Are you a “Bitcoiner”?
It’s been around for near a decade now and has grown into an industry. Many ways to make money with Bitcoin and trading seems to be the most common. If you are new to it, here are some Bitcoin trading strategies shared by traders.
Bitcoin, launched in November of 2008, is the first digital currency that ushered in an era of digital currencies.
It was launched by a mysterious individual or group of individuals who were known as Satoshi Nakamoto. While the charm of Bitcoins has not faded, it becomes necessary for investors to know the advantages and shortcomings of this currency prior to making investments.
Advantages and Disadvantages of trading Bitcoin
Taking a closer look at the pros and cons of becoming a Bitcoin and cryptocurrency trader will help you in making an informed decision.
Let’s begin with the positives:
7 Advantages Of Bitcoin Trading!
- One of the biggest advantages of investing in Bitcoins is that Bitcoin transactions are anonymous and private. Unlike regular transactions through banks, here one cannot identify transactions; you can only see the addresses where the Bitcoins have been received or sent. However, the owner of these digital addresses is not revealed.
- When you pay using Bitcoins you have the freedom to transfer funds to anyone in the world without needing intermediaries like banks or governmental financial institutions. Transactions take place across international borders in a secure and hassle-free manner.
- Transaction fees are minimal compared to ordinary monetary transactions. When an individual needs to send or receive transactions quickly he can pay for faster processing. Even then, transaction fees are much lower than what you would have to pay for normal bank transactions.
- Bitcoin transactions are immutable and this makes them more secure. Data once entered cannot be tweaked or removed. Transactions do not contain any sensitive personal information. So, merchants are protected from losses due to frauds and fraudulent chargeback.
- With Bitcoins, there are no associated fears of the government taking these away at any time. In case a government decides to demonetize a paper note, it will cease to hold any monetary value; but, this will not happen with the Bitcoin. Since it’s decentralized finance, the government or banks have no control over it; governments can only ban the currency but your Bitcoins will continue to hold value in any place or market where it is considered legal.
- Another advantage with Bitcoins is that transactions are speedy and can be processed within ten minutes. Transactions can be processed instantly when there is a zero-confirmation transaction wherein the merchant will accept risks of accepting transactions when these have not been verified by the blockchain. While credit cards can also guarantee instant approvals, there are steep fees involved. Now the speed of bitcoin trading can be increased even higher when using automated bitcoin trading applications such as immediate edge by the traders. The automated trading bots execute the trade autonomously even during non trading hours and yield good profit.
- Finally, the biggest advantage of using Bitcoins is that you do not have to divulge your private information. Most online buys today are conducted via credit cards where you have to provide confidential information.
Recommended: 5 Tips to Trading Cryptocurrency on a Secure Mobile App!
5 Disadvantages Of Bitcoin Trading!
- Not everyone accepts the Bitcoin; while more and more businesses are steadily adopting Bitcoins for payment, the numbers are far from impressive.
- Bitcoin prices are so volatile that there is a lot of uncertainty in Bitcoin trading. While speculators want to take advantage of this volatility, investors are scared to invest as they find it highly risky.
- The Bitcoin software has many inherent flaws that are being worked upon by developers to make Bitcoins more convenient and secure for masses. But it is in a nascent stage of development and Bitcoin businesses provide no insurance.
- There is also a strong possibility that Bitcoins can be banned by a government as has happened in many nations all over the globe. This is resulting in Bitcoin wallets and Bitcoin companies being shut down; the coins in such wallets become frozen and accessing them is a huge challenge.
- Bitcoins have also been used for money laundering and purchase of illicit items on dark websites.
Conclusion
We have a longer list of advantages. This points to the that trading Bitcoin could be more profitable. What do you think about it?
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