Bitcoin trading was hot topic for the press again recently.
Bitcoin was about to make a comeback… $20000 to be reached within the next month… blah blah blah. You’ve heard it all before.
What was interesting[ at least for me] was that the price finally broke past the 10000 barrier again. Then the bulls pushed the price up to 14000 and now the bears all the way back down again to 10000.
It’s a prime example of greed [everyone jumping on the bandwagon] and fear [everybody scared of losing too much money] this is what is causing much of the volatility.
This volatility can make it tricky to trade Bitcoin successfully, as the fast price swings make it a heavily emotional experience… especially for new traders.
If you are looking to trade Bitcoin then my free Bitcoin trading strategy is a good place to start.
Also, IG launched their Crypto index last month. This is actually quite a good way to trade Bitcoin/crypto’s without the huge price swings you get with Bitcoin.
Bitcoin basically controls all the other cryptos prices anyway.
Bitcoin Trading – Where Next ?
Well, the honest answer is that no one actually knows. How can we? There is very little price history to tell us anything concrete.
With traditional currencies, Indices and shares it is still far easier to speculate price movement in my opinion. We can’t say that anything is certain, but we can be a lot more confident in our opinions.
We are in such a new era with Crypto’s that anything is possible.
I said in my private members area a couple of weeks ago that you need to tread carefully when trading crypto’s. Anything can send the price steaming one way or another for no apparent reason.
I still think that over time Bitcoin will reach unbelievable highs… £50000 + is seriously possible… and why not? Especially as the currency becomes more stable and also goes mainstream.
Plus, there is only a limited number of Bitcoin that can be mined so I think this will also start to affect price eventually… but that’s going to be around the year 2140 apparently.
Overall I think that Bitcoin and crypto’s are very interesting. But personally for me and a trading angle it is not something I feel is stable enough to get into seriously yet.