Bitcoin gives investors simply huge potential for trading. So, every time this cryptocurrency falls into the wave of its discussion, the price for it takes off, and then as soon as the hurricane around it dies away a little, its value sags.
Of course, as soon as the price falls, speculators (well, or investors) try to buy at an acceptable cost to them, and then, when the price soars up - to sell. In fact, trading cryptocurrencies is simple, you only need to understand it only once.
Let's see why trading bitcoin is profitable? Trading bitcoins on the exchange has several undeniable advantages compared to the usual trading:
Bitcoin is a global currency. It is not tied to any state, which means it can be considered somewhat independent. Of course, it is influenced by events that occur in the world. For example, if in some country the local currency depreciates or Greece takes another loan, then you can be sure that bitcoin will slightly change its course. The crisis of 2013 greatly affected the value of bitcoin. It was then that in Cyprus (a significant offshore zone) control over bank accounts was introduced. Account holders decided to turn their attention to bitcoin because this currency can not be controlled.
Bitcoins can be traded 7 days a week and 24 hours a day. For him, there are no official exchanges that would be tied to time or have weekends or holidays. There is no official rate or official price either. All this creates simply ideal conditions for arbitration.
Bitcoin is a high volatility. The price has changed at an astonishing rate over the past few months. High volatility also creates excellent conditions for trading.
What are the basic principles of trading on a cryptocurrency exchange (some say it is the same as playing in a casino)? If you have already met with trading, then, most likely, you already know these basics. All that is required of you in order to make a profit is to buy cheaper and sell more expensive. Of course, there is a whole set of tools, tactics and strategies in order to determine when it is better to buy and sell currency.