In times when Bitcoin is reaching heights in value that no one thought are possible, investing and trading with it has never been more popular. At the moment, this cryptocurrency is valued at around $60,000. Not only that, but many experts believe that it even has the potential to rise as high as $100,000 by the time 2021 ends.
With that being said, there are tons of things to consider when investing in it. That is why we wanted to provide you with some general points that you need to get familiar with if you are thinking of signing up and trading with Bitcoin. Let’s check all the details.
The Type of Investment
There are two basic forms of investing in Bitcoin – long-term and short-term. Long-term investments mean that Bitcoin is at a low, but it is expected to rise in value soon. Short-term investments are the opposite. Bitcoin is already at a high level, but it is expected to fall.
You should consider which type of investment should you do depending on the current market situation as well as your individual preferences. Short-term investments lead to fast money, but the profit with long-term investments is always much more substantial.
Next up, we have something that can make all the difference in the amount of profit that you make. As you may know, trading sites are the platforms where you can buy and sell Bitcoins. Registering at a reputable site can help you maximize your profits and here’s how they do it.
Well-established trading sites usually utilize an AI system that is constantly checking the market for the latest developments. It collects all types of data concerning Bitcoin. Then, it analyzes it and uses the results to make accurate predictions on all of its future fluctuations.
One of the platforms that have managed to master this type of service is Bitqh. This trading site has a very high daily profitability rate and its services are being used by thousands of people from all around the world. If you want to gain access to them, all you have to do is register. The process is fast and lasts just a minute.
The Volatility Rate
One of the most important things that need to be taken into consideration is the volatility rate. Bitcoin has a high volatility rate, meaning that its value often surges and falls. In fact, Bitcoin is so volatile that these fluctuations are happening daily. That means that if Bitcoin is on the downfall for a few consecutive days, that doesn’t mean that it is about to plunge.
Vice versa, if Bitcoin is on a roll and rises for a few consecutive days, it doesn’t mean that it will continue to do so. Sudden rises in Bitcoin’s value are often connected to the concept of FOMO. The concept of Fear of Missing Out is commonly found in novice traders.
When they spot that Bitcoin’s value starts to go up, they are under pressure to invest in Bitcoin out of the fear that they might miss out on a hefty profit. But, after they make a massive investment, they see the price of Bitcoin fall and thus, they lose money or are forced to wait a longer period before they can profit off their investment. The more experience you gather, the better you will be able to deal with this psychological challenge.
Learn All Bitcoin Terms
Finally, to get more familiar with how Bitcoin works and what is the technology that powers it, you must get familiar with all the terms and processes that are featured in this network. Mining, halving events, the hash rate, e-wallets, public and private keys, and blockchain are just a few of those that deserve a mention.
The faster you learn them, the easier it will be for you to become successful and master the art of Bitcoin trading and thus, have an easier road towards making a substantial profit.