Bitcoin seems to just keep on generating buzz. Whether it is the mystery behind this particular cryptocurrency, and who started it, or whether it is the potentially huge profits it can generate, the media keep on reporting about it.
Like many investments over the last twenty years, it is easy to believe that it is too late to get involved. Early investors in McDonald’s, Apple, and Amazon, have all seen their stocks soar in value, and bitcoin is no different.
The very first price increase for bitcoin occurred back in 2010 when they were valued at $0.08. Currently, bitcoins are valued at around $34,000 and have reached a high of over $60,000. This is what puts some people off getting involved, but are they right?
Is there any reason to get involved with bitcoin trading today?
The most common thing that individuals who are interested in investing do is that they look at previous successes and assume they are too late to join in. With many stocks this may be true, some may have peaked and they won’t go much higher.
However, cryptocurrency is different.
When asking yourself whether it would be a smart decision to start trading in bitcoin this year, you have to understand the ways you can make a profit.
There is the long-term investment, and then there are shorter-term types of trading, and lastly, there are extremely short-term trading methods. But, there are also some automated ways to trade that can help bring profits.
How can you make money on bitcoin today and in the future?
To start trading you will need to organize a few things. You may like to get a bitcoin wallet. This is a way to store your cryptocurrency away from the exchanges. Cold wallets are completely offline and are the safest storage method, while hot wallets are online.
You can also keep your bitcoin in whichever exchange you use if you prefer. Typically, they will store crypto in cold wallets, while keeping some in hot wallets for trading. There will also be insurance policies in place in case of any breaches.
To actually trade you will need to use a platform or app of some type. There are many available, and one such app is Bitcoin Profit which is available at the Google Play Store for download. This particular app has an automated trading system and may be a way for casual traders to make profits on bitcoin today.
In what ways can you trade on bitcoin?
One way that many people approach bitcoin is with the attitude to get rich quickly. This is generally the wrong approach to take with any trade. Trading is not the same as gambling, although there is for sure an element of risk.
If you are looking for the long term, then study the fluctuations and history of the cryptocurrency you are interested in. Do you think there is a future there? Then invest for the future.
If however, you feel that there will be continued highs and lows, then you can try to exploit this through day trading or swing trading. Alternatively, you could use automated trading apps instead.
An automated app such as Bitcoin Profit uses trading robots to make decisions. They promise that their robot’s accuracy is 99.4% and they use advanced technology to have a slight edge over the competition when it comes to reaction time.
This type of trading takes some of the risks out of the hands of an inexperienced trader, although as with all investments, there is always room for error.
Is it safe to trade bitcoin through an app?
Bitcoin exchanges and trading platforms use international standards for security, and they have to remain compliant with data protection laws. The biggest danger with trading bitcoins doesn’t lie with the app, but with the currency itself.
As you probably know, cryptocurrency can be very volatile. Elon Musk has managed to affect at least two types of crypto recently in a dramatic fashion. Firstly, Elon Musk made a purchase of $1.5 billion through his company Tesla, which caused Bitcoin to surge to a new high. Then he made a joke about Dogecoin, causing the value to plummet.
It is this volatility that worries some investors. The power of short selling has been seen recently in the Robinhood – GameStop – Reddit story. The risk with bitcoin is that if major sellers dumped their holdings, the value would plummet. This is one reason why an automated robot trader might be a good idea for beginners.
Summary
There are many things you should know before you start buying bitcoin. These include an understanding of wallets, exchanges, and trading platforms. Before you invest in any form of cryptocurrency, understand its volatility and the financial risks involved.
Once you are happy, it is just a matter of choosing which is the best app for you, and which crypto to trade in.
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