Bitcoin is a virtual currency which is not a stock or a company, but is very much possible to invest in or trade. Bitcoin is used to make transactions online. It is a convenient means of paying for goods and services over the internet.
Bitcoin has been around since 2009, but there are still many people who don’t know what it is, how it works and what it can be used for. If you are unfamiliar with the term bitcoin or don’t fully understand what it does, you can refer to the many tutorials and videos that have been published on the internet about this extremely lucrative digital currency. Through the plethora of information you find online, you will be able to get a good understanding of what is Bitcoin, how it is used and how you can invest in it to generate substantial returns.
Bitcoin trading has changed the lives of many people. It has turned ordinary people into successful investors. But, is it still a good time to invest in bitcoins? Let’s take a look.
Bitcoin – Highs and Lows
When bitcoin was first released in 2009, it wasn’t traded on any exchanges. In fact, no one knew what its future would be in time to come. In 2010, the very first real world transaction involving bitcoins was carried out by someone in Jacksonville. He spent 10,000 bitcoins to purchase two pizzas. During this time, the value of one bitcoin was less than $0.01.
In July 2010, the value of one bitcoin increased to about $0.08. Within five days, it increased 1000% taking its value to $1.00 per coin. In July, 2011, one bitcoin was worth $31, but very soon it dropped down to just a minimum of $2 per coin. For the next two years, the digital currency was subject to constant increases and decreases in value, but in November, 2013, it increased to a whopping $1,242 per coin. Then again, the price kept increasing and decreasing, until in December 2017, when it reached a value of over 17,000 per coin.
No one had ever expected a digital currency that came out of nowhere could become so valuable. For investors, this period was extremely profitable because it helped them generate considerable profits from their investments in bitcoin.
As we can see, the price of bitcoin has gone up and down and up again. But there has never been a time when it crashed completely and could not revive.
What Investors Feel?
Many investors, especially those who are experienced know that the markets are largely driven by emotions. They know that for them to be successful, they need to understand the market psychology. In addition, they must know how to conduct technical analysis and comprehend charts and data so they can come up with the right predictions.
Traders know what they need to do and what steps they must take before they can be successful with their investments in bitcoins. But somehow, they keep falling for the traps that they should avoid.
When the value of bitcoin rose to more than $17,000 per unit in 2017, many investors rushed to buy the coins. However, the value dropped later on and the investors could not cope up with the losses they made. Today, the market is growing and there is a steady progress that can be seen as far as the value of bitcoin is concerned.
But, somewhere there is hesitation among investors about whether they should trade bitcoin or not. It is the fear that some people have that is preventing them from taking advantage of the significant investment opportunities that is presented by bitcoin.
Bitcoin is neither a pyramid scheme, nor it is dead. It had its lows, but that doesn’t mean you refrain from trading the coin altogether.
So, Is It The Right Time?
It is definitely the right moment to invest in this incredible digital currency. The markets have taken an upward trend and the technology that drives bitcoin is popular than it ever was. Blockchain technology has its benefits and its demand will increase further in the near future.
You may feel that trading bitcoin is risky, but if you have the right tools and partner with an excellent broker, you will be able to see success eventually. Bitcoin Compass is a great trading software which derives trading signals after undertaking a thorough analysis of the digital currency marketplace. With this software in hand, you will know in advance the direction in which the markets will move. Basically, the software is equipped with indicators, algorithms and technology which enables it to predict market movements.
The main benefit of using a trading robot is that it helps you save time and energy on complex market analysis. The software carries out calculations accurately and it is more precise in terms of detecting movements and changes taking place in the markets. Moreover, it will never let you trade based on emotions because it is programmed to make predictions based on pre-set parameters.
The Bottom Line
It is not necessary that you only consider short term benefits of trading in the bitcoin markets. If you buy bitcoins today, you can sell it at a later date when its value has gone up. The digital currency markets are highly volatile and if you are looking at only the short term benefits, then you will get hurt in the process. However, if you invest in the future of the blockchain technology, then you will be successful in the run.