There is good news for Bitcoin fans! Over the last week, Bitcoin has seen some powerful price movements gaining in value more in 1 hour than over the last two months combined to over $5,000.
In the 1 hour of trading on April 4th alone, Bitcoin rallied from $4,150 soaring to $5,100. That’s a gain of $950!
That’s not all…
Many traders had been expecting Bitcoin to bounce back but did not expect it to trade above $5,000 during the following two months.
Bitcoin began its upward trend on February 7 rising from $3,350 to $3,800 then in March continued its climb to close at around $4,150 month end. In only 2 months from February to March Bitcoin prices gained $800.
Co-founder and head of data science at Boston-based Flipside said that people are warming up to the notion of buying Bitcoin, they are far more optimistic this week.
Many digital assets saw a significant spike in value this week. During the last two days, cryptocurrencies gained 10% to 60% with a valuation of $174 billion and during the last three weeks volume in global trade increased five-fold at $77 billion.
Enjoying a roller coaster ride, Bitcoin cash (BCH) so far is the market forerunner up well over 45% in the last 24 hours.
Looking back to April last year, Bitcoin rose from $6,700 souring to over $8,000 in a single move with it dropping back to lows. With the bear market winding down and crypto enthusiasts losing momentum, the current rally sees them increasingly confident that the next bull run is near.
What’s the real story?
Today, you will discover that many brokers are now offering cryptocurrency trading on their platforms. It has become the most talked about in the financial industry with Bitcoin the best performing currency in 2016 with approximately 15 billion Bitcoins in the markets.
Although there is a high risk because of its volatility, it has high potential to yield returns in a portfolio.
Here are some compelling reasons to trade cryptocurrencies:
Based on blockchain technology, cryptocurrencies is the currency of the future and cannot be falsified or have duplicated entries.
It has gained the attention of many financial institutions and bankers, receiving backing. Plus, it is transparent. Transactions are on a distributed ledge making it easy for you to keep track of transactions (blockchain technology).
Whilst there are a few Forex/CFDs brokers that offer cryptocurrency trading on their platforms, there is only a handful that offer excellent trading with optimal conditions.
We can’t emphasis enough the importance…
Trade with a regulated and authorized forex/CFD broker such as Plus500. They offer traders a wide variety of different cryptocurrencies to trades such as Bitcoin, Ethereum, Litecoin, EOS and more.
That’s not all…
Their advanced platform is intuitive and supports WebTrader for online trading that can be easily accessed from any web browser on your desktop, tablet and smartphone.
For some of their platforms, mo download is necessary. You are able to login easily, giving you the opportunity to trade from anywhere with all the advantages of their live trading account.
This includes advanced technical analysis tools, advanced management risk tools, live real time streaming and more.
Bitcoin and cryptocurrency CFDs trading
Buying a Bitcoin contract for a difference (CFD) will give you exposure to the price of Bitcoin where you can hold it for 2 minutes, when the price rises you sell the contract, repeating this process is called trading.
You don’t have the intention of using it as a currency, only on seeking price movement.
How can you actually use this?
Cryptocurrency trading is done in the same way as you would trade on the foreign exchange market. You only care about the price movement of the currency which can be bought and sold at fluctuating prices.
When trading CFDs there are 2 types of position you can take, Long or Short.
Taking a ‘long’ position means that you buy a contract that is linked to the price of Bitcoin. Assuming the price goes up, the contract increases in value, which you sell making a profit.
Going ‘short’ means that you are betting the price will fall in value resulting in your making a profit (if the price falls).
Here are another few useful terms that is used for trading and what they mean:
If you ‘Bid’ a price, it allows you to buy Bitcoin (or another crypto currency) at the price you are willing to pay for it, so when it reaches the desired price you buy it.
Placing a ‘limit order’ means that the order will only take affect when the price passes a certain point. E.g. if you have a limit order for Bitcoin at $4,000 your order will only execute when the price reaches $4,000.
The ‘ask’ price is what a seller is asking for an asset, meaning a seller of Bitcoin asks a price of say $4,000 (this is what he is billing so sell it for) and if you are willing to pay this amount you can buy it.
The ‘spread’ is the difference between the bid price and asking price. If the spread is high this would indicate there is a gap between buyers and sellers and the market isn’t moving. On the other hand I the spread is low, there is a lot of market activity with close competition on the price.
Placing a ‘stop loss’ on a position or order will stop your position when your position starts to lose a certain amount of value. For instance you can place a stop loss of 10% if your position starts to lose 9.99% in value it will close. This is a very useful tool that can protect you against volatility so that you have an exit strategy.
Margin trading enables you to trade more with your money, than you actually possess, you can make gains faster and you can also lose money faster.