Cryptocurrencies finally made everybody talk about it. This asset class is so popular that it's even used for trolling one of the most famous and influential figures in financial world.
Recently some guy tore mass media to shreds when he appeared on all TV channels right behind the US Federal Reserve Board Chairwoman Janet Yellen. She testified on Capitol Hill in Washington DC, and he stood behind with a sign that read: “Buy bitcoin.”
Since the start of 2017 bitcoin, the most popular cryptocurrency, surged three times to the peak $2,889 reached on June, 12. It means that even if you were not smart and proactive enough to buy it at $200 in 2015, you could still have earned 312 per cent, if you bought it in January. If your investment was $1,000 you would have had $3,120 by now.
But how to trade it right now, when it experiences the period of increased volatility?
On Sunday, July, 16, bitcoin fell below $US2,000 for the first time during two months, and hit a weekend low of $1,812 before going back towards $US2,000.
Right now everybody is talking about disagreements among the currency developers over the future of the blockchain platform the currency is traded on.
The zero hour was on July, 21, as a test run of a revised platform with faster transaction speed was performed. That day more than 90 per cent of the market took up higher-speed network. So, for now there are high chances the platform will be introduced permanently from August, 1.
But that fact is actually priced in, and there are high chances to see selloff of bitcoin after the initial shoot up? And as the history shows when cryptocurrency is sold, it may lose about 50% of its value. We saw it in late 2013, when the currency surged almost 8 times during a couple of months, but then lost about 25% in three weeks, and 50% in 4 months.
You have already lost the opportunity to earn on bitcoin rise, so this is the time to correct mistakes and to profit on its fall.