As bitcoin price goes up to almost USD$20,000 and you might think “Is it too late to buy bitcoin?”, “Would it go up any further?”
You are in luck today as bitcoin drops almost $7,000 from it’s all time high to $13,000. It is a sale day and it is a good time to get into the market. As most of us would know if you have trade shares before that share price goes up and down all the time. More so for the coin market as a 50% drop is not uncommon.
The fact is the price of bitcoin always regain it’s value and more after the “crash” or “correction”. Whatever name you want to call it. You can look back at the history of the price of bitcoin. The reason that the price drops so much is because big whales are manipulating the market.
It is never too late to buy bitcoin, especially now. Hold you current holding and buy more. It is still early days as bitcoin just started to go mainstream. The market capitalization increased from around $140 billion to current $546 billion. Two of the biggest exchanges in USA, Cboe Futures Exchange and Chicago Mercantile Exchange (CME) have started trading bitcoin since 18 Dec, 2017. More exchanges will follow worldwide.
It is still early days and if we use the scale from 1 to 100, from start to when the coin market fully matures. I would say it is about 5 at this moment. There will be more and more money getting into the coin market as time goes by.
If you think $13,000 dollar bitcoin is too expensive for you then you can buy and invest in altcoins. There are many good investment at this moment. Besides, you don’t have to buy one bitcoin, you can buy a fraction of a bitcoin. If bitcoin price increase, you will still gain the same percentage whether you hold one bitcoin or a portion of a bitcoin. Some people predict bitcoin price could go up to $100,000 or some said $1 million dollars. We would never know until it becomes reality. The matter of fact is bitcoin will still increase in price short term.
If you are going to trade the market, I suggest you brush up on share trading techniques. You don’t want to lose all your hard earn money. Remember, buy low sell high.
If you are in Australia and you can buy or trade Bitcoin and Altcoins in Coinspot.com using Australian Dollars. Before you can start buying coins, you need to setup an account first. If you want to see a review of Coinspot, click here.
The coins currently available at Coinspot are, Bitcoin, Ethereum, Bitcoin Cash, IOTA, Ripple, Litecoin, Dash, Bitcoin Gold, Monero, NEM, Cardano, Ethereum Classic, Stellar Lumens, NEO, EOS, Lisk, Stratis, Zcash, Qtum, OmiseGO, Waves, Tether USD, Nxt, Ardor, BitShares, Bytecoin, Steem, Salt, Ark, Vertcoin, Decred, Komodo, Augur, Dogecoin, Golem, Siacoin, PIVX, MaidSafeCoin, TenX, Walton, Power Ledger, Basic Attention, Kyber, Factom, Byteball Bytes, Raiden Network, Zcoin, GAS, DigiByte, Monaco, GameCredits, FunFair, Nexus, Verge, Ox, Ethos, Civic, Metal, Peercoin, AdEx, Reddcoin, Enigma, Rise, LBRY Credits and Safe Exchange Coin. It is quite an extensive list and it has been growing within the few months when I first joined.
There are currently more than 1300 coins on the cryptocurrency market. If there is a coin that you want to buy but not available at Coinspot, then you have to join another exchange. To find out where you can buy that coin, you have to visit coinmarketcap.com.
I will use IOTA as an example. When you are in coinmarketcap you will see the screen as below.
You have to click the word “Markets” to see which exchange sell this coin. Then you will see a list of exchanges under Source. IOTA is available at Bitfinex and you can visit their website and sign-up an account.
I use another exchange called “Bittrex”. Bittrex is a good and popular exchange and I have been trading with them for more than six months. Below is a video to show you how to trade in Bittrex.
The different between Bittrex and Coinspot is different.
There are few good reasons that I want to use Bittrex. Here is the comparisons.
The commission is lower than Coinspot. Coinspot will charge you 5% when you buy using Australia Dollars. When you are swapping between coins, the fee is 1%. For Bittrex the fee is lower, 0.25% per trade.
You use Australian Dollars when buying from Coinspot but you cannot use AUD on Bittrex. Bittrex only accept Bitcoins or Ethereum. If you really wants to use fiat dollars, they accept US Dollars and you will have to set up a fund transfer from your bank.
There are more coins which are available at Bittrex.
You cannot sell Bitcoin for dollars at Bittrex if you don’t have a cash account. So if you want to sell Bitcoin there are 2 alternatives.
Send your Bitcoin to Coinspot then exchange for AUD.
Buy Tether using your Bitcoin. Tether is a coin which links with USD, the exchange rate is very close to 1 to 1. Sometimes, you can sell Bitcoin when it rise in value to Tether and then buy it back with Tether when Bitcoin drops in value.
The main reason that you need to use Coinspot is you can buy and sell Bitcoin or other Altcoins with AUD and send the coins to Bittrex to trade.
There are three different markets at Bittrex.
Trading Bitcoin with other Altcoins.
Trading Ethereum with other Altcoins and Bitcoin.
Trading Tether with Bitcoin and other Altcoins.
Both Coinspot and Bittrex are trustworthy exchanges.
Trading Altcoins with Bitcoin is a very tricky business. You have to understand the relationship between the Dollars, Bitcoin and Altcoins. It is more straight forward to trade Altcoins with your dollars.
Here is good video which explains the relationship.
The other thing you need know when trading cryptocurrency is the market dynamic of the coin market. I learn these from hard experiences.
The coin market is very volatile. A change in value in any coin of up to 50% to 100% is common within a single day. If your are going to buy and hold, you will need to prepare for this swing and not panic when the value of your coin drops significantly.
When value of Bitcoin raises more than 10% and bullish, altcoins will drop in value. Especially when you are trading Bitcoin/Altcoin. Because some people will sell their altcoin and buy bitcoin.
When value of Bitcoin is trading sideway. Altcoins value will rise. Because most people who trade the coin market have no patience and will buy anything which rise in value. They are looking for huge gains and cannot bear to hold a coin which does nothing.
When Bitcoin have a huge correction after a bull run, then all altcoins will shot up in price.
Sometimes, every coin will drop in value when there are bad news. Like some time ago China said they will ban ICO and also said they will stop the Chinese exchanges from operation.
What I found for people who don’t know how to trade, the best strategy is to buy and hold just bitcoin. The future is bright.
At the moment when I am writing this post, the market capitalization of cryptocurrency has reached US$146 billion. The trading volume today is US$2.6 billion. More and more people are aware of cryptocurrency and jumping on the bandwagon. I can tell you, “Now is the best time to invest in cryptocurrency.”
The Japanese government recognized bitcoin as legal tender this April and now they want to endorse cryptocurrency exchange operators and register them as legitimate businesses.
This means that cryptocurrency will become more popular in Japan. I believe other countries will follow; since there are lots of money to be made. Many governments understand that bitcoin cannot be stopped. Therefore, instead of trying to stop it and it is better to work with it. They foresee bitcoin will bring more activities in the economy and bring more wealth to their citizen. As it has already happened, bitcoin mining has bring a lot of wealth to Chinese bitcoin miners as well as a lot of bitcoin investors.
Other countries like Russia also want to help their citizens to mine bitcoin by providing cheap electricity. It would be a good place for mining bitcoin because they don’t need any cooling fans since Russia is so cold.
Here are the reasons why I think now is the best time to invest in cryptocurrency.
Cryptocurrencies are still at the early stage, if you get in early you will make money.
I am actively trading the coin market and I can tell you that the gains are much better than trading shares. Gains of 30% or more in a single day is not uncommon. (But you must know what you are doing, you can make money quickly but you can also lose money quickly. My advice is to take some trading lessons before you start trading. The other alternative is to start very small and slowly increase your investment when you get better at this game.)
More countries and companies are starting to endorse and use bitcoin and other alt coins.
More people are getting to know about cryptocurrency and one day it will become main stream.
Although the price of bitcoin is going up and down daily in a volatile market, but it is still keeping the upward trend. Some people believe bitcoin will worth over US$100,000 to 1 million in a few years. These predictions could be over estimated, but if it increase in value by 5 to 10 times you will sure make some good money.
I had a discussion with one of my friends. He told me he don’t believe in bitcoin because it has no backing like our money. Do you think he is correct?
He is correct if he say it fifty years ago when money is back by gold. At that time you can take you money to the bank and ask them to give you the gold. Since 1971 President Nixon had taken the US dollars off the gold backing. You can read this article – Nixon Ends Convertibility of US Dollars to Gold.
Since then, every country’s money are not back by anything. They are only back by consumer confidence. If no one believe the value of the dollar you are holding in your hand, it is valueless. For example, if you have US$5 and you want to use it in a small town in Africa to buy an apple. The local people have never seen US Dollars before or they cannot exchange it to their own currency. Do you think they will accept your money?
The value of a currency depends on circulation, which is how many people are using it and how many people desire it. At this moment, many people desire bitcoin and many people are using it. The value of bitcoin will only goes up as more and more people believe in it.