Brokers from all over the world including forex traders have started accepting bitcoin. Speed of Transaction and Security of the cryptocurrency attract many trading companies. 

Some of the trading companies whose market shares sky-rocketed after the inclusion of bitcoin to their transactional domain are:

• JPMorgan Chase(JPM)
• Square (SQ)
• Coinbase Global
• Nvidia technologies
• Advanced Micro Devices (AMD)
• PayPal Holdings

In recent speculation of events evolving around tweets of one of the most influential people in the world, Tesla also made to the list by benefitting of about 1.5 Billion USD. Elon Musk tweeted about Tesla guaranteeing the transactional status of Bitcoin and handing out shares purchasable through Bitcoin. This helped the company as well as the individual price of bitcoin to rise.

Markets accepting Bitcoin

Bitcoin was first developed to compete with international money like the US dollar, The Euro, The Yen. Bitcoin wanted to grasp the local market so that the currency could attract buyers and become the most widely used currency in day-to-day transactions. It failed to do so initially but it gained popularity later. The anonymity of transactions was one of the key features of Bitcoin. Bitcoin is widely accepted in various sectors some of them are as follows:

• Stock Market and Investing
• Investment Banking
• International Money Bonds
• Forex trading and transactions
• Food and Hotel supply projects
• Non-Governmental Tenders.

El Salvador became the first country to introduce legal tenders involving bitcoin. The country also allows its citizens to use bitcoin for day to day transactional purposes.

Advantages of using Bitcoin in stockbroking

• Anonymity – Bitcoin transaction doesn’t reveal the data of the sender to the receiver other than the transaction receipt. This helps to trade a lot easier with a lot more companies for the trader without incurring conflict of interest at any point.
• Speed of transaction – Bitcoin transactions usually take a fraction of a second irrespective of the amount or if being sent somewhere very far.
• Security – Bitcoin transactions are one of the most secured means of transaction. The security provided by the blockchain facilities attracts more people as it reduces the probability of being defrauded.
• Availability – Bitcoin can be mined anywhere by a set of algorithms mathematically breaking down equations or by using actual currency and converting them to a bitcoin wallet. Thus Bitcoin is widely available which helps traders to invest easily.
• Non-taxable and low processing fees – Since bitcoin is not legalized and there is no specific government body mining bitcoin, the cryptocurrency is free of any tax. The transactions taking place in Bitcoin does not require any processing fee or convenience fee to be paid to the bank for the same reason. A processing fee of a very low amount is charged by the software where the bitcoin wallet is generated.

We can take examples of bitcoin trading from different countries. Here is the link to one such German Bitcoin Wallet and Trading site to know how to buy and spend bitcoin

Disadvantages of using Bitcoin in stockbroking

• The difference in exchange rates of currencies of different nations is harmful to traders. A certain valuation in bitcoin in a country could either increase or decrease in some other country due to exchange rates.
• High Volatility could be a major factor. The value of a Bitcoin is never stable. Depending on the investors and influential people, Bitcoin may rise or drop down for a lot of points which can incur hefty losses to trading companies.
• High Leverage is a major factor. Traders risk their assets by offering high leverage against bitcoins and respective blockchains. If the company occurs at any point, there is a risk to the traders for loss of assets due to their high leverage.

Conclusion

Maybe Bitcoin is widely being used in the trading industry due to its speed, access, low-cost processing or availability, there is always a possibility for the worst to happen given the volatile nature of the currency. Leaving out a few risks, Bitcoin is much beneficial to brokers and traders.