Bitcoin trading discovers new top – are you missing out?
The crypto market is exploding, and a strong upwards momentum is driving rates to the highest levels they have been since last year. Breaching the $9000 level, Bitcoin is currently on a massive rally and other altcoins are following close on its heels with higher than 5% and 10% gains in Ethereum and Litecoin respectively. Bitcoin trading volume is constantly racking up as well with investors doubling down on cryptocurrencies as interest is at an all-time high.
Cryptocurrency skeptics will still won’t budge from their view that Bitcoin is a highly speculative and risky asset with no inherent value and of course no central bank backing. Be that as it may, however, it seems there’s no breaking confidence in the Bitcoin rally as it continues to breach major resistance levels month after month. Though, industry pundits do agree that in order for the bull market to be confirmed, Bitcoin needs to hit the $11.500 mark. If recent price action can tell us anything; it’s that we should be witnessing a raging bull market sooner rather than later.
The fastest-rising currency in the financial markets
Volatility is a trader’s best friend and Bitcoin indeed enjoys a lot of intraday volatility. After a long period of hibernation, it’s now approaching appreciation levels, not unlike the ones in its massive 2017 bull run to $20.000. Most financial experts don’t feel like these huge bubbles are favorable, but no one can deny the benefits they provide to speculative trading.
In fact, instead of wondering if the price will rise exponentially in the coming months or if it will eventually zero out; some traders try to better position themselves in order to take full advantage of the current crypto market fast moves.
It goes without saying that when you hear about Bitcoin – what comes to mind is mostly hacks and scams and illicit purchases on underground internet communities. But if all the FUD could be ignored and a more sober frame of mind could be adopted, people would likely see the real opportunities offered by the cryptocurrencies, if not as a store of value, at least as a means of diversification.
Investing in crypto provides a range of options and Bitcoin trading is just one of the ways you can adjust your investment portfolio. Trading Bitcoin CFDs or outright buying a few altcoins can potentially be quite profitable. In fact, if you invested in crypto at the beginning of the year, you would have seen a whopping 111% return on your investment and the bull market just started ramping up the speed. If you wanted to play it safe of course, you would have invested in stocks instead and gained a little more than 10% albeit without the added risk.
Hype always brings the fear of missing out and investors flock to empty all their savings into an asset. The main advantage of trading Bitcoin, however, stems from the fact that you don’t need to throw your life savings at it to make a return. The market allows you to profit from price deviations however small they may be and in addition, you even have the capability to speculate that the price will fall back down and profit all the same.
When trading Bitcoin, Ripple or any other altcoin; the key is always having a plan or a blueprint that you can rely on. Even now, it’s incredibly easy to sign up on a platform and start trading to your heart’s content but if you want results, you need to follow the established rules in order to protect yourself from any risks.
- Do your research. Be on the lookout for news and updates regarding cryptocurrencies and use the insights to inform your trading strategy and your next step.
- Invest wisely. Proper money management needs to be exercised from the very beginning. Invest only what you can afford to lose and set your savings aside.
- Learn about risk management. Bitcoin trading is extremely volatile and unpredictable. In order to succeed, you must learn how to manage risk exposure with proper position sizing and by using stop-losses.
Trading Bitcoin has clear advantages and even though it still hasn’t matured enough as a financial asset – it’s potential can’t be ignored. Year after year, the trading volume has proven that cryptocurrencies are an attractive investment vehicle for those willing to take the plunge.
Regardless, of the intraday volatility and constantly breaking year-to-date highs, Bitcoin can provide investors with the means to diversify their money and a way for them to grow their capital.
As any other financial market, however, crypto has its own tempo and traders need to follow strict rules in order to protect their investment – especially now that trading Bitcoin has become so accessible to the masses.