In the last months of 2016 and first months of 2017, there has been an substantial rise in Bitcoin value – and Bitcoin trading. Many people were not aware of the whole concept of cryptocurrency until recently. However, with media and government authorities paying attention to the cryptocurrencies, the concept and the possibilities of opportunity have gotten the attention of many – especially given the bitcoin bubble hype that puts Bitcoin in the news. When people become more interested, the price increases, and often decreases when the hype fades.
Digital currency (or cryptocurrency) is quickly gaining interest as it is becoming more widely accepted worldwide. The main reason for the rise of digital currency use is that it makes transactions between two people quicker, and without the usual extra costs involved. In addition to being less-expensive and faster, transacting with Bitcoins is safe and secure when best-practices are employed. Cryptocurrency secures all the transactions, and every transaction has a unique personal key or signature. But the question explored in this article is whether or not bitcoin trading remains volatile.
Bitcoin trading can be extremely profitable for professionals or beginners. The market is new, highly fragmented with huge spreads. Arbitrage and margin trading are widely available, and when Bitcoin’s price rises – new investors and speculators want a share of the profits. Therefore, many people can make money trading bitcoins, because it is easy and the entry barrier is minimal. If you already own bitcoins, you can begin trading almost instantly. If you don’t own bitcoins, buying them is simple and there are online trading companies – personally, I trade as a member of the Trade Coin Club (TCC) due to the automated back office tools available TCC offers. I am not an experienced trader, so the auto-trader with a stop-loss in place trades on my behalf Monday thru Friday. There is a fee to use the service as a member, but the total gains far outweigh the fees and I am very satisfied with the results.
Trading bitcoin is exciting and unique – but I trade using funds I can afford to lose. Bitcoin is known for rapid and frequent price movements, and the TCC auto-trader takes advantage of these movements daily to allow trader members to reap quick benefits. Of course, one can manually trade bitcoin – but again, this is not an option given my personal level of experience. While the daily price movements, global nature, and 24/7 trading is exciting – there are risks one should understand when trading bitcoin. As with any type of trading, your capital investment is at risk. I started with a small amount to learn how trading works and see if I could make a return. I like that the TCC practices trading strategies through an understanding of market signals that I simply do not possess at this stage.
Just like the stock market, bitcoin trading involves buying at a low cost and selling when the price has gone up. By becoming a member of TCC, I do not need to monitor the trading market for an opportunity to make profit through buying and selling of the bitcoins – the auto-trader does this for me by trading different digital currencies and changing my bitcoin balance into any of these currencies to realize a profit or loss daily. Bitcoin currency is highly volatile, and if you’re not well-versed with the trade, you could end up losing your money. Trading offers a high risk, high reward and is super exciting because absolutely no one knows how high or low cryptocurrency can go. I simply deposit the amount of funds I choose, agree to the terms, fees, and membership conditions, set my weekly “risk level” (i.e. low, medium or high) – then allow the auto-trader to essentially exploit the constantly shifting relative values of various currencies simply by moving money around the markets. While I have made money every day since joining the TCC, I am well aware it can be lost just as easily – and that’s why the stop loss is important to me. I wouldn’t consider trading on my own without a clear and well-defined strategy, or the knowledge for technical analysis.
