Cryptocurrency is the new digital currency that is taking away the market. People are making a wild expedition into this new market of cryptocurrency. This currency is also known as bitcoins.
People are trading bitcoin online just like stocks in the stock exchange. There is a guarantee of profit or loss. With few tactics and experience, one can make a good amount of money out of these digital coins. There are many people who have earned millions and billions out of them but most of them incur only losses. This scenario of the market is generally because people hardly observe facts and figure and rush behind the crowd. The crowd contains the genius but it also contains fools as well. Proper market research and an extensive amount of research is required to get optimum profit. You cannot expect to hit millions in your first go. If you are a newbie in this market you must begin slow and steady.
The concept of bitcoins is quite easy. It is an online trading market that trades bitcoins just like any other stocks. There are two types of people buyers and sellers just like any other market. The buyer tries their best to buy the bitcoins at the minimum price. On the other hand, the sellers who already have the bitcoins try to sell their coins at a price above which it was bought. Thus it is similar to any other market. The sellers wait for the market to go up and for the prices to rise so that they can sell their coins at higher prices.
On the other hand, they wait for the market to crash so that they can buy more bitcoins at low prices. Thus the buyers buy all the cheaper coins and the market remains stagnant with bitcoins of higher cost. Finally, when there is no buyer to buy the bitcoins at higher prices the sellers have to dump their bitcoins that leads to losses. This is the overall story of bitcoin.
No, we will see to certain points that must be taken care of while investing in bitcoins and when to invest in bitcoins:
1) Research and Analysis
May it be stock market or cryptocurrency people have got the habit of following the crowd. They feel safe to do what everyone is doing. But what they don’t understand is the fact that more demand leads to a greater rise in the prices of bitcoins which finally gets dumped due to lack of buyers. This is the general scenario for most people. Very few people know the potential of this digital currency. They invest the money as if they are not investing but gambling. These wild expeditions are the reason why most of the people call the stock market and bitcoin trading gambling. But you see that’s actually not the case with bitcoins. You just need to be careful and do your homework before investing in any bitcoin.
There are thousands of bitcoins in the market. While investing one should know why he is investing in that particular bitcoin and why not others. The investor at first must go through the company prospectus and past records. The shifts and curves of that particular bitcoin must be analyzed. One must know what the market conditions were when the price of the Bitcoin rose and dropped. There are various other accountability factors that must be taken care of when investing in bitcoin.
2)The right time to invest
The market of Bitcoin cannot be tamed and one must not do so. The difference between bitcoin and the stocks is that they do not get influenced by the economic and political activity of any particular country. It is independent of all these factors and stands apart from these. When taking decisions regarding bitcoin one must understand this fact and simply not invest or sell incurring to the economic and political situations of any particular country. While dealing with bitcoins one must think on a global scale.
3) To risk it or play safe
Before investing in bitcoin everyone asks this question to him. The answer to this question depends upon your knowledge and experience in this field. You can’t grow big until you risk it but if you do then lay there a ninety per cent chance that you will suffer from a huge loss. So is it better to play it safe? If yes then its why bitcoin you can invest in mutual funds if you need security. So what’s the answer? The answer is that you cannot risk it until you know the rules of the game. If you are a newbie then it is advisable to play safe and remain on the safer side as much as possible. Make a small profit but aim for high.
Keep accumulating data about the field in which you are going to invest. Keep analyzing the curves and shifts of the bitcoin market. Once you know it you are ready to come out of your comfort zone. Make the move as per your data and make money.
4)Believe in figures
As far as the stock market and bitcoin market is concerned it has been a fashion to follow the crowd. Even the experts of the market commit this mistake and have to dump it at the end. Without knowing the exact numbers you can’t make it. This means that until you know the statistical analysis of the bitcoin you are investing in, you cannot expect much out of it. The past records are an easy way to know the past records of the company which will help you to figure out your future growth. Most of the people invest like they are gambling but this is not the case.
Solely because anyone can get access to bitcoin trading doesn’t mean that any lad can make money out of it. You need years of experience or a lot of luck to make money. But the fact remains that luck doesn’t favour you always but knowledge can.
This article aims at providing a rough overview of cryptocurrency or bitcoin trading. Investment in such fields must be done wisely and obviously not lime gambling. Before investing proper analysis and past records should be kept in the account. Patience and right decision at the right time are the key to money in this field of digital currency.