Crypto: How to make the most of Bitcoin
If you are trying to figure out what’s the most intriguing trading asset today, your answer is Bitcoin. Why? It’s just the first and the most popular worldwide cryptocurrency and digital payment system. When you are browsing the net checking the news headings, your eyes inevitably catch its name and constantly increasing numbers beside it. In 2017 everybody is talking about it while trying to find a way to get more profit from it. So what this hype is all about?
The world met Bitcoin for the first time back in 2009, when Satoshi Nakamoto published a whitepaper called “Bitcoin: A Peer-to-Peer Electronic Cash System”. What makes it truly revolutionary is its peer-to-peer system (P2P), where transactions are made by users and between users directly, without any intermediaries, commissions or delays. All account holders remain anonymous, while transactions are secured by the network of codes and public records. It’s called blockchain and more and more people consider it a technology of the future. No surprise that it’s gathering more and more followers around it.
This year Bitcoin is getting more popular than ever, with it’s price increased almost 8 times already. Black Friday shopping and Thanksgiving rush brought the interest of many investors, allowing Bitcoin to rise for more than 6% in only a week.
November 26 at 06:40 UTC the Bitcoin price reached $9,000 for the first time in history. However, it didn’t stop right there and set the new record only 35 minutes later - $9,043. The whole market of cryptocurrencies is still affected by it hitting the new high of the combined market value - $285 billion.
Tim Enneking, managing director of Crypto Asset Management, advises "Don’t chase Bitcoin prices. Decide on a entry point and stick with it. With Bitcoin, you’re almost always right in terms of foreseeable price action – it’s your timing that might be off. So, be patient, and let the Bitcoin price come to you."
7 Tips for profitable Bitcoin trading
- Don’t waste your time on speculation - learn how it works first. There are loads of information about Bitcoin online, use it for your own advantages.
- Be cautious, there will be high risks. If you decided to take part in the Bitcoin rally, you need to be prepared for the risks involved.
- Keep in mind the extreme volatility of Bitcoin. There is really not much that can be compared with it, so avoid transferring huge amounts of your personal funds in it, especially if you are just learning how to deal with it.
- Pick up a strategy that goes really well with it. Nowadays, the absolute majority of Bitcoin traders prefer to use Dollar Cost Averaging or just hold to their invest till death set them apart (it’s actually called ‘hodl’).
- Diversify your investments effectively and don’t put all of your eggs in one basket. There can’t be too much risk management.
- Stay ahead of the game (and the rest of the world). Follow the news and discuss the latest trends with other members of the community. Start thinking Bitcoin.
- Manage your Bitcoins safely and avoid hackers. There is a lot of hype around it and, unfortunately, it makes it vulnerable. Stay safe!