Bitcoin trading is attracting divergent opinions; while some feel that the honeymoon phase is over, others still find it attractive enough to put their funds into it. But, before you start trading this crypto coin, it is important to understand whether the decision is justified or not.
Why you should trade the Bitcoin:
- To start with, it is wrong to assume that just because the Bitcoin price experienced a sharp fall earlier, prices will not go up again. The current prices are similar to what the BTC prices were in November 2017 when the crash occurred but this soon paved the way for resurgence of prices. It is believed that after the “halving” of the Bitcoins in this year, the prices will rise again.
- A big factor why Bitcoin prices fell in 2018 was because countries like South Korea, India, and Malta began adopting many policies that went against it; even the US expressed valid concerns. However, things have changed now and it is being hoped that crypto regulations will ensure better adoption of crypto coins. The SEC has expressed its interest in the Bitcoin calling it a welcome development. With more reputed institutions showing their faith in the Bitcoin, companies and investors will start investing and trading more.
- With the advent of better crypto regulations there will be bigger businesses investing in the Bitcoin. So, there is going to be an influx of influential companies and corporate and this will be accompanied by an increase in tools and regulations for digital assets. In short, the overall public opinion is slowly becoming more favorable towards Bitcoin trading.
- With traditional assets remaining vulnerable to security threats and the US making interest rates more stringent, people are seeking an alternative currency.
- Any smart investor knows the value of having a diversified portfolio. Cryptocurrencies are being looked upon as a distinct form of investment altogether and with traditional assets becoming more and more risky, investing in such digital currencies may be a viable option. These currencies are not typically tethered to mainstream markets and have therefore helped countries like Zimbabwe or Venezuela, experiencing hyper inflation due to political problems, from crashing.
- Research shows that the crypto space is all set to expand further. The blockchain technology is being regarded as one of the most groundbreaking technologies expected to make its presence felt across various industries. So, as someone considering Bitcoin trading, this is a good enough excuse to get your feet wet.
- The Lightning Network is also making an entry into the Bitcoin world and promises greater utility. This is another big reason to consider getting into Bitcoin trading.
- Since Bitcoin has a finite supply, its prices are likely to go up. There can only be a total of 21 million Bitcoins and this explains why its value will keep growing. When demands for Bitcoin go up, the value will go up automatically. So, as a crypto trader, you can hope to reap good profits by trading in Bitcoins now.