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Should we really trade bitcoins?

Published by DwayneB in the blog DwayneB's blog. Views: 127

If you are not living outside of earth, you may know that now there has been a recent trend of bitcoin in the investment world. Many people are now buying bitcoins and waiting for the price to get sky high. We remember when the first bitcoin can be bought, it was only for a couple of hundred dollars and within years it had reached the roof of the chart. Now a bitcoin is priced at £8,500 and the price is increasing exponentially. This price of bitcoin is making this currency and the potential investment of the traders and people are thinking to trade their money in bitcoins in Forex. Though many economists are saying that this bitcoin can all be Ponzi scheme, we should consider all the positive sides of trading with bitcoins in Forex and also think if this can be risky for your career. This article will tell you if you can invest with bitcoin in Forex and if you can invest, how you should invest.

Before we dig deep, you need to understand that bitcoins can also be traded with the professional brokerage firm. Many professional traders in the United Kingdom are now trading the bitcoin just like they trade the Forex majors. Some of you might say why the expert traders are trading bitcoins instead of currency pairs. The answer is simple. We all know the recent trend of bitcoin is extremely bullish. And in the investment world, everyone loves to trade in favor of the long-term trend. Even the new traders in the United Kingdom have already made a decent amount of money just by trading the bitcoins. They simply traded in favor of the long-term trend to secure their profit. But this doesn’t mean you will not do technical analysis on your mt4 platform. You need to have precise knowledge about technical field since it will help you to find the best possible trading spot.

Trading vs. investing
Investing in bitcoin is relatively expensive than trading. Since the price of bitcoin is extremely high in today’s world it’s better to trade them just like other currency pairs. Try to do the precise technical analysis in your mt4 platform and place your trade with managed risk. The majority of the pro traders in the United Kingdom always take less than 5% risk while investing their money in this cryptocurrency. So make sure that you are always considering the risk factor while trading the bitcoins.

High risk
We do not say that investing in Forex with bitcoin is prohibited but it is risky. If you look at the prices of bitcoins over the last years, you will find that the rise of price is lighting fast. The value of every currency fluctuates that follows the normal rate of growth but bitcoin seems to void all of these rules. When you trade the market with bitcoin, you will find that all the prices are rising and you may think your investment is a good investment in Forex. You will never know if the currency pairs changes and as this currency is volatile, successful traders like to trade with the minor and major currency pairs.

Chances of Ponzi schemes
There are chances that all of these things about bitcoin are nothing but a Ponzi scheme. And they are being traded on the market and with sky-high prices, you can lose all of your investment if the prices go down. There had been lots of Ponzi schemes in Forex over the years and many of them shook the investment world.

If you want to invest
There are always some traders who will invest their money with bitcoins in Forex and this part is for them. If you want to invest your money with bitcoin, only trade with the small amount of bitcoin. This way you will not lose all of your money if your trade is lost in Forex and you will have some money in your account.
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