What Is Bitcoin?
Bitcoin is a digital asset, designed to secure different types of transactions. Created in 2009, it was the first decentralized cryptocurrency. They can be traded for other currencies, products, services. Why are bitcoin and other cryptocurrencies so tempting for the traders? Well, that's quite simple really - it's because of the big movements in their price that occurs regularly.
In 2011, the value of one bitcoin rose from about $0.30 cent to $32 before returning to $2 (still 7 times higher than the first price). At the end of 2012 and going to 2013 due to some economic events such as the Cypriot financial crisis, the bitcoin price began to rise, reaching a high level of $266. After the crisis, there was a predictable drop of the price and there were many people smart enough to invest in buying bitcoins and eventually made a substantial amount of profit by selling them for a much better price. By November 2013 one bitcoin was traded for $1,242 – the highest rate ever at that time!
Obviously, it is simple math. Let’s assume you are trading different assets in 2012. You have a personal broker that you have good business communication with and an easy platform where to place your trades. You are given trustworthy information about the potential of these bitcoins and you decide to invest in buying, for example, five of them. In 2012 this investment would have cost you around $300 altogether. Next year 2013 you can sell your bitcoins for $6,000. And if you are patient enough and keep your possessions for a longer period of time waiting for better and better circumstances, therefore if you are willing to sell your 5 bitcoins around the recent peaks, the price you would have received would have been over $30,000! Amount three hundred times bigger than the amount you invested in the beginning.
These numbers can easily be verified and you don’t have to be an experienced trader to make the conclusion that online trading is giving some amazing opportunities. You just need to have the motivation to take advantage of them.
If you have enjoyed reading this article please make sure you check out some of our other articles on bitcoin and other cryptocurrencies here. And don't forget to give it a like and share it with anyone else you think it may be of interest too.