What is bitcoin trading and investment?
Bitcoin has emerged as the undisputed market leader in the crypto world because of its ease, security, convenience and the affordability it offers. More traders and investors all over are now accepting it as a means of payment and storage of wealth. This has led to the emergence of Bitcoin exchanges where traders can buy or sell Bitcoin using their different currencies. Other traders, however, settle on investing their Bitcoin or holding it due to its highly volatile nature. So, what’s the difference between trading and investing Bitcoin?
Individuals sometimes acquire Bitcoin for the long-term. Investors believe that the value of Bitcoin is likely to grow more in the coming future and will, therefore, give them high financial gains. Investors have a good understanding of the nature and technology of Bitcoin and that is often the reason why they HODL it with intent to use it in the future. The bitcoin market is always growing and flourishing and this quality is what appeals most to investors worldwide.
However, for investors, a very important aspect to keep in mind is the risk associated with Bitcoin. Investment in Bitcoin is very risky and investors are advised to use technical analysis of the Bitcoin market to increase their potential returns. After buying Bitcoin a trader wishes to hold for long-term, the trader should transfer it to a personal wallet for safety until they are ready to trade it on an exchange platform. A few Bitcoin investing sites have established themselves as market leaders but the final decision on the site to use depends on particular individual needs.
It is short term and involves traders buying and selling Bitcoin in order to make profits. Often, these traders are only profit-motivated and have zero interest in learning the technology behind Bitcoin. Bitcoin trading is picking up steam because of the following reasons:
1. It’s volatile.
If the market is well predicted, a trader can rack up huge profits.
2. Its market is readily available regardless of time.
Bitcoin operates throughout and a trader can, therefore, trade at any time of the day.
3. Ease of trade.
Trading Bitcoin is relatively easy; all you need is a verifiable Bitcoin exchange platform and a good Bitcoin wallet.
4. It’s cheap.
Trading in Bitcoin is characterized by lower exchange rates.
Bitcoin trading can be very profitable and at the same time can lead to huge losses. A trader should, therefore: keenly study the market before making any trade, strive to choose a befitting trading strategy and choose a reputable trading platform. A good example of such a platform is executium. It is an online trading platform that has set itself apart by providing a system where traders can simultaneously carry out trade across many cryptocurrency exchanges. It continues to accrue new users every day due to its stunning technology in cryptocurrency trading. Bitcoin trading or investment is as profitable and risky as any other business. Good background knowledge of Bitcoin is therefore crucial before making any trade or investment.