How to make money trading Bitcoin
Today is 9 August, 2017. Recently, bitcoin is on the rise and the value is at the all time high of $3417. Many people are getting into bitcoin and many are guessing how high would it goes. I want to discuss with you how to make money trading bitcoin.
Before I start, I need to tell you I am not a financial adviser and I don’t have any background in trading. If you take my word and buy bitcoin, it is you own decision and it has nothing to do with me. I am not liable for any loss of gain that you incurred.
Some people say that currently, it is a bubble and it will burst. When it fall, many people will lose money. I want to show you one video.
He is correct that it will crash someday, but you have to realize that bitcoin has crashed few times previously. After these drops, it has continue to go up after that. Let me show you some data.
- July, 2011 – it went up from 1.00 in April to 31.00
- Dec, 2011 – it crashed down to 2.00
- April, 2013 – it went up to 266.00
- June, 2013 – it crashed down to 70.00
- Nov, 2013 – it went up to 1242.00
- Dec, 2013 – it crashed down to 600.00
- Jan, 2017 – it went up to 1150.00
- Jan, 2017 – it crashed down to 750.00
- current – value at over 3,000
If you want to learn more about Bitcoin, you can visit Wikipedia.org – History of Bitcoin.
You can see the gain before the crash.
1st time – 1 to 31 (31 times)
2nd time – 31 to 266 (8 times)
3rd time – 266 to 1242 (5 times)
4th time – 1000 to ? (if we predict less than 5 times, so now it is at 3 times value. Would it crash soon?)
Could we use the past to predict the future? Sometimes we can and sometimes cannot. We cannot just use mathematics to calculate, because there are other outside factors which could affect the outcome.
Previously, there are less people who are interested in bitcoin and the market is smaller. Since then, the market has grow exponentially. Not to mention that some countries has legalized bitcoin. Therefore, in my own opinion the value of bitcoin still has room to grow.
If you compare it to the past housing bubble, dot com bubble, gold market bubble. It is still early days, until the day you see bitcoin go up to $10,000 per coin. This is just my own opinion. Therefore, I believe it is good time to ride the wave to the top. There are lots of money to be made, but make sure that you are not too greedy and watch out for the crash.
The only way to protect yourself from losing money is to take profit along the way, minimize your position while it is still rising. Because no one could predict exactly when it will top out and start to fall.