Why Do People Trade Bitcoin?
Bitcoin, is a virtual currency, which is also known as a “cryptocurrency”. The Bitcoin is not controlled or issued by a central authority, country, government or bank, yet people across the globe trade it at several thousand dollars per bitcoin.
Throughout its history, the price of bitcoin has reacted to a wide range of events, from China’s devaluation of the Yuan to Greek capital controls. General economic uncertainty and panic has driven some of Bitcoin’s past price increases. This growing economic uncertainty in conjunction with the facts that there is a set limit of bitcoin in existence and public interest/investment massively increasing, has sent bitcoins price past the all-time high of gold in 2017 for the first time ever.
CA Trade Pro offers a variety of trading programs/courses – You can trade yourself, including the options of trading Bitcoin Futures, HFT trading and the all-encompassing accounts. Whichever trading strategies you decide to use, our experienced brokers are here to guide you to make your experience with bitcoin easier and more profitable than ever.
CA Trade Pro team which is composed of people with extensive background in investment banking, and computer engineering, at the crossroads of technological innovation and global financial leadership and trust.
Where is the value?
For some people, the easiest way to understand bitcoin is to refer to it as “digital gold” – that is, useful and valued (digital) goods that are in a limited supply on a global network, accessible and verifiable, that trades 24/7 and 365 days a year.
You may have heard a friend say “Bitcoin is not based on anything, how could it have value?”
This is actually an excellent question, as the answer is key to understanding the brilliance behind the underlying technology, the blockchain network.
The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value. The bitcoin is 100% public and any the underlying code is open source being third party verifiable as a legitimate network. This is the reason why people trust bitcoin to communally store billions upon billions of dollars’ worth of value.
This network is based on a state of public consensus. It acts in this way as a self-auditing ecosystem of a digital value on what is often referred to as a mining network where the remaining limited untouched bitcoins are “mined.” The network reconciles every transaction in ten-minute intervals. Each group of these transactions is referred to as a “block.” If you would like to learn more about the underlying technologies behind cryptocurrencies, there is a behemoth amount of information available online.
Since bitcoins rise to fame, there have been additional valuable cryptocurrencies that have been created such as Ethereum or Monero as well as many others. The main difference between these crypto coins is their underlying blockchain technologies.
Altogether, the crypto market capitalisation is roughly estimated in $100 billion dollars, with many coins surging 100-200% in the past few years alone.
How can I make money trading bitcoin?
There are two ways to generate profits with Bitcoins:
Buying bitcoins and selling them 24/7, or use them as an investment tool.
If you invest enough to buy and sell Bitcoins in a serious way, you can create a high profit on a consistent basis. If you are the type of investor that is interested in a serious amount of profit then choose one of the available Bitcoin trading strategies that we offer such as High Frequency Trading (HFT) account opportunities.
What if I just want to buy something with Bitcoin?
If you are looking to purchase something online with bitcoin then Bitstamp is an excellent place to start. It is the world’s largest bitcoin exchange and has an excellent reputation. However, Bitstamp is an exchange rather than a Bitcoin trading platform.
You can buy and sell bitcoins quickly and easily, and begin to learn about the way the market tends to react. You can place orders in real time (buying and selling at the ‘spot’ price) and set limit orders, which execute when the price reaches a certain level. However, Bitstamp is not designed for advanced day trading. We recommend several exchanges for these purposes.