Categories Finance

Why Bitcoins Is The Best Cryptocurrency For Trading

Cryptocurrencies have performed outstandingly in 2019 and are continuously attracting new investors in 2020. If you have heard of one cryptocurrency, then it is bitcoin, and it is the biggest cryptocurrency. According to crypto exchange, it has a 50% share in 2020, and the oldest cryptocurrency still dominating the market.

The price of bitcoin changes every day; even after the price change, there are many investors. You can experience trading with different strategies. There are some essential aspects that you must be aware of buying bitcoins.

Why Is Bitcoin Gaining Attention?

You must be thinking why bitcoin has got so many investors? As the digital world is getting broader in the field of trading, the opportunities in trading are getting high, and the main reason is the investment in bitcoin.

Bitcoin is open to everyone and provides opportunities to an entirely new aspect of trading. The higher percentage of gaining ensures that you would get the best price after a successful strategy.

Why Invest in Bitcoin?

Are you curious to know what makes the bitcoin valuable? Bitcoins can be sent from anywhere in the world without any central authority. There is no government policy to buy a bitcoin.

The secret bitcoin trading strategies

The strategy depends upon your individual goals, taking a risk, available capital. Some proven strategies that are popular includes

  • HODLing– The plan that revolves around maintaining a long position on bitcoin in the hope that it increases the price over the long term.
  • Hedging– The gain or loss in one position is offset by changes to the value of the other positions
  • Trend Trading– The trend trading uses technical analysis to predict the direction of market momentum. It involves opening a position. It opens a position when you think the digital currency price will continue to move into the current direction or about to form a new trend.
  • Breakout trading strategy– It is the strategy that involves entering the market as early as possible in a trend, ready for the bitcoin price to breakout from the previous range.

Why is bitcoin best for trading in 2020?

In 2017, Bitcoin had an incredible year rewarding investors with a 1400 percent profit. According to the previous statistics that show that the bitcoins price fell in 2019. It is predicted that March 2020 will be the time when the bitcoins value will be increased. Few reasons in favor of buying bitcoins are

Ø  Bitcoin adoption is growing globally

Bitcoin adoption is increasing in the world. The fact is that the increased value of bitcoins users in 2020 is about 10 million wallets. Most of the trading in bitcoins is done in Argentina, Chile, Colombia, Peru, and Venezuela. The increase in faster and secure payments has attracted many people.

Ø  Regulations are improvising bitcoins

The lawmakers and financial regulators are keen on making similar rules for crypto as compared to equity and forex trading.

 A regulated crypto-asset market will invite more investors to participate. The mutual funds, insurance companies, and pension funds would join the race too.

  • Bitcoins developers are continuously innovating

The people who are developing the bitcoins, especially the altcoins community, are continuously working on improving the bitcoin network to boost its scalability, enhancing the features of privacy, enabling the other features such as smart contracts.