Marc Serafino
You may have heard how the fortunes have been made with Bitcoin? Yes, it’s true, and you can join this market as well. Don’t worry — it is still not too late, but you better hurry.
And if you need an extra push, we have prepared 5 reasons why it is a good idea to start trading Bitcoin today. Here’s what we’ve got…
1. Bitcoin is a truly global currency
Therefore, the price of a bitcoin is not directly related to the economy or policies of any single country. However, Bitcoin does react to local news but, usually, its price goes in the opposite direction of a local currency. For instance, when Brexit was “announced,” British Pound went down while the price of Bitcoin surged.
Something similar happened, though without an effect to the local currency, during the 2012-2013 Cypriot financial crisis when bitcoin purchases in Cyprus rose due to fears that savings accounts would be confiscated or taxed.
As a global currency, Bitcoin is not immune to daily politics; rather, it’s the world’s affairs that (typically) work to its benefit.
2. Bitcoin trades 24/7
There are no official Bitcoin exchanges; instead there are hundreds of exchanges around the world that operate round the clock. You can buy and sell bitcoins — or any other cryptocurrency for that matter — whenever you want.
Also because there is no one “official place” to trade Bitcoin, its price tends to vary, creating arbitrage opportunities for savvy traders who take advantage of this on a daily basis.
Generally speaking, most of the time exchanges stay within the same price range — all of them take cues from the same blockchain — but there is still space in that range for money-making opportunities.
3. Bitcoin is volatile
As of 2014, Bitcoin has volatility seven times greater than gold, eight times greater than the S&P 500, and 18 times greater than the U.S. dollar — according to the risk management expert and faculty member in the Finance Department at Boston University.
Some people find this scary, other see this as a great opportunity to make money. They want to catch it when the price is down and then sell it when it goes up. The general trend shows us that Bitcoin is appreciating in value, but that road has quite a few bumps; and these bumps are investment opportunities for savvy traders.
4. More and more people are joining in
And it’s not just people, an increasing number of companies have started accepting bitcoin payments. We are not talking about only about tech-savvy startups, but also about companies like Microsoft, Dell, Expedia, TigerDirect, Sacramento Kings, Newegg, Overstock.com, Time Inc, and many others.
This in turn ensures the overall liquidity of the market — i.e. making sure you can buy and sell Bitcoins at any time. It is good to have that option considering the mentioned volatility of Bitcoin (and, again, other cryptocurrencies).
Alas, just because Bitcoin or some other cryptocurrency is down one day that doesn’t mean it won’t rebound tomorrow. That’s just the “nature of the beast.”
5. It could be too late tomorrow
Finally, you may want to get into Bitcoin (and other cryptocurrencies) as soon as possible. You may have heard that people who bought bitcoins a year ago managed to get 10x returns. Luckily, it is not too late — in fact, we are still in the early days of Bitcoin, and you can jump in right now.
We are not sure what tomorrow brings, but we know that the longer you wait the lower your chances of higher returns get. So what are you waiting for — hop over to a Bitcoin exchange you like, sign-up and take it from there. Good luck!
