Bitcoin underwent a lot of ups and downs in its brief history and we have made a a complete guide to bitcoin for those who need a speedy update on the bitcoin trading ecosphere.
However for those who are quite familiar with bitcoin, here is our run down of major crashes during the early years of this digital currency experienced by Bitcoin traders .
Infographic via Investoo
Bitcoin is undoubtedly the most popular digital currency that is created and stored online. The idea of BTC was a brainchild of Satoshi Nakamoto – a gifted programmer. The main difference between BTC and physical currencies is that BTC can’t be mined (created) in unlimited numbers. On the other hand, central banks usually print their local currencies in large quantity just to settle their national debts etc. which consequently results in widespread inflation and other economic problems.
There are a number of choices available for BTC trading on margin. Let’s discuss those options and explain some effective means to forecast Bitcoin price. However, before coming to our subject matter let us warn everyone that trading BTC on margin can be extremely risky because of its highly volatile nature. History shows that Bitcoin has a capability to move 800$-900$ within 30 days – that’s the level of its volatility. The given below chart shows the highly volatile nature of this crypto currency.
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Etoro.com is another major platform that offers leveraged BTC trading.
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How to Forecast Bitcoin Price Effectively?
Let’s discuss some effective ways to forecast BTC price for day trading. There are basically two methods to forecast BTC prices;
- Fundamental Analysis
- Technical Analysis
Let us discuss each type of analysis in detail;
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Fundamental Analysis
In fundamental analysis, we study various economic and political factors that may affect the price of BTC. Some key fundamental factors that may cause sudden rise or fall in BTC price are as follows;
The most important fundamental factor that often causes high volatility in BTCprice is the sudden increase or decrease in BTC demand because of some political, legal or business decisions that consequently lead to sharp increase or decrease in BTC price. Some examples of such decisions are as follows;
- US supreme court legalizes BTC existence
- China mulls restriction on BTC transactions
- Microsoft starts accepting BTC as a payment method
- Hackers stole BTC worth millions in widespread hacking on exchanges
It is recommended to keep yourself updated with current affairs and routine news relating to Bitcoins if you are a trader.
TheBitcoinNews.com – Bitcoin News source since June 2011 –
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