Bitcoin Investment… does this virtual financial tool brings profits?

Bitcoin is cryptocurrency payment system in decentralized format. It was publicly released in 2009.

Bitcoin gained its popularity started in 2013 and gained over 3x appreciation from 2011 to 2012. Venture capital firms and investors around the world continue to bet on this cryptocurrency. 

The simplest way to invest in Bitcoin is to outright buy some. Many established trading firms provide buying and selling services.

While you are start thinking to invest in Bitcoin, you might start asking how Bitcoin is valued. Bitcoin is measured against fiat currency, such as American Dollars (BTCUSD), Chinese Yuan (BTCCNY) or Euro (BTCEUR). It appears superficially similar to any symbol traded on foreign exchange markets.

The factors that generally determine Bitcoin’s price is supply and demand. Inspired by the rarity of gold, Bitcoin was designed to have a fixed supply of 21 million coins, over half of which have already been produced. Miners currently produce around 3600 bitcoins a day, some portion of which sold to cover electricity and other business expenses. The daily power cost of all mining is estimated to around $500K. Dividing the total by the current BTCUSD price provides an approximation of the minimum number of bitcoins which miners supply to markets daily.

Bitcoin supply is inflating at around 4% annually from mining activities. The rate will drop sharply  in 2020 when the next reward halving occurs. That Bitcoin’s price is rising despite such high inflation indicates extremely strong demand. Buyers absorb the thousands of coins offered by miners and other seller everyday.

Bitcoin wallet can be a lot safer than a bank account at times. Greece imposed strict capital controls in 2015, Greeks were subjected to a daily withdrawal limit of 60 EUR. Bitcoin demonstrated its value as money without central control. Soon after Greek crisis, China began to devalue the Yuan. Chinese savers turned to Bitcoin to protect their accumulated wealth.

It worths to note that Bitcoin is an experimental project, a highly risky asset. There are many negative influencers of price, ie. legislative risk of a major government banning or strictly regulating Bitcoin business. The emergence of a credible competitor, perhaps with the backing of major central banks could see Bitcoin loosing its market share in the future.

Well, Bitcoin is ultimately worth what people will buy and sell it for. This is often as much a matter of human psychology as economic calculation. Don’t allow your emotions to dictate your actions in the market; this is best achieved by determining a strategy and sticking to it.

If your aim is to accumulate Bitcoin, a good method is to set aside a fixed, affordable sum every month to buy bitcoins, no matter the price. Over time, this strategy (known as Dollar-cost averaging), will allow you to accumulate bitcoins at a decent average price without the stress of trying to predict the sometimes wild gyrations of Bitcoin’s price.

Forex – a Stranger compared to Stock Market?

The trading mechanics in the forex market is quite similar to stocks in that prices fluctuate based on supply and demand, bid and asking prices. The major differences between them is the number of trading alternatives available. Forex market has very few compared to the thousands found in the stock market. The majority of forex traders focus their efforts on several different currency pairs, which include EUR/USD, USD/JPY, GBP/USD, USD/CHF and commodity pairs, USD/CAD, AUD/USD, NZD/USD. This makes currency trading easier to follow instead of having to pick between thousands of stocks to find the best value, the only thing forex traders need to do is to keep up to date on the economic and political news of these countries.

One of the Broker that we highly recommend to start your journey in Forex investment is ForexTime. ForexTime or FXTM, is a Forex broker that was launched in 2011. The company’s focus from the beginning was to provide high-quality services and a trading environment to its customers. FXTM is an international CFD and forex broker, regulated by the UK FCA, CySEC of Cyprus and the Mauritian FSC.

FXTM established itself as a leading broker for emerging and frontier markets. Traders get upgraded MT4/MT5 trading platforms, a proprietary copy trading service, and quality research and education. Forextime also delivers one of the best commission-based Forex pricing environments.

As account opening only takes a short time, and customer support is helpful and reliable, feel free to try FXTM.

In a declining stock market, it is only with extreme ingenuity and luck that an investor can make profit. It can be difficult to short-sell in the US stock market because of strict rules and regulations. On the other hand, forex offers the opportunity to profit in both rising and declining markets easily because with every trade, you are buying and selling at the same time, and short-selling is, therefore, a part of every trade. Forex market is so liquid, traders are not required to wait for an uptick before they are allowed to enter into a short position, as in the rule in the stock market.

As the liquidity of the forex market is high, margins are low and leverage is hight. It is just not possible to find such low margin rates in the stock market, most margin traders in the stock market need at least half of the value of their investment available in their margin accounts, whereas forex traders need as little as few percents. Commissions in the stock market tend to be much higher than in the forex market. Traditional stock brokers ask for commission fees on top of the fees that have to be paid to the exchange. While forex brokers take only the spread as their fee for each trade.

As for investors like you and me, day trading in stocks and forex share a lot of the same stresses – being constantly plugged in, watching news and price action and so on.

When people refer to Forex trading being riskier or more difficult than stock trading, they usually mean that it is more difficult than buying and holding stocks (apples to oranges comparison).

Forex trading might involve more time sensitive decisions rather than a single analysis and then making a long-term investment. However, this is a bit untrue as fundamental forex traders may keep a position for weeks or months, checking it rarely. They have this luxury because they usually use less margin than forex day traders.

In summary, forex trading has better opportunity being 24/5, simplicity as the limited number of major currency pairs, higher liquidity over stock markets, and if you are in the margin game, the potential is way higher than a stock market.

Again, advertising my favorite forex investment tool that gained me thousandssss. You could consider or continue using your own tools if you already have one.

Strategies to Make your Money Works for You

Forex – the term on its own sounds complicated, some people directly relates it to risks and dangerous. While, in reality, just like any other forms of investment, it could be dangerous only if you have little knowledge.

You can simply be a long term investor, or you can sit and watch the market every day looking at your profit growing. There are enough strategies out there to meet any investment goal.

Simple forex trading system is following the daily or weekly trend. Review the charts and find a trend that seems well supported and get in. Set a reasonable stop and plan out a target. You will find this strategy easy as you don’t need to watch the market constantly, you can trade when you have time.

You can also choose to do day trading as forex market is always moving 24 hours a day, 6 days a week. Forex market is always moving at least a little. You can pick and choose your time depending on what you like to trade. Most day trading strategies revolve around forex technical analysis, if you have sharp eye and a plan, you can catch it and take some profit from it.

Some may have more old-fashioned approach to investment. You may prefer to invest in something you understand better rather than looking for a signal on their chart. Fundamental forex trading will work best for this category. You follow the news for several countries and play the countries with strengthening economic trends, against the ones with weakening economic trends. You look for how things shape up over the long term while you shall learn to understand the economic reports and compare them to other countries.

While Forex may sound complicated, anyone will have the ability to learn with patience and from mistake. Skills can definitely gained over time, it takes some persistence. It may frustrate some people in the beginning, you need to step back, keep an eye on the big picture and trade small, at least at the beginning.

I started my trading from this site, it is incredibly easy to use and they provide bonus as an encouragement. Feel free to explore XM trading here.