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What are the Trading Opportunities for Bitcoin?

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Bitcoin prices have run the gauntlet of extreme volatility in the last five years. According to Investopedia, the market has risen by 900%, which has attracted the attention of serious traders. It’s becoming increasingly obvious that bitcoin is no flash in the pan. Bitcoin has gone from a Dark Web currency to one accepted in many mainstream outlets.

Predicting the Future of Bitcoin

There are several ways to trade bitcoin. Firstly, you can buy bitcoin and hope it goes up in value before you sell. If it does, you have made a profit. If not, you lose. The second way to make money trading on bitcoin is to speculate on the fluctuations in bitcoin value, rather than actually owning some of the cryptocurrency.

Anyone with the foresight to invest £1,000 in bitcoin back in 2010 would be worth a staggering £14.5 million. The price of bitcoin has dropped rather dramatically from the dizzy heights of December 2017, but most analysts believe it has leveled out now. This means there are excellent trading opportunities for those with a strong stomach for risk.

Spread Betting and CFDs

The most common way to speculate on bitcoin is via spread betting or CFDs. Spread betting lets you speculate on whether the bitcoin market will rise or fall. CFDs is a contract for difference between buyer and seller, so you are speculating on the underlying market price of bitcoin. Both trading strategies are leveraged. You can bet a small amount but gain exposure to a much larger market. If you make a smart trade, it is possible to make a lot of money, but if you get it wrong, your losses will be much higher than your initial trade.

Bitcoin Options Trading

The other option you have is bitcoin option trading. The downside is that bitcoin options are expensive, as bitcoin is extremely volatile. Options prices are subject to Implied Volatility. The higher IV goes, the costlier a bitcoin option becomes. Acceptance of bitcoin trading is growing. Last year, the Chicago Mercantile Exchange announced it planned to launch bitcoin futures in late 2017; these are now live.

For an experienced trader, making a profit is not too difficult. It’s a case of following the news and being alive to market fluctuations and their underlying causes. For example, back in February, Business Insider reported that bitcoin was trading at a premium in South Korea compared to the US, which represented a golden opportunity for traders to buy bitcoin in the US and sell it in South Korea.

Currency Exchanges Vs. Online Trading Platforms

Bitcoin trading is commonly conducted via cryptocurrency exchanges, but this is not necessarily a smart strategy for traders. Bitcoin exchanges are unregulated and there have been some high-profile hacks in recent years. Your money is not safe, even when it’s stored in a secure crypto wallet. Using an online trading platform is much safer. You can execute trades immediately and potentially make a profit even when the markets are in reverse.

It is important to be aware that bitcoin is volatile, so if you decide to trade in the crypto markets, be prepared for a rocky ride.

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

Bitcoin

Investors Beware: Another Large Bitcoin Crash Might Be Coming

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The crypto prices have surged quite high in the last few months. Of course, their progress is nowhere near the one seen in 2017, but they appear to be getting there, one day at the time. However, things might not be as simple as that, and according to recent performance — it is more than possible that a major Bitcoin crash is incoming.

The fact is that cryptos saw a massive amount of growth in a very short period. Bitcoin itself more than doubled its price in only two months. Now, the rally is starting to crash in on itself, and the coin is already about $1,000 lower than last week. If such development does come to pass, a lot of people will experience quite large losses, although experienced investors might find some opportunities, and leverage in order to enhance their holdings’ long-term value.

For example, Bitcoin dominance is expected to crash very quickly, which will work in favor of quite a lot of altcoins. While this does not seem to be the best time to invest in BTC, altcoins are another story, and diversifying a portfolio now might end up being very profitable in days to come.

Bitcoin behavior mirrors the pre-bear market situation

The crash that analysts are predicting right now comes as a direct consequence of all the hype that has been building up in…

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Bitcoin

The Bitcoin Revolution: Everything You Need To Know To Take Profits

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Bitcoin is soaring high in the cryptomarket once again, and experts are expecting a return of the bullish trend of 2017. The current Bitcoin price is $7,615 as of 23 May 6:56 AM UTC. This significant jump comes just six months after the Bitcoin price plummeted to a low of $3150 in December 2018. Since then, Bitcoin has experienced steady growth and gain in the market. However, in the last 30 days, the Bitcoin price peaked to $8,320.82, its highest price ever. This phenomenal jump occurred in a span of only 10 days breaking the Bitcoin record so far of significant gains made in short time frames. This positive growth has led to experts forecasting the Bitcoin price to hit the $20,000 mark by the end of this year.

Since entering the market almost 11 years ago, Bitcoin is still at the top of the global cryptocurrencies list. The current circulating supply of Bitcoin is at unbelievable 17,708,875 BTC. The market trend of the Bitcoin price has remained positive even when the currency did not maintain an uptrend. Cryptocurrency researchers believe that Bitcoin has the potential to grow up to a high of USD 50,000 within the next two years.

How to Profit from Bitcoin…

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Altcoins

3 Altcoins That Are Outperforming Bitcoin and Will Likely Face Consequences

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The crypto market is going through a period of massive recovery in the past few months, which has caused the investors’ optimism to return. While all eyes are on Bitcoin (BTC), as usual, the largest coin seems to be struggling with a major resistance level at $8,000 at the moment. While this level was breached a few times now, every breach resulted in a correction.

At the time of writing, BTC is approaching this level yet again, with its current price being at $7,985,79, and rising further. The price managed to grow by 1.06% in the last 24 hours, and will undoubtedly hit $8,000 in a matter of hours, if not sooner.

However, while Bitcoin continues to remain volatile and struggles with waves of growth and decline, there are some altcoins that are not following its path. Of course, most of them are performing in pretty much the same manner as BTC, as they always had. But, a few coins have actually managed to outperform Bitcoin in recent months.

While optimists believe that this might lead to decoupling from Bitcoin — something that only Binance Coin (BNB) managed to pull off up to this point — it is likely that there will be consequences for these cryptos. This likely means that a price drop for these specific coins awaits somewhere in the near future, as outperforming BTC…

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