Bitcoin trading enables traders to speculate on whether the price of bitcoin will rise or fall in value, without the need of taking ownership of the bitcoin.
With the continuing rise in Bitcoin popularity, more and more people are interested in selling and buying cryptocurrencies. But still many people don’t have the proper information and wonder what exactly are the advantages of trading Bitcoin and other cryptocurrencies?
So, suppose you are part of one of the many aspiring groups of crypto-traders out there. In that case, it may be in your best interest to gather all the information you are able to when it comes to the benefits of trading bitcoin and cryptocurrencies before starting out in a sudden rush.
After all, it is very important to do your research before entering any new activity or in this case financial field, especially when new to trading.
Why Trade Bitcoin?
Want to know how you can benefit by trading Bitcoin? It can do so in many different ways. To be sure that your interest will meet the best info possible, we will carefully explain to you the benefits of trading Bitcoin.
The Benefits of Bitcoin Trading Include:
1. High volatility
2. 24-hour global market
3. Low Fees
4. Independence
5. Faster account opening
6. Easy to understand the market movement
7. Availability in any crypto exchange
1. High Volatility
The perceived store of value versus fiat currencies is a major reason why Bitcoin may fluctuate against fiat currencies. Bitcoin is similar to gold. Although gold miners can keep mining more gold, Bitcoin is regulated by a developer’s design decision of its core technology to limit its production to a maximum of 21 million BTC.
This is a crucial aspect of Bitcoin, which uses its high volatility to lure in online traders worldwide. This cryptocurrency displays movements often larger than 3% within a single day. At times when volatility is relatively high, these movements are known to have exceeded even 10%.
Read Also: Bitcoin Price Predictions
2. 24-hour global market
The Bitcoin market and every other cryptocurrency market are open 24/7 across a growing number of exchanges. Unlike traditional financial systems that only work on a fixed schedule, cryptocurrencies strive on the idea that there’s no restriction on the time of its usage. This means that traders throughout the world are able to use this fact to their advantage regarding Bitcoin trading whenever they please (after regular work hours, during holidays or during the weekend).
3. Low fees
Nobody likes to pay fees. Low fees are actually one of the best advantages when it comes to trading Bitcoin. Fees that are associated with exchanges that use Bitcoin are way lower when compared to traditional exchange systems. As an added bonus, Bitcoin deposits and withdrawals are usually completed in just a few hours as far as the processing stage is concerned, regardless of where you live at the time.
4. Independence
Bitcoin works entirely in a peer-to-peer manner. The blockchain is free as far as control is concerned since it is decentralized. In general, Bitcoin’s price doesn't correlate with the price of stocks, commodities, currency pairs or bonds. Bitcoin traders don’t regard external news flow which impacts other market segments, as having any importance to them.
So basically if you have knowledge in trading and can read the price data on charts well, it will be enough for you to trade and earn profits. This is the reason why Bitcoin is suitable for trading based only on price action setups.
5. Faster account opening
Bitcoin is stored in coin wallets as it can't technically be stored anywhere else. This type of software is well-known for its ease of use and reliability while also maintaining high-level security and opening speed. Also, opening an exchange account to trade Bitcoin could be fast in some platforms like eToro, for example. eToro is an easy to use platform where you can trade Bitcoin and other cryptocurrencies.
6. Easy to understand the market movement
Bitcoin is scarce, and its price is demand-driven. As mentioned above 21 million bitcoins can be in circulation at maximum. There are currently 18 million bitcoins in circulation, so the closer we get to the 21 million mark, the more the price of Bitcoin is likely to rise.
This is an indication that the more demand there is for Bitcoin, the more its price will increase. So basically as many crypto analysts say, Bitcoin price can only go up. It might have fluctuations here and there as it is volatile, but it could only increase in the long term.
Read Also: Six Reasons Why Bitcoin Has Intrinsic Value
7.Bitcoin is available in any crypto exchange
There are many cryptocurrency exchanges out there that you can pick to trade Bitcoin. Since Bitcoin is the first cryptocurrency to be released and the most reputable one, you can trade it in any crypto exchange. eToro is the best social trading platform in the world. You can easily start trading Bitcoin in eToro.
Should I Buy Or Trade Bitcoin?
If you’re interested in getting started with trading Bitcoin, you should do your research on whether you should buy or trade, depending on which best suits your needs. If you want to understand Bitcoin better, here’s a detailed article about Bitcoin.
You might be interested in trading Bitcoin if ...
- You accept to pay taxes on any gained profits.
- You can pay for the asset upfront.
- You want to own Bitcoin.
- You don’t get bothered by introductory limits or maximum deposits.
- You are patient to wait for an exchange account before buying Bitcoin.
- You have no problems with fees for deposits or withdrawals.
- You want to experience the excitement of trading Bitcoin.
You might be interested in buying Bitcoin if…
- You don’t mind paying the full value of the asset upfront.
- You don’t mind paying capital gains tax on any profits.
- Waiting for an exchange account before buying or selling doesn’t pose a problem for you.
- Maximum deposits or introductory limits don’t get you discouraged.
- Paying additional fees for deposits or withdrawals isn’t a problem for you.
- You want to be part of the huge community of Bitcoin HODLers.
- You want to own a digital currency.
eToro – Best Broker to Trade Bitcoin
eToro have proven themselves trustworthy within the Crypto industry over many years – we recommend you try them out.
Virtual currencies are highly volatile. Your capital is at risk
Key Points
- Bitcoin is undoubtedly the most popular cryptocurrency, and its price movement has an influential impact on the rest of the crypto market.
- Since Bitcoin is known as a form of currency that exists in the digital domain, this makes it possible for anyone to send and receive it anywhere around the globe.
- Bitcoin is volatile by its nature, which makes it a good trading asset.
- The Bitcoin market is opened 24 hours a day, seven days a week.
- Bitcoin is entirely independent from traditional financial assets, as it is decentralized.
- Bitcoin possesses a built-in scarcity feature. This means that the number of bitcoins that will ever exist is only 21 million.
- Understanding the Bitcoin market is easy, as its price is demand-driven.
- Since Bitcoin is the most reputable cryptocurrency, any crypto exchange supports it.