Forex and Bitcoin are an increasingly solid pair. Investing in the famous virtual currency is no joke. Here are some tips to do better.
Forex and Bitcoin are an increasingly solid pair. This is not surprising: the famous virtual currency came to light a few years ago due to a positive trend that had taken it to unthinkable levels.
After a partially dark period, Bitcoin has replayed the lion’s share, so it attracts an increasing number of investors. This does not mean, however, that practicing Forex trading with Bitcoin is simple. On the contrary, its strengths put into practice some elements of difficulty that, with a bit of `ingenuity and much preparation, can be overcome.
What is bitcoin?
Bitcoin is a virtual and decentralized currency, minimally regulated. Unlike real currencies, it is not managed by a higher body, a central bank or a large credit institution. Liquidity is subject to an algorithm that regulates the emission based on sophisticated calculations. You can buy a Bitcoin currency, like any other currency, or “extract it” through “mining”, an activity designed to “guess” the code behind each unit. Mining requires huge computing capabilities, so more computers that work synergistically are often used.
This information, or at least a good part of it, explains the sensational trend that Bitcoin has maintained in recent years. A trend without any element of balance; by radical definition, volatile, explosive.
Invest in Bitcoin
How do you bet your Bitcoin? It is not possible to answer with certainty to this question since the virtual currency was born recently (it is not even ten years old) and the literature on the subject is scarce. Analyzing historical data, however, it is possible to get some advice.
To date, the only valid indication is to consider Bitcoin as a good refuge. It may seem paradoxical, given the volatility of the currency, but it is. Bitcoin reacts, and also intensely, to some events as gold would. The reference is to political, economic and monetary convulsions.
This is demonstrated by the data. Bitcoin achieved extraordinary results for the first time between 2013 and 2014 when a “bloody” currency war was underway. It was back in fashion in the second half of 2016, when Brexit and the Trump election questioned the international context. Even today it continues to break new records, but it’s not about uncertainty, but about the news that Bitcoin is about to enter the world of ETFs.