The overwhelming performance of Bitcoin as an investment had attracted investors over the past few years. No doubt, the founder of Bitcoin Satoshi Nakamoto and his fellows have the idea to introduce such a mode of payment, align to any central authority, and without bindings of a government agency. But soon it, due to its beneficial characters it became a business opportunity, just like stock exchange shares, Commodities,and the forex market. The main reason for its popularity among the investors of the world is its transactions without the mediation of the third party like government agencies and its crypto character means concealment of identity. The following are the advantages that make Bitcoin a profitable platform for an investor.
To trade with Bitcoins, you have to do the following.
- Open an account on Bitcoin Exchange.
- Verify your identity.
- Deposit money in your account.
- Open your first position in the exchange.
There are three types of trading in Bitcoins.
- Day Trading: This is the type of trading where multiple trades are conducted throughout the day, striving for short term price movements. Stocks versus Cryptocurrencies both have profit margin but this time, investment in Bitcoin is more profit generation resource for investors. Traders of this category spend a lot of time before their computers and close all of their trade when the day ends.
- Scalping: This is the style of trading where profit is earned on small price change. It is just like to collect pennies fallen before.The steamroller. In scalping, the focus is made on short-term trading. In this way, scalpers can earn dozens of trades in a day.
- Swing Trading: This Kind of traders make their efforts to take advantage of natural “swing“of the price cycle. Swing traders try to earn huge profits without constantly watching the computer. For Example, swing traders open their trading position and keep it open until they get the desired result.
The following are the advantages to invest in Bitcoins.
- Blockchain Technology
Blockchain technology is getting popularity more with time. It is speculated that it would be used in the banking sector and other financial institutions in the future. The transaction fee has decreased with time, the median transaction is lower as compared to the banking channel.
- Unbreachable Contract
The advantages of Bitcoins are not limited to the extent of transactions and its usability, the method of storage is also included in the advantages of bitcoins. Bitcoin wallets are unbreachable. Once the transaction materialized, there is no chance to breach it.