With the trading industry that is already so unpredictable, cryptocurrencies and Bitcoin are further making the situation tougher, as cryptocurrencies are simply unpredictable and erratic. The unpredictability of Bitcoin can be made out from the fact that after falling down to almost 20,000 dollars in 2017, Bitcoin is back with a bang. The current value of 1 Bitcoin is approximately 8509.21 dollars.
So, you can understand by this that how uncertain is the value of Bitcoin. No one really knows, what is next for Bitcoin, but some tips can be really helpful in trading Bitcoin smartly, so that you can avoid losses.
So, here in this article I will discuss some of best Bitcoin trading tips that you must use, keeping in mind the unstable nature of Bitcoin.
Don’t assume anything by price rise in Bitcoin
Don’t get all excited and invest all your hard earned money if you see the price of Bitcoin going in uptrend. It is a foolish step. Bitcoin is a volatile currency by nature and you never know that what is in store next. You may witness a high rise in value of Bitcoin the one second, but do not be fooled by it, because it make take a steep downfall, leading to crashing of the market. So, instead of being carried away by hike in value of Bitcoin, always keep in mind the volatile nature of cryptocurrency, before taking a decision.
Keep keen eye on trends
It is very difficult to predict the price of Bitcoin. It can never actually be pointed out that when the value of Bitcoin will change. Bitcoin being a decentralized currency, no bank or a company statement can lead to change in the value of cryptocurrency. However, you can determine the change in value of Bitcoin by keeping a sharp eye on market trends, with the help of The Bitcoin Storm Software.
You can also do the same with mining reward halving. In this trend, as the reward of successful mining decreases, the supply will also lower eventually and thus it will be difficult to earn Bitcoin. However, if in such a scenario, the demand of Bitcoin increases, the value of Bitcoin will hike up. Infact Bitcoin has seen interesting variation in price of Bitcoin during Bitcoin halving in year 2013 and 2017 respectively. With the next halving lined up for May 2020, it will be very interesting to see what is in store for Bitcoin and the traders this year.
Stay informed always
You cannot be a good Bitcoin trader, if you do not keep a keen eye on the market trends and have no idea what is happening in the market! Apart from that also keep keen information on which company is happily embracing Bitcoin and which company is condemning it. All these activities have a huge impact on the value of Bitcoin.
Long-term Bitcoin trading is not always the option