For Bitcoin buyers and traders, the market has never been more exciting. For the rest… Well, you’re probably asking what a Bitcoin is.
First things first: Bitcoin are digital currency that are traded on a peer-to-peer market. The system was created in 2009 by Satoshi Nakamoto and has been growing ever since. Think Bitcoin as a sort of an electronic cash system.
Why use Bitcoin instead of traditional cash? Many users love it because it operates outside the regulations and restrictions of traditional banking organizations and government entities. This means that Bitcoins can be used as payment for literally anything (assuming that the seller accepts Bitcoin as a payment). It also means that Bitcoin payments can’t be tracked to individuals – an exciting endeavor for both radical resistors who aren’t big on having their every movement documented, as well as techie types who are eager to be a part of a digital currency movement that protects users’ private information.
Even regular old non-techie folks can appreciate the fact that Bitcoin payments transfer instantly and involve no (or very low) transaction fees.
Bitcoin does have a few drawbacks. Because the system is still relatively new (compared to traditional cash and credit cards), many merchants still don’t take Bitcoin as payment. The price of Bitcoin can also be rather volatile, meaning that Bitcoin buyers can see their investment increase quickly, while others may be frightened off by the ups and downs.
Buying and Trading Bitcoins
While some people use Bitcoin as digital online currency for purchases, others use it as a way to make money. Some buy Bitcoin and quickly sell it when the value increases. Others opt to hold onto their Bitcoin and wait for the price to increase over time.
Over time, the Bitcoin investment world met the traditional investment world when firms began allowing Bitcoin-backed stock trading. With this, many users have found Bitcoin to be a useful vehicle for their overall investment portfolio.
AvaTrade UK, for example, provides users with the opportunity to use Bitcoin to enter into the CFD market. Their platform allows Bitcoin investors to trade the digital currency against the greenback 24 hours a day, 5 days a week.
The AvaTrade platform is intuitive. Users need only to open a trading account on AvaTrade UK and then fund their account. Next, they choose which contract best suits their needs before they begin trading. The platform isn’t only relegated to trading, however: it also gives users the ability to buy Bitcoins with a portion of their money and set a specific amount aside for trading.
Where should you put your focus? It all depends on your individual investment goals and willingness to sit tight through potential Bitcoin volatility.
What Will the Future of Bitcoin Trading Look Like?
When Bitcoin was first introduced, most people shook their heads and insisted that it was nothing more than a flash in the pan that would amount to nothing. When the first mainstream merchants such as Subway and Microsoft begin accepting Bitcoin as payment, the naysayers continued to express pessimism about the system, relegating it to the same box of trends as micro disc audio players (remember them?).
With Bitcoin entering as a player on the world’s stock trading platforms, the system is undergoing yet another change. Can it continue to be the underground anarchist’s dream currency even as it gains prominence and moves into the mainstream? While the answer to that question is unclear, one thing that is certain is the rise in value Bitcoin has seen over its lifespan – a rise that has confounded those who predicted its demise and delighted those who got on the Bitcoin roller coaster and stayed along for the ride.
Now that Bitcoin is being recognized as a tradable asset for investment plans, the adventure continues…