The cryptocurrency craze hit the market in 2017 and is showing no signs of slowing down. Millions of people are getting interested in crypto — Bitcoin especially — day by day, both around the world and on Olymp Trade. Let’s take a closer look at this cryptocurrency and discuss what Bitcoin trading is and how it works.
- What is Bitcoin?
- How does Bitcoin work?
- Why should you trade Bitcoin?
- What’s the price of Bitcoin?
- How to trade Bitcoin on Olymp Trade
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Explanations and definitions of terms.
What is Bitcoin?
Created by the pseudonymous Satoshi Nakamoto, Bitcoin is a digital currency that operates free of any central point of control such as a government or bank. It is the preeminent cryptocurrency, after which all others — in both price and inception — follow. Its perk of borderless, near-instant transactions is offset by its unpredictable and volatile price action that can differ in the thousands of dollars from one day to the next.
How does Bitcoin work?
Bitcoin is totally different from the currency we use as cash. Completely digital, it is not printed or produced by a bank. All Bitcoin transactions are sent over a peer-to-peer network rather than to a central authority (such as a bank) before reaching the receiver. All operations are verified by a network of connected computers and stored on a ledger called a blockchain. Unlike an endlessly-printable currency that is produced and issued by a federal bank, there is a limit to how much Bitcoin currently exists and how much will exist. Based on the idea of the gold standard, Bitcoin is still being mined today, with the final Bitcoin expected to be mined in 120 years from now. Today, 19.1 million Bitcoin tokens are in circulation and no more than 21 million Bitcoin will ever exist, which has opened discussions as to whether the token is a store of value, like gold.
Why should you trade Bitcoin?
All traders are enthusiastic about investing money where there is profit to be made in a short period of time. Despite the risks, Bitcoin’s high volatility is conducive to significant profit, even when simply buying the dips.
What’s the price of Bitcoin?
As we mentioned earlier, Bitcoin is volatile. At the time of writing, Bitcoin’s price is around $21,000; this time last year, it was over $45,000. While the Bitcoin price does not rely on any single country’s economy, there are factors that can influence it, and others that may not despite expectations otherwise. Since the Bitcoin supply is limited to 21 million, there is a closer correlation to supply and demand affecting its price. The more people buy Bitcoin, the more demand there is for it. Conversely, when few people buy Bitcoin, demand decreases, thus reducing the price.
How to trade Bitcoin on Olymp Trade
There are two ways to trade Bitcoin on Olymp Trade.
1️⃣ Fixed time trading
Fixed Time Trades mode is available on Olymp Trade’s platform. In this mode, you can make trades for a fixed time and receive profit from a correct forecast about the stock, currency and prices. You can trade Bitcoin by seeing the buy and sell orders via technical indicators and oscillators. If the forecast is correct, you get up to 92% of the return. Otherwise, you risk losing the full amount.
2️⃣ Forex trading
You can also trade Bitcoin using the Forex mode on Olymp Trade. In this mode, you can apply a multiplier of up to 10, so if you open an Up trade and the price goes according to your prediction, you get 10 times the profit. Forex trading is also beneficial because there is a smaller chance of losing trades. There are also the Stop Loss and Take Profit options on the platform to better safeguard your earnings.
Before trading Bitcoin, you need to analyze its price action and the market conditions, study money management, the Martingale system, support and resistance level points, good trade entries and time duration. If you master these, you’ll be a force to be reckoned with in the crypto market.
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Risk warning: The contents of this article do not constitute investment advice, and you bear sole responsibility for your trading activity and/or trading results.
A monetary system in which a currency is pegged to a fixed amount of gold.
The process of creating new blocks (and thus, crypto coins) on a blockchain by using computing power to solve or “hash” a complex mathematical problem.
An asset that retains its utility, value and purchasing power, no matter the market conditions.