Bitcoin trader pros and cons
Dec 03, · Bitcoin has seen dramatic run-ups in price followed by some painful crashes but has consistently retained a significant portion of its previous gains every time it . Sep 19, · Disadvantages of Trading Bitcoin and Cryptos The price spike on Bitcoin, Litecoin, Ether and other minor cryptocurrencies is attracting loads of attention – not only from more experienced traders but also from people totally new to financial markets. Oct 02, · Pros and Cons of Trading Bitcoin Guest Author / October 2, October 2, Trading bitcoin today is more than just a trend, as it comes with numerous benefits that will make the bitcoin lifestyle worth it for anyone who has decided to follow that path.
Bitcoin trader pros and consThe Pros and Cons of Bitcoin: a Merchant’s View
The system has been designed to protect your privacy and although your public transactions will be recorded, you remain anonymous. A bitcoin user can rather be identified via public keys, numerical codes, and pseudonymous usernames. Bitcoin could be a quick and lucrative means of making money and certain people take advantage of the highs and lows.
They buy when the price is low and sell when the price is high to make more returns. Interestingly, anyone can hop on this, as it does not require any form of expertise or special knowledge. There is also a lesser risk of your money being manipulated. You could send bitcoin to another user and they will get it within a few minutes. However, traders might still want to consider following cryptocurrencies as they compete for investments and attention in the global arena. We mentioned 8 points that make trading Bitcoin and cryptocurrencies less attractive when compared to Forex and CFD markets.
But there are some advantages too. Here is our list of pros but feel free to add your own ideas in the comment section. Bitcoin has managed to overcome multiple hurdles in its short but lively history.
Bitcoin is being frequently used a method for payment and more vendors and stores are accepting Bitcoin. Are you worried about government debt, central bank quantitative easing, and the value of fiat currencies?
It should be noted that such an insurance should never be a large part of any portfolio in our view. A hedge is more a way to mitigate risk of an economic recession or even an economic downturn which is when other assets become less valuable. You can hedge with the help of markets. Bitcoin is becoming more accepted as a payment method and as a storage of value.
Shops are offering the ability to make Bitcoin payments and there is an increase in Bitcoin services. The media is also covering Bitcoin in more detail as the price grows and the application of the currency increases.
Although people from the West might not see it, the cryptocurrencies do actually solve problems for citizens of many countries. Here are some issues that could stimulate demand for cryptocurrencies:. The first 3 of these points are less problematic for Europe, Japan, and the US who for instance have not seen high levels of inflation for a while but altcoins could be a guard against inflation.
These countries also have free movement of capital. Here is an example of our chart analysis. You can catch the momentum by joining our telegram group for free. We provide signals and analysis for cryptos, fx, stocks and commodities. It is still too early to tell but could big players like banks and even countries secretly be buying cryptos and Bitcoin to hedge their assets and reduce their vulnerability on the US Dollar and Euro? It remains impossible to impossible to answer for sure but one could speculate whether this trend is occuring.
Russia, China, oil exporting nations, and maybe even Australia could perhaps be using cryptocurrencies and the mining process to reduce their reliance and dependency on the US Dollar. You can also trade cryptos , including altcoins, with one of our supported providers. Big players could be looking to reduce their exposure to the US and the EU perhaps due to the large debt that the West has gathered in recent decades.
The Great Recession of pushed the budgets of the governments and the balance sheets of the central banks to the max. Big exporters like China and oil exporting nations like Russia and Saudi Arabia might want to be less dependent on the US Dollar and other western currencies. They might also doubt their ability to pay back the debt via inflation and weak economic growth. Ultimately all traders need to take their own decision but the above mentioned points hopefully help sort out some of the pros and cons.
The answer will also depend on your risk appetite and your method of trading:. SWAT course and trading system. This site uses Akismet to reduce spam. Learn how your comment data is processed. Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website.
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Disadvantages of Trading Bitcoin and Cryptos The price spike on Bitcoin, Litecoin, Ether and other minor cryptocurrencies is attracting loads of attention — not only from more experienced traders but also from people totally new to financial markets.
Number 1: Little Historical Support and Resistance Levels Technical analysis of any chart composes of three major components: Trend and momentum: indicates direction and strength of that direction. Support and resistance: indicates potential stopping points of that direction. Patterns in general, chart and wave patterns: provides information about the market psychology.
Number 3: Price Volatility Volatility is good for trading because the price movements up and down offer trading opportunities for traders.
Image: Bitcoin price movement on weekly chart. Number 4: Market Sentiment is Not Fixed Sure, the uptrend on Bitcoin and other cryptos altcoins seems like it has no limits and will never stop. Number 6: Conflict with Central Banks and Economic Growth Bitcoin and other cryptocurrencies are non-centralized and not created by any central bank. It can be super simple to set up, and the low transaction fees and zero fraud risk make the digital currency an attractive option.
The good things Zero fraud Fraud is currently a massive headache when accepting payments online. The bad things Volatility, part 1.
Volatility, part 2. Is it worth the plunge? Read more about Disclosure The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies.
CoinDesk is an independent operating subsidiary of Digital Currency Group , which invests in cryptocurrencies and blockchain startups. Year in Review Ripple Effect. What is undefined?