Has there ever been an investment asset more volatile than Bitcoin? From day to day, sometimes from hour to hour, the price for the digital coins which have instigated a kind of financial revolution can take rapid dives and then rally for sudden soars that occur equally as quick. That is enough to scare a lot of people away in a hurry. Yet those who stick with Bitcoin seem likely to be rewarded, as little by little it is winning over new adherents and steering clear of the obstacles thrown at it by detractors. As a result, Bitcoin seems to be a solid, maybe even spectacular long-term investment. But is it worthwhile in the short-term, when timing the market is required for investors to make quick profits?
On the one hand, Bitcoin would seem like a prime opportunity for so-called day traders, because it tends to operate within a wider range of values than the traditional asset, giving it more room to reap big profits for investors. The problem is that these surges can be quite unpredictable. More dangerous still to day traders is the fact that the drops in value can also come without much forewarning. Perhaps an investor’s best outlet for dealing with Bitcoin is a reliable, artificial intelligence-enhanced trading robot like Bitcoin Code. If you are going to try and guess at the Bitcoin market from day to day, here are some worthwhile tips.
1. Focus on It
Because of the extreme volatility of Bitcoin, you will need to really hone in on it every single day to get a feel for how the price moves. If you are trying to trade with it in conjunction with all your other assets, you might end up missing out on the right moment to buy. It’s best if you hold on to all other assets for the duration of time that you are trying to time the Bitcoin market, just to make it easier on yourself.
2. Put in Stops
If you are going to day trade with Bitcoin, you must make sure that you have some sort of cushions in place to prevent the inevitable fall. Decide upon a level which will trigger an automatic sell-off so that you can limit your losses. As tempting as it might be to ignore these stops, paying them to heed will prevent a lot of investment heartache.
3. Read the News
People are jittery about Bitcoin. Whereas bad news about a blueblood stock isn’t likely to shake its value all that much, bad news about Bitcoin can shake the value to its core. By the same token, a positive news story can give Bitcoin an uncharacteristically high boost in value as well. Try to keep on top of every bit of information you can get on Bitcoin, and make sure that information is reliable.
These are some of the ways you can protect yourself and potentially maximize your profits when it comes to Bitcoin. Use them and then hold on tight for what could be a bumpy yet thrilling ride.