The BitCoin is beginning to gain some maturity, and this could be exactly the traction that investors and traders have been looking for. At the beginning of 2016, the conversion rate between the BitCoin and the U.S. dollar stood at roughly $435.70 USD/1 BTC. Today, the rate stands at $659.70 USD/1 BTC. That’s a huge increase in value for the BitCoin, but it’s not the best that’s been seen this calendar year. In fact, the BTC has been falling since mid-June and is currently standing at over $100 off its high point. Right now, it is regaining value, after dipping down below $600 in late June.
BitCoin traders should be excited about this. It means that a highpoint has been tested, and although it didn’t stand up to trader confidence, it also hasn’t fallen nearly as quickly as it could have. In other words, BitCoin sentiment is far more positive right now despite this than it was a year ago. The growing pains of the digital currency are undoubtedly still there, but they are weakening in severity. This doesn’t mean that the currency is out of the woods yet when it comes to coming into its own as a respected and widely used currency, but it is making steps in that direction.
In the past, we’ve looked at BitCoin and have decided that it was far too volatile and far too unpredictable to have any value in a short term trader’s toolbox of trades. Binary options traders are often exposed to the cryptocurrency, and although it’s tempting to jump on the BTC wagon, you shouldn’t do so unless you have a high degree of confidence in the outcome of your trades with it. It looks like this is beginning to change. There is now far more potential for profits in binary trades than there once was, especially if the current confidence levels in the currency stay where they are or improve.
There have been all sorts of horror stories in the past about BitCoin depositories having security issues. These are still an issue, but they are not as prevalent as they once were. There are still BTC wallets that you should avoid, and mining the BTC is much more difficult than it once was thanks to a larger demand for this. The issues surrounding BitCoin are disappearing very slowly, though. That means that trading the currency might be a realistic thing for some traders now.
If you’re going to trade BTC, be sure that you are doing so against a currency that you are comfortable with. For example, many brokers pair the BTC against the Chinese yuan. This is not a currency that many people are comfortable with. Even if you have a firm grasp on the BTC, if you don’t know the yuan well, this can be a dangerous asset to trade. This is precisely why many brokers do this; it takes away some of the advantage you might have on the trade and helps the broker to generate a higher profit rate for themselves. Unfortunately, as a trader in any market, you do have to combat the broker you are using in order to keep your profit rates as high as possible. Remember that brokers need to create profits of their own, but a good broker will always be working with you, rather than against you. When you are trying to find good BTC trades, keep this in mind.
Whether you are a BitCoin miner or if you are a binary options or Forex trader looking to profit off of the fluctuating price of the new currency, there is a ton of potential here. You just need to find it now.