Bitcoin made a fairly unpublicized appearance in the financial sector. It was introduced in the year 2009 but over the years its profile has accelerated because more and more investors are keen on trading this new currency form.
The increase in Bitcoin investment is increasing due to its rapidly increasing value. At the end of December, the Bitcoin price was $17,450 and it is predicted to reach $25,000 in the next few years.
Now, Bitcoin is added to the payment options list in multiple financial institutions. It is considered a safe option in the highly volatile world economy because the government does not control Bitcoins. It has grabbed major investors and financial press attention that has influenced traders that Bitcoin is very lucrative.
Bitcoins glorious moments
To get on the bandwagon, get in touch with a trustworthy Bitcoin Australia trade platform to open an account. Buy Bitcoins and hold to it until its value increases. You can sell it at a price you set to exit the position and enjoy the profits. In the early days, several Bitcoin traders became millionaires.
Traders who invested just $1 in Bitcoin right from its introduction are worth $1.4 million at the moment. In case, you missed the opportunity with Bitcoin, there are other cryptocurrency options you can invest in, today.
Is shorting possible with Bitcoin?
The cryptocurrency can be short-sold. What rises has to come down? Can you profit from Bitcoin, when its value drops down? Shorting an asset is a simple process. Then the tricky part is to figure out how your investment will play……will it make a profit if the investment value rises or goes down?
With any investment, being educated and informed is crucial to make a wise decision. You don’t need to be a professional. Anyone can get familiar to short-sell Bitcoin and earn profits.
Many analysts claim that escalation in the prices is unsustainable. A drop down is looming, so it has become necessary for traders to know how to short-sell? Besides world governments are scrutinizing Bitcoin investments and exchanges very closely. As cryptocurrencies are anonymous, so the authorities are concerned about the possibility of tax avoidance.
Bitcoin short-selling options
Direct short-selling of Bitcoin
Sell your current Bitcoin at a comfortable price. You hope for its value to drop more, so you can invest again at lower prices.
Use margin trading platform committed to cryptocurrencies. You get to borrow money to make a trade with the hope to pay it off when you win the bet.
Bitcoins can be short sold in the futures marketplace. A future is a contract between the buyer and seller. A buyer agrees to invest in Bitcoin at a fixed price on a future date. You predict that the Bitcoin price will escalate. In this way, on the expiry of the contract, you buy the Bitcoin below market value.
Binary options trading
In options trading ‘Put’ and ‘Call’ is involved. The former means to sell a determined number of Bitcoins at a specific time called strike price. The Put option is worthy when the value of Bitcoin loses to the strike price. In a Call option, you buy a certain number of Bitcoins at predetermined rates until a specific date, which is its expiration date.
From every small value changes or extreme fluctuations, traders can benefit……so learn short-selling of Bitcoins!