Bitcoin is making headlines around the world. These basic rules to make money from Bitcoin trading are unbeatable.
Bitcoin is the digital currency (or cryptocurrency) that can be extremely profitable for professional or even beginners. It is because market is new & highly fragmented with huge spreads.
Additionally, arbitrage & margin trading is also available for trading Bitcoins. This generates huge opportunity for traders & investors to earn money from Bitcoin price fluctuations.
According to a post published in Fortune, more people are now searching online for how to buy Bitcoin than they are searching for how to buy gold.
It is due to the fact that gold has appreciated this year by 11% only. However, Bitcoin has gone up this year by more than 600%.
Additionally, every Bitcoin bubble is found to create hype in the financial world. This puts Bitcoin’s name in the news headlines.
More the media attention it draws, more the people become interested. As a result, big Wall Street investors are also pouring their money into this virtual currency.
Finally, the Bitcoin value appreciates more until the hype fades. Therefore, we need to trade Bitcoin by following certain rules. Here are 20 basic rules or guidelines to earn money from Bitcoin trading:
[You can also watch an exciting video on this post from GetUpWise channel on YouTube.]
(1) Buying Bitcoin Is More Comparable To Gambling Than Investing
It is one of the most basic rules to make money from Bitcoin trading. Bitcoin is an innovative payment network and a new kind of digital money. It works without the intervention of a central repository or single administrator.
Bitcoin value is fluctuating wildly across the world due to speculations. This price fluctuation has created a number of opportunities to invest in them.
People are going crazy to buy them at any stage without any prior knowledge just to make money out of it. Analysts are found to be divided on the issue whether Bitcoin value is sustainable in the long run or not.
According to the views of Bank of Canada Governor Stephen Poloz, buying Bitcoin means buying risk, which makes it closer to gambling than investing. He also acknowledged that demand of digital cash could grow over time.
Policy makers are keenly studying options for central banks to provide the same for online transactions. However, Bitcon doesn’t have any inherent value, & its adoption is still uncertain. Finally, you don’t have much control over the ultimate outcome.
On the other hand, a well investment is something that is always done after performing proper research on the investment option. Thus, the concept of buying Bitcoin blindly is comparable to gambling rather than investing.
- Bitcoin Trading Rules: Pixabay