Here at Trading tickers we talk about Futures and sometimes options. What about this new craze they call Bitcoin. its been around for years now and yet now the craze has become so large that everyone and their Grandma are hopping on board. But what makes it so crazy is its lack of valuation. Could it be that it’s gone up so much that we can compare it to the Tulip era of the 1600s? Regardless its here to stay as well as the thousands of other coins they have available.
But how can we treat it and how can we profit from it when it goes up day in and day out and doesn’t operate like a typical investment vehicle. The CBOE launched futures with the ticker symbol xbt. Some brokerage houses such as TD Ameritrade now offer the ability to trade the Bitcoin futures. The Bitcoin Futures were created to create a sense of fairness in trading both on the long side and the short side. Now this can be comforting for the retail investor and also allow institutional traders to trade Bitcoin on a more swing or day trade basis. However this can cause issues especially since the rise of Bitcoin has been so rapid and it doesn’t seem to have an end in sight.
So as a retail Trader how do we trade Bitcoin or any other coin for that matter? The answer is not easy. It comes down to valuation and ability to integrate the technology. What does that mean? The answer is simple. The technology behind Bitcoin is called blockchain. The technology that can revolutionize Financial transactions all across the world. The issue that I have with Bitcoin or any other coin for that matter is that it has become a craze more so then an investment opportunity. If you got in the beginning it was probably the best investment you have ever made or ever will make in your life. Now Bitcoin could easily go to 40,000 or 50,000 or down to 0. The issue with Bitcoin is the fact that this technology is a bit slower than some of the other coins available. So in essence the ability to stomach huge volatile moves and risk Capital that a lot of people don’t have I would not recommend jumping into cryptocurrencies.
However if you have the time and resources to research these coins and actually see if they have a value that can be used in the future that is efficient, transparent and usefully able to be integrated into the mainstream then it is still an early time to invest in those particular coins. Personally I have in the last few months started researching cryptocurrency Trading. The technology has been around for a few years, yet now all eyes are on cryptocurrency as a useful technology and as a craze. So for somebody that wants to invest in cryptocurrencies now looking for a huge spike it is a great time to do so because everybody is jumping on board and pushing these coins by triple-digits per week.
All in all my opinion is somewhat neutral because the money is there to be made but you have to know what you’re doing and you have to get in at the right time. So when they say buy the dip and sell the rip, this is the perfect opportunity to put that plan into action. I will continue to monitor Bitcoin as well as other coins and find out the best way to trade them and profit from them and keep more articles coming from my results. So if any of you are trading Bitcoin or the other coins feel free to comment below. Happy Trading.