Though it is volatility that helps you make money from any market be it stock or Forex, a lot of it can also be extremely scary. Bitcoin exchange rate fluctuate a lot as within a month they may fall or go up by hundred dollars. For instance, during the recent Greece crisis, the Bitcoin exchange rate went up to more than hundred dollars.
However, the digital currency gives you ample space to make profits from such up and down in the exchange rate. Unlike other currencies, there are three ways to make money with Bitcoin, saving, trading and mining. Additionally, as Bitcoin can be traded on open markets, which means you can buy Bitcoin low and sell them high, there is every reason you should trade it.
It indeed is true that Bitcoin has extremely volatile exchange rate that may scare traders and investors as they never know how much can it fall. Similarly, the value of Bitcoin drops and goes up depending upon the economy of the globe or policy changes. The biggest drop came to Bitcoin exchange rate after the collapse of Mt. Gox, one of the biggest exchanges.
Thus, from the experience in the past it appears that a bad event can cause huge damage to the exchange rate of Bitcoin. According to Bitcoin chart, the Bitcoin exchange rate went up to more than $1,100 during December 2013. That was when more people became aware about the digital currency and then came Mt. Gox that ruined everything.
Bitcoin exchange rate has different value against other currencies when compared with dollar. Also, the exchange rate depends a lot on various exchanges as many of them have decided to have some differences. Whereas some countries have out rightly rejected the idea of Bitcoin and other digital currencies, some countries are still oblivious.
Using BTC as a currency-of-exchange to get around not having a functioning central bank system or any other country that relies heavily on mobile payments can be extremely great an idea. Bitcoin's expansion in coming years will be led by Bitcoin ATMs, mobile apps and tools. Thus, it depends a lot on how the people use the new tech to use Bitcoin.
Bitcoin exchange rate also depends a lot on the acceptance by the merchants, users and governments. More people have accepted the use of Bitcoin and supporters hope that one day, the digital currency will be used by consumers for their online shopping and other electronic deals and this is going to be a major boost for the Bitcoin exchange rate.
However, the digital currency gives you ample space to make profits from such up and down in the exchange rate. Unlike other currencies, there are three ways to make money with Bitcoin, saving, trading and mining. Additionally, as Bitcoin can be traded on open markets, which means you can buy Bitcoin low and sell them high, there is every reason you should trade it.
Why Bitcoin is so volatile?
It indeed is true that Bitcoin has extremely volatile exchange rate that may scare traders and investors as they never know how much can it fall. Similarly, the value of Bitcoin drops and goes up depending upon the economy of the globe or policy changes. The biggest drop came to Bitcoin exchange rate after the collapse of Mt. Gox, one of the biggest exchanges.
Thus, from the experience in the past it appears that a bad event can cause huge damage to the exchange rate of Bitcoin. According to Bitcoin chart, the Bitcoin exchange rate went up to more than $1,100 during December 2013. That was when more people became aware about the digital currency and then came Mt. Gox that ruined everything.
Bitcoin Exchange Rate Against popular Currencies
Bitcoin exchange rate has different value against other currencies when compared with dollar. Also, the exchange rate depends a lot on various exchanges as many of them have decided to have some differences. Whereas some countries have out rightly rejected the idea of Bitcoin and other digital currencies, some countries are still oblivious.
Using BTC as a currency-of-exchange to get around not having a functioning central bank system or any other country that relies heavily on mobile payments can be extremely great an idea. Bitcoin's expansion in coming years will be led by Bitcoin ATMs, mobile apps and tools. Thus, it depends a lot on how the people use the new tech to use Bitcoin.
Bitcoin exchange rate also depends a lot on the acceptance by the merchants, users and governments. More people have accepted the use of Bitcoin and supporters hope that one day, the digital currency will be used by consumers for their online shopping and other electronic deals and this is going to be a major boost for the Bitcoin exchange rate.
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