Bitcoin is a virtual money or also known as cryptocurrency, powered by block chain. It has no physical state but it’s value much bigger than any physical currency in the world. It’s kind of computer codes you share in a form of transactions and every transaction generates a small proportion of new bitcoin . It is decentralized, very liquid but unfortunately not that much stable like Euro or Usd. If you had buy one unit of bitcoin back in 2009 , when it was launched with initial price of around 10usd$ , you would have 10,000$usd for the same by this time . Last year ,Bitcoin was flirting with $20,000 handle (all time high) on newyork stock exchange.
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Let Me Explain Little Deep : Trading Bitcoin vs Buying Bitcoin
The popularity of Bitcoin touched new highs in 2017 , everyone wants to invest in bitcoin or to buy bitcoin. Here I am going to tell you ,what is difference between buying and Trading bitcoin.
Let’s start with Buying , Like everything else when you buy anything , you receive an ownership certificate that indicates , a particular security or property on your name. To buy a bitcoin , you need to create an e- wallet on Block chain website , of-course its free to create e-wallet like an email address. Then you go to a particular Bitcoin seller like Bit stamp or other on internet. You buy bitcoin from particular seller on particular exchange rate. Let say , you Buy 1 bitcoin at $5000 usd , now you have 1 unit of bitcoin in your e-wallet. It will stay there forever unless or otherwise you decide to sell back into the market on profit or loss.
On the other hand , when you decide to trade bitcoin , you are not actually going to buy anything or going to become owner of the bitcoin. It means you don’t have to create any e- wallet.you just simply call your Forex broker or even take trade on MT4 platform. in this case you are holding a particular amount of bitcoin for short period of time to generate profit according to market price fluctuation. you can close your trade anytime with profit or loss. with the concept of leverage , bitcoin trading has many advantages over buying.
so which one is better way to approach bitcoin, As a trader i would suggest , Trading bitcoin could generate more profit than buying .
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