Why Should I Trade Bitcoin?
Over the last couple of years, trading Bitcoin and Bitcoin CFDs has become incredibly popular. This is because of the lucrative benefits that doing so can award those who partake in this form of investment. You have likely heard of these benefits and are now looking to get involved for yourself. On this page, we will provide an introduction to the industry, so you know where to begin.
The reasons to trade Bitcoin are plenty and a more in depth guide how to trade Bitcoin CFDs is available on cryptimi.com. There are a few reasons that can be particularly enticing for traders. These are:
The volatility of the cryptocurrencies can be considered positive. Over the last few years, we have seen serious volatility from Bitcoin especially. From being worthless at one point, it had peaked in value at close to $20,000 in price, before receding to $3000 and then up to $15000 again – all within the space of around 24 months from November 2017 to July 2019. The volatility remains a big pulling point towards investment as those who manage their assets right can turn over very good profits. Most in the industry believe that this high volatility will continue for some years before an eventual stable price is reached. Most other assets, particularly more popular ones, follow suit in terms of volatility.
Going long and short
This volatility provides traders with numerous options to long or short the different assets to good effect. Many believe that the true value of Bitcoin and other cryptocurrencies is yet to come in the next few years and so encourage the practice of HODL – which essentially is crypto’s version of holding a long position on assets and waiting for the value to increase. However, if you want to invest in cryptos and then benefit from quick profits, then shorting can be very useful, particularly in the current climate of high volatility.
Entering or exiting the crypto market is super simple as they are free from discounts or premiums. Thus, liquidity is very high. The rise of cryptocurrency exchanges, such as eToro, has made this even easier as on these you can quickly and effectively buy or sell cryptocurrencies as and when you see fit.
Due to cryptocurrency assets being independent of trading markets, you no longer need to wait for markets to open and close. Instead, you can trade around the clock – the market is always fluctuating regardless of the hour; allowing you to make decisions as and when you hear market news.