Encrypted currencies such as Bitcoin, Litecoin or Ethereum are the recent highflyers in the markets. The largest advantage of the Bitcoin: It cannot be reproduced endlessly. There will be onle round about 21 Million Bitcoins worldwide due to the complex mining process. From now on you can trade Bitcoins on the eToro social trading platform!
When trading the Bitcoin it is mostly paired with the USD, known under the abbrevation of BTCUSD. It was invented in 2009 with the intention of creating an alternative currency that can’t be controlled by central banks or governments. Unlike other currencies the Bitcoin is monitored to the eigth decimal place because of its high volatility. As of now there are round about 16 million bitcoins floating around worldwide and the mining process is getting more and more difficult.
People became millionaire over night
Today the Bitcoins quotes at 2.553 Euros. When it was issued in 2009, a student from norway bought some bitcoins for 27 Euros just to see what happens. He forgot his wallet and when he heard in the news that this online currency was going through the roof he realized that he has almost become millionaire: His investment of 27 Euros was suddenly worth 800.000 Euros and the once poor student was suddenly able to buy a flat in one of the most expensive areas of oslo.
There seems to be no end in rising of demand for the Bitcoin. In fact, there are many ways by means of which you can make money with the Bicoin:
- Buy the Bitcoin itself and sell it higher,
- Help “mining” new Bitcoins by providing your computer power,
- Trade Bitcoin CFDs and profit from rising and falling prices.
Trading the Bitcoin
When trading the Bitcoin via CFDs on the eToro social trading network, you need to know that you are not buying the currency itself but a contract for difference, issued by eToro. The Bitcoin market is open 24 hours a day, even on weekends or holidays. The advantage of trading the Bitcoin with CFDs is obvious: When you buy a real Bitcoin you have to “hope” that its value increases over time to sell it higher. But the Bitcoin is a very volatile currency that doubles and halves its value almost over night. By means of CFDs you can either profit from rising or from falling prices.
Hedge your wallet
The next advantage is the hedging option: By means of CFDs you can hedge your “physical” Bitcoin Wallet by going Short on BTCUSD as soon as the Bitcoin Price starts to fall. Thus you can compensate your losses in your real wallet with profits in your Bitcoin CFDs.
Become a profitable Bitcoin investor
On the eToro social trading platform you can not only follow other traders and copy their funds but you can become a profitable Bitcoin Investor and have your investments copied by others. Thus you can make money in either directions and the more followers you attract the more you will earn with your Bitcoin trades.
Become a social trading guru today and sign up for the eToro trading network!