Bitcoin is chosen by traders, but not by investors

As you know, commodities have not been able to become a full-fledged part of the asset class.
Shares and bonds were significantly ahead of raw materials in popularity when it came to long-term investments. However, commodities were in demand by traders due to the relatively high volatility.

Since prices tend to change rapidly in a short period of time, traders have the opportunity to earn good money on the very volatility of commodities. However, such a rapid increase in prices does not attract long-term investors who are ready to receive a small but stable profit over many years.

Ardent fans of investing in gold have been insisting for many years that people invest in gold, operating with global economic and financial fears and a long history of using gold as the most valuable and liquid commodity. However, time showed that gold relative to most asset classes was not the best choice. A similar situation with silver.

The world’s No. 1 cryptocurrency – bitcoin – is traded on a variety of exchanges, and in the financial market bitcoin is already known for its “wild” volatility. Unlike classical markets, the cryptocurrency market is never closed, which allows traders and investors to buy and sell bitcoins around the clock 7 days a week. The volatility of the most popular virtual currency and constantly open exchanges make bitcoin an almost ideal tool for traders who are interested in short-term profit taking.

Every day on such exchanges as Bittrex, Kraken, Poloniex and others, bitcoins are traded for 1 billion US dollars. The other day, bitcoin reached its next high of $ 4,400, and its total capitalization reached $ 70 billion. If we compare Bitcoin with other crypto-currencies, then it has a much larger daily volume and, as a result, significantly greater volatility, which makes bitcoin the ideal virtual currency for “short” traders.

Despite the fact that bitcoin is much more volatile than altcoins, its total volume of trade is still quite low, which allows large traders to make attempts to manipulate its course. Since most bitcoin exchanges are not regulated, for example SEC, traders should be extremely careful and careful.

Trade bitcoin, exactly as stocks and goods, can be useful if the trader is focused on key growth or decline trends.

 James Fawcett, a payment analyst at Morgan Stanley, said that bitcoin owners are extremely reluctant to use virtual currencies because of the increase in their value, which is the main proof that bitcoin is a real asset and not just a payment instrument that opponents try to inspire us Crypto-currencies and supporters of traditional assets.

 If you are accustomed to draw on the opinions of experts who prophesy the most popular crypto currency substantial growth, you should consider buying bitcoin

source: mt5

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