It seems that bitcoin traders tend to fall into two different categories, either you accept in the long run and see great potential for high returns as the market matures and the use of the currency develops, or you like the idea of trading profitably when the price rises and falls.
Whether you are someone who likes a buy and hold approach when it comes to cryptocurrencies, or if you want to make money with Bitcoin right away, the fundamental question is still whether you can make a profit.
Where we are now
It’s good to have a perspective when it comes to bitcoin history and appreciate its origins in a relatively short amount of time.
Less than ten years ago, Bitcoin’s Market Capital was around $ 1 million. In just three years, that figure reached nearly $ 16 billion, which is impressive growth by anyone’s standards.
It also suggests that there has been significant price volatility and some spectacular ups and downs between the two dates and numbers.
However, even when it seemed to be on its knees, Bitcoin remained the dominant cryptocurrency, and there will be similar peaks and troughs as we progress through time.
It is also very important to recognize that Bitcoin is still on the road to acceptance, and as technology advances and uses it, this should drive the demand for cryptocurrency, which could increase its value in return.
In light of the fact that Bitcoin can still be seen as a work in progress, this is the main reason some investors have a long-term perspective and believe that this could be a good time to buy and hold.
As stated, because this is still an investment opportunity that is still in its infancy compared to other more established investment vehicles such as equities, it is to be expected that there will be barriers to value.
Using the same argument that increased use and adoption of Bitcoin will drive value up, there is a chance of making a profit if market sentiment drives the price higher than you originally Paid.
If you are a trader who loves the income-generating potential of market volatility, Bitcoin can be considered an excellent investment environment as it offers the opportunity to take advantage of regular price fluctuations.
More mature market
While price volatility is a common feature of cryptocurrency, overall there has been a noticeable shift in the extent of this volatility as the Bitcoin market begins to mature.
Simply put, as the adoption of Bitcoin becomes more widespread and more widespread, this means that the price swings were not as wild as they were in the early days.
This is not the case.It means that trading opportunities are not enough at all, but it seems that trading Bitcoin is unlikely to be such a wild ride, because the broader price stability is fueled by the wider adoption of Bitcoin.
Every day’s deals promise
Knowing that wild price swings are not as regular with Bitcoin can be seen as good news for short-term traders, as it could mean losing might not be as painful if you can close at a price that is not that far from your initial price. transactions.
Despite the reduced volatility compared to previous times, it is not uncommon for bitcoin values to rise and fall in whole dollars throughout the day, which means that each day presents a potential opportunity to create profits.
Despite the fact that there are currently some chances to make money trading cryptocurrencies, it should also be understood that understanding how the market works and behaves is a lifelong learning curve.
Having this mentality that you always learn and hone your technique should help you maintain a high level of concentration and inspire you to stay on top of current market trends and research to have information that can be critical to your trading performance.
As with any form of financial trading, controlling your emotions as best you can and being focused are qualities that can often help you achieve regular and consistent profits.
Suffering goes hand in hand with making a profit, and it might be wise to review what the cumulative benefits really matter at the end of the day.
Is mining right for you?
It is worth getting to the topic of mining and briefly discussing whether this angle is appropriate for your Bitcoin trading strategy.
Mining is a completely different ball game and while winning may look attractive, it should be noted that it requires a high level of computer skill and processing power.
The so-called rigs you can set up for this mining often cost many thousands of dollars and this is not an aspect of bitcoin trading that suits those with limited investment capital and lack of computing power and know-how.
With all of the above, you may decide that the best trading strategy for you if you are new to bitcoin trading is to make a direct investment in cryptocurrency.
This is a simple strategy that involves buying Bitcoin directly and then trading it with other cryptocurrencies, but it can allow you to cut yourself up and discover new ways to try to make money in this dynamic market.
Could this be the year that proves there is still a lot of run in bitcoin trading?