Frequently Asked Questions by Clients

Cryptocurrencies

What is Bitcoin?

Bitcoin is a digital (virtual) currency which can be used to pay for goods and services. This technology surfaced in 2008 and is an analog of payment systems.

Bitcoin and Cryptocurrencies, are they one and the same?

Cryptocurrency is the collective term for virtual currencies. The majority of other successive Cryptocurrencies are based on its technology.

How did Bitcoin become that popular?

First of all, it is because of its lack of central bank regulation, and also because of anonymity of the payments. Besides this, its technology is developed to ensure a limited total number of Bitcoins, with the process of creating new ones slowed down daily, resulting in an increase in demand for it. Finally of course, an interest in it has spiked from many, as its price grew by hundreds, for instance, between April and August 2017, it grew by more than 400%.

Where do Bitcoins come from?

You can either buy Bitcoins that are already in circulation on special sites, or you can mine them on a computer, hence creating them; the latter however requires an initial investment.

What are the Bitcoins for?

The initial idea behind Bitcoin was for it to serve as a means of payment; indeed, a majority of stores are ready to take it on. However, the greatest investment interest is in its purchase, from which significant profits can be drawn. Between April and August 2017, its price grew by more than 400%.

Where are Bitcoins saved?

Bitcoin and other cryptocurrencies are in special wallets, which are found online, e.g on BTC.com. Software programs for saving Bitcoins on computer hard-drives or on smartphones also exist.

What can be bought with Cryptocurrencies?

Given their current popularity, you can buy everything with them. Large stores in the U.S such as Target, Nike, Walmart, and others accept electronic money. Besides that, many online stores take Bitcoins for goods and services.

What is mining?

This is the process of getting cryptocurrency into your wallet. The technical side of things is such that each transaction or exchange, ought to be confirmed by other members of the system, the miners, on their computers, after which, some amounts of these transactions are saved in blocks and one of the miners receives a bonus in the form of cryptocurrency.
For this, you need a powerful computer, which is to be updated regularly, since the process of getting new Bitcoins becomes more intricate by day.

How do you earn from cryptocurrencies?

The biggest profit attainable is not from saving Bitcoins in the wallet, but it is from real trades, i.e buying or selling, in your trading account in AMarkets. In the past few months, cryptocurrency demonstrated impressive growth which is most likely to continue. In this case, you need to open a buying order.

How much will I earn from that?

From 5 August to 14 August, Bitcoin was valued at $1400 more. During this period, trading at minimum risks, one could have earned 50%, and at more aggressive risk, it could have been more than 270%.

Who sets the price for cryptocurrencies?

Cryptocurrency, like any other currency or gold, is a financial instrument. Hence, its price is formulated based solely supply and demand. For instance, when the interested buy a lot of Bitcoin, the price grows; when negative news comes along with increased caution from the investors, the price falls.

What are the risks involved in trading cryptocurrency?

Like any other trading operation, trading cryptocurrency is not without risks. This means that profit is not guaranteed, but the advantage in it, is that each trader is in full control of his orders; therefore, loss in one trade will not exceed 1% of the capital, whereas the profits will be many times more.

Besides Bitcoin, what other cryptocurrencies are there?

Currently, the cryptocurrency total has practically reached 1000. This sector is growing quite rapidly. However, 99% of all the investor’s money is in 10 main cryptocurrencies, hence the recommendation to use just them. Emergent and little cryptocurrencies are not worth an investment of a hefty chunks of capital. Our word of caution is to allocate no more than 5% of the whole capital.

What do I start with?

After receiving the primary information on the essence of cryptocurrencies, for example, based on that, you need to open a trading account with your broker and deposit funds into it. Then you need to place orders in the trading terminal and wait for profits to roll in. You can lock-in profits at any time, i.e close the orders and withdraw the money via bank card or any other payment system.

Is a specific account needed to trade cryptocurrency?

It is not needed. You may select any from the ones outlined in “Trading Terms”.

Can I deposit Bitcoin or other cryptocurrency into account?

Yes. AMarkets is about to launch a Bitcoin trading accounting in the coming weeks. This means that it would be possible to deposit and withdraw Bitcoin or even convert sum in the transfer.

How much money do I need to trade cryptocurrency?

Technically, you may start working with a deposit of $400 for example; the exact amount is hard to say, since it depends on the the price of the cryptocurrency itself. However, to reduce trading risks, we recommend a starting capital in the range of $4000 – $5000.

Do I need a specific software program?

You have to open and close trades in trading terminal, MetaTrader 4. There are 3 versions of the platform – it can be downloaded to PC, opened in browser for web-based version, or as a mobile device app.

What are the trading terms?

The trading terms can be found in detail at this link under “ Instrument Specifications”. For detailed explanations, you can always contact a manager from the company.

How do you buy Bitcoin?

You need to open a trading account at a broker, deposit funds into it, and open BTCUSD buying order in the MetaTrader4 platform.

Can you sell Bitcoin and earn from lowered cryptocurrencies?

In AMarkets, you can both buy or sell cryptocurrency, hence in case of trend changes, you can still profit.

Why does the Bitcoin price grow?

It is attributable to a number of reasons, and the main one is that the interest from the investors, whose number increases daily, does not fizzle out. The sharp and continual growth of the Bitcoin price signals potential high profit yields. Besides this, the very technology, by the creators, behind it promotes the flow of new funds.

Do big companies invest in Bitcoin?

The requirements of the regulatory bodies of many countries prohibit investment companies from working with cryptocurrency, as they are very volatile. Nonetheless, the major U.S SEC regulator is working on paperwork to solve this minor detail. It is possible that the funds from big shareholders, in the near future, can help Bitcoin remake its maximum price bar.

Is it legal to own and use cryptocurrencies?

Each government has its own policies regarding Bitcoin. In the Spring of 2017, Japan declared it a legal mode of payment , becoming the first country to have done it. This is mostly likely to stir other countries into following suit. In the near future, Australia is to follow Japan, and the U.S is working on regulatory documents regarding this sector, though in actual fact there is no talk of official recognition. According to Russian officials, the country is moving towards Bitcoin as well.

How do you learn about Bitcoin breaking news?

A sufficient number of information portals dedicated to cryptocurrencies do exist, and the large mass media has separate sections for this too. Besides this, the current analytics for traders are regularly covered and published on AMarkets’ website.

Will the real Bitcoins bought in AMarkets, be in my wallet?

The trading account is opened in USD, and in the terminal, you buy Bitcoins in Dollars. The changes in the Bitcoin price mean profit or loss, depending on your account. For example, if you bought one Bitcoin for 2000 USD, and sold it for 3000 USD, your profit is 1000 USD, but to get it, you need to close the trade, i.e you have to sell the Bitcoins bought earlier. After that, you can then withdraw the profit in USD. This means that physical buying of Bitcoin and the crediting of it to your wallet does not happen for simplification of procedure, but that does not interfere with earning from the changes in prices. We note however, that in the coming weeks, a trading account in Bitcoin will be introduced. On it, withdrawal and crediting is in Bitcoin.