Bitcoin is a medium of exchange and a digital coin used in cryptocurrencies trading. Cryptocurrencies trading is digital trading across over 1,500 different cryptocurrencies. It replaced fiat currencies which largely depended on the central bank system. Digital trading is popular and has been trending for some time now and is becoming more widespread among international entities. Adding bitcoin to your portfolio has become a mark for traders who focus on the future and create financial freedom for themselves.
One bitcoin is currently trading at 8,067 American dollars, as compared to when it started trading in 2010 in American dollars 0.008 which was quite low. The variation is remarkable and the coin continues to gain momentum against all odds. Bitcoin is one of the highest trading coins in digital currency. The main secret is to buy bitcoin with fiat currencies when the price is low and sell it when the price goes up. Traders who purchased bitcoin when it opened doors in 2010 are now real-time millionaires.
Bitcoin trading is a digital hot cake since the returns on investment are very high and a trader can't hesitate to put money in it since transactions are transparent. You don't even think of losing your money, if you forget your password, it can be reset to allow you access to your digital wallet. Always try hard not to lose your key, keep it safe even if it means noting it down somewhere. The beauty of bitcoin trading is that your identity is concealed, unlike fiat currencies trading where your name and address are mandatory.
Trading in bitcoin is economical in terms of low transactional charges because there is no middleman involved, the transaction is directly between the seller and the buyer. Profit margins are higher, especially if you speculate well and sell at an ideal time. Currently, bitcoin is the leading cryptocurrencies in digital trading with a very huge margin. Bitcoin has been far more stable in 2019 with prices going as high as the American dollar in 20,000. The prices keep on fluctuating and that is the reason why a trader should be very keen and know when it is ideal to trade out.
Financial markets had a good start in 2020 with robust inflows into cryptocurrencies. One particular moment, there was a rise of 35% in bitcoin value within less than six weeks. This showed how volatile Bitcoin can be on the upside as well as the downside. Wise billionaires such as Michael Novogratz have invested 30% of his fortune in cryptocurrencies with bitcoin taking huge amounts. He ventured into bitcoin trading in 2015 and has since realized huge profits of more than 500 million American dollars.
A trader can't go wrong getting into bitcoin trading, you can even start as low as zero point one bitcoin going upwards. With determination, you can grow your bitcoin wallet size by making regular purchases whenever you get money. Before you make any purchase, identify a trusted community of traders to work with so that you gain confidence in the trade. You can also look for a mentor to walk you through your new journey. As a new trader, you gather more information on the trade by reading various literature.
It's good to note that extra caution is required when entering the bitcoin trading field. Bitcoins are on the internet, they are easier to steal and different to trace and return. Bitcoin itself is secure, but bitcoins are only as secure as the wallet storing them. As a trader, securing your investment should be your top priority. With the value of bitcoin going down given the current economic situation, this is the right time to invest. There is a possibility that the price of bitcoin is going to go up soon and those who buy now can make a profit.
It is advisable to sell some of your bitcoin if you don't want to wait for years for a payoff. This is a brilliant idea because it can help you sort out pressing financial problems you have. The percentage which is reasonable to sell I'd you are risk-averse is between 20% to 50%. Important to also note is that bitcoins are treated as property and not legal tender for tax purposes. There is no legal protection since it does not involve physical money. Bitcoin trading is the best way to put your investment and it has good investment returns.