The Bitcoin Exchange Trading Features

Today, interest in cryptocurrencies is enormous. Their prices are rising so rapidly that it threatens the stability of global finance. Governments in many countries rightly fear that cryptocurrencies will damage the stability of national monetary systems. In contrast to governments, more and more global corporations—both service providers and manufacturers—are using bitcoin and altcoins to hedge risky assets from other markets. Cryptocurrencies offer excellent opportunities for diversifying investments.

The reliability of bitcoin is questionable because of its virtual nature. However, the market imperfection allows earning huge sums from the cryptocurrency trade even to those who do not believe in it. Now exchange operators use digital technologies: usage of this method has made bitcoin a very profitable currency.

Trading techniques

In the conditions of exchange trading, there are two ways to manipulate bitcoin:

1. Open accounts in BTC.
2. Trade BTC.

In the first case, trading operations can be conducted in any global currency, and the result of the transaction—loss or profit—is calculated in bitcoins. Further, the profitability of the transaction will depend on the current price of BTC.

In the second case, there is no intermediary currency: only bitcoin is traded, and the profitability of the transaction depends on the price at the moment. You have to focus on the price of BTC, which most exchanges don’t display. To trade cryptocurrency, you will have to look for special tabs on exchange websites that reflect price fluctuations and brokers who specialise in such transactions. An unpleasant aspect is the difference in BTC prices between different brokers, which encourages abuse. At the same time, traders have the opportunity to resort to arbitrators in search of justice.

Judging from the current situation, the cryptocurrency prospects are very bright. The overall growth, despite the short-term fluctuations, indicates a good prospect of long-term profitability.

Another appealing feature is the possibility of round-the-clock trading: unlike traditional trading, bitcoin transactions are conducted continuously. This is great, but at the same time, it is dangerous to trade bitcoin on non-working (non-trading) days, so it is worth exercising caution on weekends.

Reading and analysing

The profitability of cryptocurrency deals depends on the trader’s analytical skills. They need to continuously monitor the news to detect:

• Large funds buying up large amounts of bitcoin. This is a signal that you should also buy BTC.
• New government laws prohibiting bitcoin trading in countries with strong economies. This is a signal that you should get rid of BTC.

Such unexpected information appearing on non-trading days creates volatility that can damage the profitability of transactions.

In summary, we note that basic analysis, monitoring the current situation in economies and on exchanges, as well as taking into account the possibility of short-term fluctuations will help avoid risks. It is safer to conduct trading operations with bitcoin over longer intervals. However, bitcoin is an excellent choice as a diversification tool, as it has a low correlation with other currencies.