Friday, 31 January 2014

Are you looking to trade BitCoins?

In general if there is an increase in the number of buyers for a product, the price rises as they try to outbid each other to get hold of it. Vendors then sell at an increased price and turn a larger profit.

Look at Apple. The electronics giant creates an aura around its iPads and iPhones. It has shiny skins on its goods and uses shiny advertising with shiny people to create a desire. People have been known to queue for hours outside Apple Stores just to get their hands on the latest gadget from Cupertino.

As much as individuals like tangible objects, smart people, such as yourself, like to make their money work in order to create more money.

People invest. They buy stocks, they buy shares. They invest in Bitcoin. I’m sure that by now many of you are aware of this cryptocurrency, especially in light of the US senate hearings on 18 November, in regard to its legitimacy.

Bitcoin is a very volatile currency. Volatile means that its value compared to other currencies can vary wildly. Everyone can see how to make money in a rising market. Buy Bitcoins, the value increases because people want them, and in, sometimes a very short space of time, you have a handsome profit.

So. what do you do when the bubble bursts? The price is collapsing and woe spreads throughout your portfolio.

Simple. You SHORT the Bitcoin. If you think Bitcoin has reached its peak for the time being you can still profit by SHORTING the currency.

Shorting means agreeing that someone else will pay a guaranteed amount of money per bitcoin. And here’s the rub, you don’t own it. They do, and you agree that they sell it at the price of your choosing. If the price drops from the original, agreed price, YOU KEEP THE DIFFERENCE.

Shorting bitcoin means you want the price to fall.

You can make money in rising and falling markets. To do that you will need a trading account. I don’t want to sound like a sourpuss, however there are things you need to be aware of.

1. You are risking your own real money. The value of Bitcoin and other CfDs can rise as well as fall.

2. I use plus500.com to do my trades. It is a CfD service. If you don’t know what they are, read this wikipedia entry about CfDs

3. plus500.com offers new users a welcome bonus. The bonus is dependent on how much money you transfer into your account with them.

4. plus500.com is Authorized and regulated by the Financial Conduct Authority .

I’ve been using them and have had no problems with their website, adding funds, trading, nor any problems withdrawing money to my current account.

Prior to trading, they do require documentary evidence of who you are. I found it straightforward to use my camera phone and send them an image of my driving licence.

If you’re looking to trade in an online market you’ll want to sign up by clicking here.