At the moment, Bitcoin is one of the most talked-about subjects in the global financial sector. 2021 has been extremely beneficial for this cryptocurrency as it reached heights that none of us thought are possible. These days, Bitcoin is valued at around $40,000, which makes it as valuable as gold and that is quite an impressive fact.
The massive price tag is what attracts so many traders to its network. Thousands of people register to start trading with Bitcoin and thus, use their skills and knowledge to make money. We are sure that you know this, but trading with Bitcoin is not as simple and easy as one would think. That is why we wanted to list a few things that you should pay attention to when trading with Bitcoin as they can help you maximize your profits. Let’s check them out.
The Volatility Rate
One of the biggest challenges that Bitcoin traders face is the volatility rate. Bitcoin has a very high volatility rate. That means that its price fluctuates and changes each day. It goes up on some days and falls on other days. Take the Tesla investment as the perfect example.
After the car manufacturer announced that they invested $1.5 billion in Bitcoin, they helped Bitcoin rise more than $4,000 in value in less than a week.
The Reputation of the Trading Site
Trading sites are the marketplaces where you can sell your Bitcoins and make money. Thanks to the fact that they are far easier to access and have much smaller fees than Bitcoin ATMs, they are the number 1 option of many traders.
A reputable trading site can make all the difference for you and here’s why. Platforms such as https://cryptoengine.io/ help traders maximize their profits by providing them with the perfect tool to battle its volatility. AI systems that scan the market and collect all Bitcoin-related data are used. The data is used to predict how will Bitcoin fluctuate in the future.
In the end, the results are shared with the registered traders who have the means to make a lot of money. Be mindful though, these services do not guarantee you profit, they just increase the chances. To gain access to them, you just have to register; the process is fast and simple.
Halving events are the opposite of Bitcoin mining. While Bitcoins are released with mining, during halving events, the circulation of this cryptocurrency is drastically cut. But, while Bitcoins are hard to earn during them, there is one interesting benefit that comes from them.
After each halving event ends, Bitcoin spikes in value. That happened three times so far. The last halving event was in May 2020 and experts now believe that Bitcoin can reach $100,000 by the end of 2021. As for future halvings, the next three are scheduled to take place in 2024, 2028, and 2032.
One interesting fact about 2032 is that on this year, 99% of all Bitcoins will be mined.
One of the most common psychological challenges that Bitcoin traders need to master is FOMO, or also known as fear of missing out. This occurs when novice traders see a spike in value that lasts for a few consecutive days. So, out of fear of missing out on a hefty profit, they invest in Bitcoin only to see its value drop down in the next couple of days and end up losing money.
Learning how to deal with FOMO is a must as it will enable you to bring educated decisions, rather than emotional ones. Other psychological traits that you need to master are patience, working under pressure, and dealing with the fact that some days you win and on some, you lose.