What is Bitcoin Trading?
Bitcoin Trading is the process of buying Bitcoins from exchanges and selling them at a higher price than what it was bought for. You can only sell them at a higher price if the market value of Bitcoin rises. The difference between the Selling price and Cost Price is your profit. But, if the Bitcoin price keeps on falling, you suffer loss severely.
Bitcoin is currently the leading cryptocurrency that has helped millions of people to make profits while on the flip side a lot of people have lost their money in Bitcoin. Let’s dive into details.
Bitcoin Return Rates
If you see the Bitcoin returns from 2011 to 2018, you can find that in the year 2014, Bitcoin suffered a loss of 58%, and next in 2018, it again suffered a loss of 54%. The maximum profit was in 2013 of around 5507% increase in price rates while for the other years, the performance was moderate.
Is Bitcoin trading profitable?
Well, it is profitable if done correctly with the right strategies, softwares, and trading tools else it is extremely risky for investment. You can go for Bitcoin Profit trading software.
As per the Bitcoin Profit review, the software of this automated trading platform is 0.01 seconds ahead of the market and comes with 94% accuracy level to give you better return rates by lowering down the investment risks. The software auto trades 24/7 analyzing the crypto market on your behalf and comes with a guide to help you understand about Bitcoin trading and live price charts for better assistance.
Things to take care while trading Bitcoin Manually
Bitcoin trading is associated with high-risk factors. Hence, if you want to opt for manual trading instead of the automated softwares, follow these instructions sincerely:-
1) Research thoroughly about the crypto trading market and Bitcoin price patterns.
2) Analyze what times of the day have the maximum volatile market.
3) Stay updated with Bitcoin trading new 24/7 so that you don’t miss our any profitable opportunity.
4) Never use your life savings money in trading.
5) Don’t be greedy and back off after you have good returns.
6) Stay focused to know the best time for investment and don’t put all of your cash together. Have breakups and trade accordingly.
Risks associated with Bitcoin Trading
- New Technology
Bitcoin is still constantly developing and there are too many fluctuations in its performance to have a conclusion on where it will stand in the future.
- Risky investment
Bitcoin definitely has the potential to help people make millions of dollars but, due to its constantly shifting market, no specific investment rules, and zero physical collateral, it is pretty much risky as an investment.
- Frauds are higher
Since Bitcoin does not have any strict financial regulators, scammers and fake softwares are too many in the market to suffer you a huge financial loss instead of profits. Many people have lost their money in financial exchanges due to bugs in softwares.
4. Fluctuating market
Due to the constantly changing market of Bitcoin, as a trader, it is hard to predict whether your investment will have profitable returns or not.
Keeping the above scenarios in mind, before you put your money in Bitcoin trading make sure you research well about the crypto trading markets and softwares. It is only profitable when you know how to trade; when to trade and understand the crypto market well.