With the popularity of Bitcoin increasing significantly over the last several years, Bitcoin trading is becoming widespread as well. When I say widespread, I mean it’s a worldwide phenomenon, and not limited to just one section of the world. Since the price of a Bitcoin is extremely volatile, there are many different types of Bitcoin trading strategies people use.
It’s not uncommon to see the price of a bitcoin rise or fall by as much as 30 percent in a single day. That’s very different from most currency trading, which usually fluctuates around one percent in any given day. The price of a bitcoin can be determined by many factors including, but not limited to, supply and demand, banking blockades, flat currency issues and even market manipulation.
Is Trading Bitcoins Safe?
If you want to trade Bitcoins, you need to do your homework on what Bitcoin trading is all about before diving in. Trading bitcoins is just like trading any other currency, buy low/sell high concept. It is just as the other currencies in terms of the idea and functionality behind it, but it is still just as risky, or even riskier because of volatility, as traditional currency trading. There are a lot of Bitcoin exchanges out there and some that will take your Bitcoin so don’t settle for any exchange. I recommend SimpleFX. I’ve been trading using their MT4 platform for over a year now and have had zero issues thus far. Deposit’s and withdrawal are quick and painless.
Why Bitcoin Trading is Popular
Just like any currency exchanges, bitcoin trading is popular because there is a high risk, high reward factor. Since bitcoin trading is fairly new, there is a lot of unknown. People who have the means to invest in this new digital currency could end up hitting it big if it takes off. But the main reason why bitcoin trading is popular is because it is so new, innovative and worth a lot against other currencies. Current Bitcoin value as of this writing was $580 USD per coin.