Trading Bitcoin is often discussed in the community of traders. Bitcoin was first mentioned in 2008, when a group of enthusiasts discussed about a novel method for payment. Initially, no one earnestly accepted the technological innovation, but currently, Bitcoin is already called the basis of the future financial system, and large banks use cryptocurrencies to optimise their calculations; Hence the issue of trading Bitcoin and earning from the changes in its rate remains very relevant.
Why is it Really Worth it to Trade Bitcoin?
High volatility. The price of Bitcoin changes very rapidly. It can rise up to 10-20% in a day.
Trustworthy instrument. Many new cryptocurrencies have not yet earned the attention of the investors, but Bitcoin is the first cryptocurrency and possesses the greatest capitalization.
Easy to analyse using additional indicators. Indeed, Bitcoin is quite easy to analyse using technical analysis. Major price levels are of great importance in making a trading decision.
Fundamental events occur regularly which impact on the dynamics of Bitcoin.
How Do You Start Trading Bitcoin?
- Open a trading account on the broker’s website.
- Install “MetaTrader4” trading platform.
- Deposit funds to trading account in order to start trading.
Main Advantages of Trading Cryptocurrencies With AMarkets
You can begin trading with a small capital.
There is a fractional lot, with a minimum volume for opening trades set at 0.1 Bitcoin.
There is client support available via the trader’s chat, regular webinars on cryptocurrencies, as well as proprietary indicators for analysis of the market.
There is a Bitcoin based investment portfolio for earning passive income.
During trading Bitcoin trading, pay attention to the basic trading terms. First of all, we would like to note that a 1:10 leverage is available, and this allows you to start work with a smaller amount , or to get additional profit due to the increased trading volume.
The other important characteristics are spread and swap. Spread is the difference between the buying and selling prices. The easiest way to understand this term is to think about a bureau de change. There are two prices indicated always. Swap refers to a fee on transfer of position to the following day. In AMarkets, these trading terms are very interesting. Spread is about 10 points, while most brokers are at 40-50 points. Bitcoin swap is only 40 cents.
Trading Ideas on Bitcoin for The Coming Months
If you take a look at the Bitcoin chart for the whole time, you can notice how the asset moves in cycles. Its story is familiar with a lot of ups and downs, and now we are definitely in conditions of an uptrend. Since the beginning of the year, Bitcoin has increased in price by 500% and has every chance to continue this trend. Many analytics have targeted a value of $7000 apiece. Let us pin out several reasons we can attribute to this price.
- The number of Bitcoin transactions is growing at a fast rate. This is due to the fact that many large online stores have already begun or will soon start taking Bitcoin as payment. The most interesting rumours are surrounding the largest online resource, Amazon.com, which will soon announce the beginning of the work with cryptocurrencies.
- In the coming months, the first ETF tool, based on cryptocurrencies may be launched within the US or Canadian markets. Investors have been awaiting a similar event for quite a while. The appearance of such an asset under the regulation of the SEC will allow direct and official investment of a large capital into Bitcoin. This will provoke a sharp increase in its value.
- A market specific for ICO and token trading will also appear by the end of this year. Since the reputation of the ICO has noticeably deteriorated in the recent weeks after the ban by China and South Korea, then with the advent of such a regulatory platform, the situation will dramatically change for the better.