly to the backend where we complete our registration. But: To our surprise, the platform led us directly to the site of a broker, where we were asked to complete the registration.
There was no mention of this on the Bitcoin Profit website – neither directly on the page nor in the terms and conditions. Closing the registration with the broker (in our case Investous, which is based in Cyprus) also involves a review of our investment experience and asset class. Why does the broker want to know exactly?
The classification of traders is now mandatory in the EU. Background are ESMA guidelines which have been in force since 2018. These stipulate that brokers may only offer certain products to professional investors. In order to assess in which category we belong, Investous uses these questions to assess our investment experience or whether we are perhaps even professionally from the financial market segment.
CFD Broker Investous at a glance:
- Easy account opening
- Demo account with 100.000 EUR
- Trading on Forex and CFDs
- Retail customers Leverage maximum 1:30
Does Investous trade directly on Bitcoin? No, according to our Bitcoin Profit experience the financial products offered are so-called derivatives. Bitcoin and Co. are only the underlying assets on which the position is opened. The broker offers trading in currencies (Forex) and CFDs. However, trading with Bitcoin is not a classic FX contract, as cryptocurrencies are not currencies in the sense of currency trading.>> Register at the Official Bitcoin Profit website
As already mentioned, Investous trades with leverage. The maximum for the retail market is 1:30 at most (including major currency pairs). In crypto trading, the leverage is much smaller, as here trading is allowed at a maximum of 2:1. Leveraged products have an advantage: The trader can trade both short and long positions.
Attention: The leverage can also run against the trader. In this context, there is a considerable risk of losses, which should not be underestimated. A fact that must be clear to every investor. Entering the market without market knowledge quickly leads to wrong decisions. This includes:
- Fundamental data
- Chart analyses
to be included in the trading strategy. Another point concerns the use of stop orders. The latter closes the trading platform when the set mark is reached. This allows you to build loss limits into the trades – or take profits with you. A particularly practical instrument in this context is the Trailing Stop. Here the platform follows the Stop Loss as long as the price of the underlying Bitcoin rises.
Tip: Newcomers have the opportunity to open a trial account with Investous Broker, topped up with 100,000 EUR. The opportunity to trade with the demo account is certainly helpful when getting to know the platform.
Bitcoin Profit: What drives the BTC price
When it comes to BTC trading, the question is of course also what drives the price of the currency? As a cryptocoin, there are indeed no counterparts as in classic currency trading. But: Here, too, some fundamental data are effective. These include efforts by governments and central banks to exert greater control over the coins. This point is made clear, for example, by the bans on trade in China or Bolivia.
Especially when large markets are closed, this depresses the price. The same applies to hacker attacks on crypto exchanges – or, if fraud becomes public.
At the same time, the price is very strongly driven by demand. Here, traders should keep an eye on the halving forecast for 2020. The latter will lead to a halving of the number of Bitcoin per block. In recent years, these events have cast long shadows – due to a significant rise in the Bitcoins price. Experts assume that in the coming months the price will continue to rise as the halving approaches.
Conclusion: Lostraden immediately after registration
Bitcoin is probably the “lead currency” in cryptocurrencies. A finding that is not only based on the fact that BTC currently has the highest market capitalization. Bitcoin is also the oldest cryptocurrency. And despite forecasts to the contrary, the coin still exists. What is the conclusion of our Bitcoin Profit experience? At first glance, the whole thing looks like an opportunity to invest in Bitcoin quickly and without major hurdles. To suddenly find yourself at a CFD/Forex broker after the trial registration is a real surprise. Especially since the platform mentioned this step with one syllable. What stands out positively in the end is that the partner broker sets up a demo account. In the test we would have liked Bitcoin Profit to provide us with more transparency so that the platform does not set up the trading itself.>> Register at the Official Bitcoin Profit website