Investing in Bitcoin
Before you even think of buying bitcoins, you should know that this is a risky investment, but it could make you wealthy if you use the right technique and luck favors you.
Investing in bitcoin is different from other investments.
Most investments provide a certain profit ratio. The ratio varies but it is guaranteed that you will not suffer a loss. Bitcoin investment is not like that. You can either make huge profits or your hard-earned money can go down the drain in a jiffy. So it is important that you realize the value of this investment. You can go from a hero to a zero in just a matter of minutes.
Make a Decision
Mark Cuban, a billionaire investor regarded bitcoin investment as a gamble. He further added that you should only invest if you have extra cash to spare. Since Mark can afford to take the risks, he owns bitcoin.
You cannot just blindly follow your friends in UAE who buy bitcoins. You need to research before you make such a decision. For that purpose, you can observe the latest trends to predict the future value by understanding bitcoin price charts, or ask other experienced traders who can guide you. Understanding price charts is a technical process and make sure you become an expert in predicting future values.
Bitcoin Price Charts
When you have finally decided to step in the world of cryptocurrencies, you should consider the price charts which are important for bitcoin trading. Using these charts you can see the changes in price and after analyzing you can determine when the price could increase or decrease. You can use the candlestick chart, bar chart, or line chart.
As the name suggests, this chart contains small and large candlesticks which depict the changes in bitcoin’s price over a specified period of time. A red colored candlestick shows that the price dropped, while a green candlestick means that the price increased. These candlesticks show the start and end points of the time interval and the lowest and highest prices in those times.
Bar charts are pretty similar to candlestick ones, however they are more difficult to read since they do not clearly show the interval’s start and end point and the prices at those times.
In this graph, line changing shows the price changes. Line moves up if the price of bitcoin increases and moves down in the opposite case. However, this graph does not show what the price did when it was changing and therefore is the least preferable to use.
You should either use the candlestick or the bar chart, as they provide more information than the line chart.
If you are not prepared for a risky investment due to your financial condition, it is better that you don’t involve yourself in bitcoin trading. However, if you have extra cash lying around in your cupboard, you can use it to buy and sell bitcoins cautiously.