Now that we have covered most of the “free options” to earn your first [pieces of a] Bitcoin in these past few guides, it’s time to take a closer look at the things you can do once you have gotten your hands on a bit of digital currency. Most of the things we will cover might seem obvious to the experienced Bitcoin user, but do keep in mind this is aimed at novice BTC users.
The Trading Game: Bitcoin
Most of our readers will have heard of the volatile nature of Bitcoin prices. As is the trend with any currency ever created, there is a distinct possibility of having prices go up or down by quite some margin. In fact, if you invest enough money, day trading can become a full-time job that can either mean big profit, or massive losses. As is always the golden rule, don’t invest more money than you can afford to lose, as this is not a get-rich-quick scheme.
One of the main differences between Bitcoin and any other currency we have in existence today is that, as Bitcoin is not controlled by a bank or government, it’s price swings are far more volatile. This can result in price changes ranging anywhere from US$1 per day to up to US$50 per day or more. Multiply that by a nice amount of Bitcoin you may be holding and you can see how large amounts of money can be gained or lost.
It has to be said however that Bitcoin’s price swings are becoming less and less frequent on such a large scale. While there are still occasional dips and peaks regarding the price per Bitcoin, the value seems to hover in the same range for weeks on end mostly. At the time of publication, that price range is somewhere around the US$230 mark.
The main reason people like to speculate on the Bitcoin price is because not that long ago, the price per Bitcoin exploded from US$400 ish to US$1160 over the course of 72 hours. Needless to say, a lot of early investors became Bitcoin millionaires, and in a few cases even billionaires, overnight; a part of Bitcoin history mainstream media love to refer to, any chance they get.
However, ever since that bubble burst and the price per BTC dropped back to below US$300, as of late, a lot of people mistakenly believe it is now too late to get involved with Bitcoin. In fact, there has never been a more opportune time than now to invest in Bitcoin or digital currency. Keep in mind it will always hold a certain risk – just like any other investment.
Especially with Bitcoin prices being very low for the time being – as in, it’s a great price if you plan to enter the Bitcoin trading game at this point in time – there is a lot of room for a natural price increase. But that doesn’t mean that a group of investors can not shift the price upwards or downwards at any given time.
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