Trading crypto monnaies vs trading traditionnel - Bitcoin et l'or
Cryptocurrencies are the next step in financial evolution. Bitcoin is the first decentralized digital currency and based on a system that operates without any central bank or intermediary, the BTC has made a real breakthrough in trading and asset allocation. Online currency trading has therefore broadened its asset base ... but will it eventually replace traditional investment?
Should we flee Gold for Bitcoin?
People love gold. It is a safe haven. That's why a lot of the investment is invested in this precious metal. But the time of the gold rush is over; buyers of gold and bullion should not treat it as an asset for quick wealth. On the other hand, it remains an interesting term investment.
There are traces of ancient gold mining and mining operations dating back to 200,000 BC. Civilizations began trading gold around 600 BC. jc, and it is still used by traders and investors with a lot of enthusiasm today. Investing in gold also has the advantage of holding a product with intrinsic value, as a precious metal but also as a metal used in the manufacture of many products (especially electronic). In addition, it should be emphasized that the price of gold is much less volatile than other assets, including Bitcoin which lacks stability simply observe a chart of the price BTC USD to notice.
We can totally envisage a rebound in the gold price. The US dollar is negatively correlated with gold, so any weakness in the US currency should have a positive impact on the price of the young metal. The cost of extracting gold from mines is likely to increase significantly, leading to the bankruptcy of a certain mine and thus reducing the supply of gold. If this happens, prices will increase as gold reserves run out.
Gold accounts for about 1-2% of financial transactions. An increase in gold demand should lead to price spikes. In addition, any rise in the inflation rate could lead to an increase in the price of gold. In addition, the ratio of debt to GDP in developed countries has steadily increased in recent years, reflecting an increase in the amount of money in circulation, which is positive for precious metals, such as gold, since this induces a fall in value of the counterparty.
The amount of Bitcoin unit in circulation is limited, which induces a specific difference compared to other investments. For the first time we have an asset that is not fully controlled by a third party, such as a government or a central bank. However, Bitcoin is unlikely to replace gold as an investment asset because the system put in place by Bitcoin is still far from the common markets in terms of number and volume of daily transactions. It is only once that Bitcoin has reached this scale of development that it can legitimately claim the status of "universal" currency and be used as a legitimate form of money.
1958/5000
A Bitcoin trading strategy
We are currently witnessing irrational behavior in the cryptocurrency market. People think it's the future, but they remind me a lot of the internet bubble ... and it could burst with significant damage.
Bitcoin is by far the most popular cryptographic currency. People invest money in thinking that it will never be depreciated because there is no central bank to charge its regulation. At some point it will be necessary for one or more entities to control it, because people buy Bitcoin to pay for trades / services, and it is difficult to pay with small fractions of units. If a Bitcoin is worth, for example, $ 14,400, and a plumber charges you $ 100 for its services, in terms of Bitcoin that would mean that you need to pay it with a fraction of a coin (of a bitcoin unit). Thus, this system becomes ridiculous from the moment when the value of a Bitcoin unit becomes too important. It will therefore be necessary:
Create additional units of Bitcoin;
Change the price if it becomes too important;
Find a viable alternative if you are not able to pay in very small fractions of Bitcoin.
One more thing to note is that if you hit the equity markets again in 2018-2019, Bitcoin 2018 could collapse with the equity and real estate market. Usually, all risky assets explode together, and one could witness a value destruction. When loans are repaid, this effectively reduces the money supply by an amount equal to that of the repayment, while the assets are devalued while the currencies strengthen in this kind of environment.
Buy Bitcoin Futures
The adoption of future Bitcoins should be seen as a major step in the evolution of Bitcoin 2018. Banks tend to denounce Bitcoin because it is an investment made in an unregulated market, which they consider as a "risky" investment; they denounce this because these investments in Bitcoin would constitute a leak within the capital usually allocated to the traditional banking services which it proposes to the private individuals. Switching to a regulated market makes transferring funds between individuals and / or traders easier and cheaper via Bitcoin technology. The introduction of future BTCs is a first step in the regulated market space, which is a lower risk for investors wishing to buy Bitcoin.
Basically, when you consider what Bitcoin offers to society, in the sense that it constitutes a store of value (especially for countries with highly devalued currencies or hyperinflation) and a Bitcoin buying platform (of transactions), it is not excluded that the price could reach $ 70,000 per Bitcoin, which would bring it to a market capitalization level of US $ 1 trillion, which would still represent a fraction of the market. gold, which is valued at 7 trillion US dollars. It should be noted however that Bitcoin is much easier to use for transactions, unlike gold which is only a safe haven.
In addition, several elements of the technical analysis shows that it could reach $ 70,000 per Bitcoin, as crazy as it may seem. The use of futures contracts via Bitcoin futures should provide more liquidity to the Bitcoin market, making it less volatile.
Bitcoin investments: other risks
It can not be ruled out that governments are going to press against Bitcoin. Indeed, this cryptocurrency rivals the national currency of the states, and thus mechanically renders monetary policies ineffective.
In addition, banks have large portfolios and may decide to buy Bitcoin to protect the revenues they derive from their retail banking services, as these revenues are threatened by Bitcoin technology.
For conspiracy theorists, it is likely that banks and governments decide employees of hackers to hack into Bitcoin technology. This would create a security loophole, which would lead to a loss of confidence on the part of investors and would lead to a massive repatriation of capital to the more traditional assets offered by banks.
As central banks are printing more and more money over time, thereby devaluing the value of fiduciary currencies, the current quantitative easing (QE) policies could then be considered very risky, since central banks' balance sheets are swollen. As central banks embark on such decisions, they do not demonstrate any willingness to safeguard the long-term value of their respective currencies in a currency war environment.
The key factor with the announcement of the CME (Chicago Mercantile Exchange, Chicago Stock Exchange) is that now large investors can hedge their exposure, so they no longer have any reason to avoid investing in Bitcoin. The next few days will determine the interest of institutional investors for this market. If they can cover themselves, they will come into position. Do you remember the internet bubble? Conservative funds were forced to invest in high-tech stocks that were deemed risky because their results seemed poor compared to high technology funds. The same thing can happen to crypto currencies. When the first funds get double-digit returns by putting some of their funds in crypto, everyone will want to emulate them and follow suit.
Bitcoin, a risk free investment?
It is claimed that Bitcoin can not be hacked, manipulated or tampered with; However, digital exchanges or portfolios are vulnerable, as are online bank accounts. If you hold a Bitcoin, you can become the target of hackers.
As Bitcoin does not really exist in a physical sense, they are Bitcoin secure digital keys that are actually stored in the wallets. A private key is a secret code allowing the user to prove ownership of Bitcoin purchased or held in a wallet. Portfolios installed on smartphones using an application, or web-based portfolios, can also be used to purchase cryptocurrencies. Holders of Bi
How to trade Bitcoin?
Traders often ask me:
On which platform to buy Bitcoin (sell Bitcoin);
How to trade Bitcoin against the US dollar (BTC / USD);
How to invest Bitcoin to make money;
How to trade Bitcoin thanks to Forex;
Can we trade Bitcoin via MetaTrader 4?
Gold appears to be in a revaluation phase, while crypto currencies such as Bitcoin are now rivaling gold as the preferred safe haven asset for investors, and while significant inflation risks are emerging. This cryptocurrency has potentially weakened some of the demand for gold. In addition, it is likely that the Fed (the US Central Bank) could raise its rates three times over the next 12 months, which would lead to prefer the investment in bonds to those in gold.
For this reason, as well as all that has been mentioned above and because of the high potential of crypto prices, the best solution would be to trade Bitcoin vs. fiduciary currencies, like the BTC / USD CFD that Admiral Markets offers, for example .
Because of the uncertainty surrounding Bitcoin as an asset, you may want to exploit its daily variations to your advantage. Just put, when investing in Bitcoin, the traditional strategy of buying and keeping is still dangerous.
Bitcoin trading strategies can be day trading, swing trading, and / or scalping strategies. You can always attend the professional webinars of Admiral Markets and ask your live trading questions via the MetaTrader 4 trading platform.
Traditionally, there are cycles of price changes on each asset and financial instrument. Four phases can be distinguished within the major price / market cycles:
Accumulation
Acceleration
Distribution
Correction
Depending on the market, the different phases of the cycle experience similarities and can go through the same phases simultaneously. Markets are cyclical, they can see their prices rise, make bullish pikes, undergo a correction and then marked a low. When the cycle is over a new one takes over.
Many investors and traders find it hard to recognize that markets are cyclical or forget to watch the end of the current phase of the cycle. Moreover, even when one accepts the idea that there are cycles, it is almost impossible to anticipate and recognize live a bullish peak or a lower one. However, being able to recognize cycles is essential for all traders who want to maximize their market performance.
Using our graphs, you may be able to exploit major pairwise movements such as BTC / USD on weak time scales such as M5 charts, but also on longer time scales with for example graphs in D1. You can also invest on larger time scales with weekly or monthly charts to get back to the weak or strengthening phases of the course.
By using intelligent leverage in your BTC / USD CFD trading, you will be able to record much better returns than investing physically in Bitcoin.
Conclusion
Will the Cryptocurrency Bitcoin 2018 become a full-fledged currency? As with any new technology, new enhancement or technology may appear over time, and when that happens, it is possible that the value of Bitcoin will negatively impact, a crack (a sharp drop) not to be ruled out. Unlike fiduciary currencies, Bitcoin has no interest yield, so in a normalizing monetary policy environment with rising rates, it's best not to try to treat that asset as a long-term investment able to finance your retirement.
Although the BTC is an innovation and perhaps even an evolution among the virtual payment systems, there are still many issues in terms of security and sustainability that need to be addressed and addressed before we can encourage customers to pay for it. use or accept it as a standard payment method. While we assume that Bitcoin could possibly be a viable investment choice, it should never exceed the stability and versatility of gold as a safe haven.
It may be wise at first to start investing a small amount of your capital. A fraction of your capital on the order of 0.1% is ideal for you to learn how it works, so you can familiarize yourself with how to analyze and trade it in a safe environment such as with an account Admiral Markets demonstration.
If you want to trade BTC / USD CFD - or Gold spot CFD - we suggest you pay close attention to the risks that may be involved in leveraging trading. Do not forget to always practice via a demo account before you start in real life!