55.5 F
New York
Monday, October 26, 2020
Home General Bitcoin trading: How possible is it?

Bitcoin trading: How possible is it?

Bitcoins are a virtual currency of the latest generation, which has now become very important and officially recognized as the main among the cryptocurrencies on the market. Being an atypical currency that works exactly like all the others, today it is possible to trade on them.

Bitcoin trading: how does it work?

Bitcoins are based on a modern and technological system called blockchain; a decentralized digital currency is defined in that it is not issued by any bank as happens with the FIAT currency (currency in legal tender). Bitcoin is therefore independent and runs its own way, without being managed by governments; Bitcoins are created by users themselves who “undermine” them, that is, they create them by making part of the computing power of their PCs available to the system.

It is therefore a peer to peer system (ie not based on a central server), a network of independent nodes that takes the place of a very powerful server.

The advantage of bitcoins lies in a main factor: while traditional currencies tend to devalue due to inflation fueled by central banks, which can issue money at will.

Bitcoins are not subject to the monopoly of any kind and the money supply increases extremely slowly: the direct consequence of this is that bitcoins tend to appreciate over time.

A natural corollary of what has been said is that bitcoins in the future represent a great long-term investment opportunity, but this does not mean that trading bitcoins cannot be convenient from the start.

Mining bitcoins (i.e. creating money, issuing it like a bank) is not convenient because it requires a lot of time and resources (building an effective structure for mining bitcoins requires high investments).

How should you invest if Bitcoin price is falling?

What to do in these cases? It is possible to invest downwards in Bitcoin in order to take advantage of the bearish trend. When Bitcoin drops, speculators can then trade downwards through the best recommended brokers that offer this service.

Bitcoin’s price goes up: how to invest?

How to trade when the bitcoin price goes up? In these cases it is necessary to open long positions / buying bitcoins through contracts for difference on the recommended top brokers. And in some cases, you might need an immediate edge platform.

We advise you, also in the case of rising trends with continuous forecast, to properly set the fundamental trading tools such as:

Stop loss;
Take profit.

With a longer-range time projection, some Bitcoin experts argue that we are facing a new “Halving of Bitcoin” phase, or a new expansion phase – exactly, before this, two have already occurred. In the expansion phase, a market bubble is expected that will probably burst only after touching and exceeding a new maximum never recorded so far. Today, many experts therefore believe that investing in bitcoin today is the right move to make in the sector and through online trading and the leverage available on the best trading brokers.

Online bitcoin trading on the best trading brokers is one of the most interesting aspects to be considered by an investor, especially if the latter does not have large amounts available to invest directly on the cryptocurrency by purchasing currency on the exchanges. By using the leverage effect on bitcoins, you can exchange your investment multiplied by the leverage itself.

When carrying out these trading operations on bitcoins and other underlying assets, we always recommend the stop loss and take profit setting; with the first we set a maximum value of any loss that we are able to sustain if our negotiation is not going in the right direction. With take profit instead, we are able to tell the broker’s platform to close the position if the negotiation price reaches a price that we consider satisfactory to obtain a good profit from the transaction itself.

Are Bitcoins Legal? Is Bitcoin trading convenient?

The bitcoin system is now established internationally, all the major banking and state organizations are aware of the currency and accept its exchange, it is for this reason that financial intermediaries commonly called brokers can afford to offer bitcoin trading in a way absolutely legal.

The problem is, if anything, another: it is such a free and self-regulated system that the governments of the nations are looking for more restrictive methods of control towards the most important virtual currency in the world, given that it is not possible for the moment to trace the movements of bitcoins as is normally done with credit cards that include “virtual” but equivalent currency.

If you want to start trading on the online bitcoin cryptocurrency, you can open an account with a qualified broker. You really need a reliable platform to trade on bitcoins. Hopefully this article can give you an insight into the prospects of bitcoin trading. Thank you for reading and good luck.

[Written by External Partner]

Team G Stylehttp://www.gstylemag.com
G Style Magazine brings you the latest news on what has style in technology!. G Style Magazine is a magazine for the digital age. Being an digital magazine, G Style focuses it's attention on setting the tone for all things fashionably technicalĀ.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Team G Style

329 POSTS15 COMMENTS