NetNewsLedger – Bitcoin – a means of financial investment
When it comes to money and financial assets, it’s only a thin line between them. Even though some people classify money as a special type of financial asset, this, in turn, earns little or no interest. Other types of financial assets have huge interest or return on investment (ROI). Take for example, when you buy stocks and bonds you expect to receive interest or receive dividend payments, you may even go so far as to sell the stocks at a very high price in the future.
Even though Bitcoin was developed for the purpose of serving as an international currency, there have been changes over the year and the increase in demand for bitcoin has made it an investment medium for many people. Today, Bitcoin has become a high financial investment asset that can be used for different transactions.
Bitcoin, which is characterized as a medium of financial investment, has attracted the interest of many investors and at the same time it has given way to financial losses. While it can be argued that the line between financial assets and money is very thin, the actions of investors have generally revealed the role that assets play in the economy.
Really the Bitcoin price chart has been really inconsistent over the years, sometimes we experience a big price spike and sometimes it is followed by a few drastic crashes but checking through this chart it has been studied that it systematically kept a large part of its gains with each fall. Since Bitcoin’s first introduction, it has been the first digital asset to launch the current cryptocurrency ecosystem. For some time now, investors have seen its future as a possible one and a replacement for the physical silver we currently have.
Today, the hype around Bitcoin has essentially kept it as a financial investment instead of using it as a means of payment for goods and services. You can start earning with Bitcoin immediately. Jannet Yellen, who is a former Federal Reserve, said Bitcoin is “not a stable store of value and is not legal tender.” It is a highly speculative asset ”.
The incredible benefits that Bitcoin has brought to the market cannot be overstated. On the one hand, it is a safe ecosystem for your peer-to-peer money transactions. There are few or no middlemen when it comes to Bitcoin transactions. That is why it is cost effective and also very fast. You can send millions of Bitcoin within minutes and the cost of sending is very low compared to using fiat money. Bitcoin has made international payments so easy in ways previously unimaginable.
If you are an investor looking to invest in bitcoin in the capital markets, you should do so with Bitcoin Trader. Using Bitcoin Trader provides investors with certain advantages that make investing in bitcoin a more reliable option. On the one hand, their system guarantees a transparent business environment thanks to DLT technology. In addition, they use trading algorithms that implement HFT trading techniques that generate profits even at the slightest movement of the market.
When you invest in Bitcoin, you can approach it from two different scenarios:
Short positions on Bitcoin
When there is a Bitcoin bubble (which means a rise in the price of bitcoin followed by a fall in the price), investors can bet on a fall in the value of bitcoin. With this, they can decide to sell bitcoin for a certain price, and after a while, they buy it for less than the sell price. Take, for example, if you buy a bitcoin worth $ 1,000 and later sell it at the same rate, and wait for the bitcoin to decrease in value before buying it back. You would buy it at a much lower price, thus making more profit.
But you need to be careful when taking this approach, there is a strong possibility that the market will move against it which could result in a loss of money. Before you get started, as an investor, you should have a thorough understanding of leverage and margin calls.
Long positions on Bitcoin
With this strategy, investors want a less immediate return. They buy bitcoin and wait for a price increase to end before selling it. This process can be approached in many ways, one of which relies on the volatility of the cryptocurrency for a high rate of return, if the market moves in favor of the investor. Several bitcoin trading sites like Bitcoin Trader now exist. These platforms provided leveraged trading. Bitcoin Trader has a trading program that automatically performs bitcoin trading.
The decision to make Bitcoin a means of financial investment comes down to your risk appetite. The price could drop dramatically, go against you as an investor, and a single online hack or hard drive failure can wipe out your Bitcoin stash without compensation or refund. You must deal with a reliable trader!