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Investing and Trading in Bitcoins

When the bitcoin currency was launched in 2009, one bitcoin was worth a tenth of a cent. Right now one bitcoin equals about $2,500. Some people predict that the value will go on rising so that it could hit $10,000 – others are even more optimistic, predicting a value in excess of $700,000.

If they are right, then buying bitcoins and holding them for years could prove a sound investment strategy.

But bitcoins are very volatile and the value of the coins can be affected by high profile events. For example, in December 2013, China halted all bitcoin transactions, which caused the price to drop by about 50%. In 2015 the EU declared that bitcoin trades would not be subject to VAT. That caused the value to jump 16%.

The price can also fluctuate wildly on a daily basis.

All this volatility is good news to traders, giving opportunities to buy the troughs and sell the peaks, whether as a day trader or by holding for longer periods – just like you would when you trade foreign exchanges.

You can also trade bitcoins against other cryptocurrencies such as ethereum and litecoin.

To invest or trade in bitcoins or other cryptocurrencies, you need to set up a bitcoin wallet and get an account with an exchange. Then you can use ADVFN’s cryptocurrency pages to keep an eye on the price fluctuations: https://uk.advfn.com/cryptocurrency.

Read more about bitcoin wallets here.

Read about bitcoin exchanges here.

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