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Cash In With Bitcoin – Best Ways To Get Started

Bitcoin, or BTC, is a cryptocurrency that uses blockchain technology. This digital currency has enjoyed explosive growth in 2017, although it came to prominence way back in 2009.

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Founded by an individual, company, or entity known as Satoshi Nakamoto, Bitcoin is an entirely new asset class that puts fiat currency on notice.

Initially, investors were a little skeptical about digital currency, but such musings have evaporated given the phenomenal interest in blockchain technology. It’s important to understand why Bitcoin is so popular to begin with. For traders, investors and everyday folks – BTC is the ideal solution to low-cost, anonymous, and secure money transfers.

When you transact online, BTC does not rely on a central server network. Everyone involved in the blockchain can access this peer to peer technology. This means that nobody controls BTC, but everybody controls BTC. It is a complex mathematical algorithm that allows BTC to be mined, with a cap of 21 million coins.

Presently, the number of BTC in circulation is 16,498,350, and rising steadily. The only thing that determines the price of BTC is market demand. Supply will never exceed 21 million coins, and the surging interest in blockchain technology is driving BTC traders and investors with bullish options on this premier blockchain payment option.

How to cash in on BTC without breaking the bank?

We have all seen the astronomical price charts of the BTC/USD pair since inception. This cryptocurrency has appreciated by thousands of percent in less than a decade, and growth prospects point to a price in the tens of thousands of dollars.

A $100 investment in BTC in 2011 would be worth millions of dollars by today’s standards. Consider that back then a single Bitcoin was worth $0.30. This means you would have been able to purchase 333 BTC worth an estimated $11,478,476 today. Unfortunately for many traders and investors, the current price of a single unit of BTC is too expensive. That’s why people pay top dollar for fractions of a BTC.

Some people prefer to invest in BTC as a long-term strategy. It can be included in your financial portfolio as a contrarian investment option. Traditional stocks, commodities, indices and currency pairs are making way for an increased allotment for digital currency. Mining digital currency is expensive, and time-consuming. You may be better of simply purchasing the requisite number of Bitcoin and adding it to your financial portfolio.

Be advised that it’s important to safely store your BTC in a wallet or at your secure BTC trading platform. The highest encryption protocols, 2-factor authentication and other security measures should be in place at all times.

Other Ways to Get Started with BTC

1. BTC can be traded in a CFD format. A CFD is a derivatives trading instrument, known as a contract for difference. This is an entirely different way to trade BTC, since you do not take ‘ownership’ of the digital currency. With Bitcoin CFDs, you are speculating on the price movement of the underlying asset, for example the BTC/USD pair. If you believe the digital currency will appreciate relative to the dollar, you would take a long position on it, and if you believe the digital currency will depreciate relative to the dollar, you’ll take a short position of it. This means that you can trade the asset and profit accordingly – regardless of the price movement.

2. You can get started with as little as 10% of the contract value when you trade BTC. Conventional investments in Bitcoin require you to front all the money for this financial option. However, in a CFD format you are only required to put up 10% of the value of the trade. That’s because 10% represents the margin requirement. You can leverage your BTC trades by 10 to 1. A $100 BTC investment is the equivalent of a $1,000 BTC investment in CFDs. When that figure is $1,000, you can control $10,000 worth of BTC trading. As you might expect, leverage can magnify your profits, and it can increase your losses too.

3. It is always important to go with a respected BTC trading broker. According to Stavros Lambouris, CEO International for HYCM, ‘Bitcoin has proven to be the type of asset that traders flock to during times of geopolitical uncertainty. Just recently, we’ve seen BTC break through $4,000 with heavy trading in Asia (Japan, South Korea) as concerns over North Korea mount. This asset is behaving similarly to gold…. HYCM offers options on BTC trading with multiple currencies. A full range of technical services and resource materials is available, including an innovative mobile trading platform, free to download software, anytime, anyplace trading, live BTC charts, updates and news. Further, traders on all Android and iOS compatible devices can easily download the mobile trading apps from the App Store or the Google Play Store.

4. BTC is inherently volatile. This means the price can rise or fall dramatically at any given time. As an investor, this hardly seems like a wise idea. Trading, as opposed to investing, is a more decisive way to profit from BTC price movements. For example, if regulators in the Philippines and South Korea have approved BTC trading – this bodes well for the BTC/USD currency pair. A long position would be warranted in such a situation. Likewise, any negative movements with BTC in the news would turn markets bearish and put options would be warranted.

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