Can you make money with Bitcoins? – Bautzen messenger

After the Bitcoin price climbed from USD 3,000 to around USD 13,800 between January and June 2019, private investors also began to take an interest in the cryptocurrency again. Ultimately, Bitcoin is still far away from the all-time high, the end Established in 2017 and priced at nearly $20,000.

Even though there was a price correction at the end of the summer and Bitcoin was at USD 7,500 for a short time, it went up again a little later: At the current time (as of early November 2019), Bitcoin is in the USD 9,300 range - trend rising.

Because if you look at the latest forecasts from analysts, you will very well toy with the idea of ​​investing money in the crypto market - some forecasts put Bitcoin at over 20,000 US dollars; if you follow JohnMcAfee, for example, who launched the virus protection of the same name, Bitcoin will reach the 2 million US dollar mark at the end of 2020.

Invest only free capital

Anyone looking for a profitable investment should therefore deal with Bitcoin. But only if you a) have freely available capital and b) also know that you really need strong nerves here. Because the volatility of the market is extremely high - strong price fluctuations are simply the order of the day. Bitcoin can fall by 200 US dollars in the morning, but have risen again by 300 US dollars in the evening.

Because the predictions do not guarantee a profit, you should be aware that you can of course also lose money. It is therefore important not to invest any amounts that are required for the next rent or loan installment.

Trading Bitcoin

In 2011, the price of bitcoin was just $1. With an investment of $500 at the end of 2017, when bitcoin was in the $19,500 range, you would have made a profit of $9.75 million.

Of course, there are still enough investors who speculate on a corresponding performance. But times have changed, especially with regard to the price of Bitcoin. Today almost 10,000 US dollars have to be put on the table for a coin - so although you can of course only buy a part of a coin, you have to put a much higher amount at risk.

Of course, that also means a higher risk. Anyone who got around 500 coins for 500 US dollars in 2011 would have made a loss of 250 US dollars if the price were halved - today a price halving would result in a loss of around 5,000 US dollars.

Anyone who invests their money in Bitcoin should be aware that it can be quite dangerous - high profits are possible, but it can also go in the other direction at any time. The best example here may be the year 2018. While Bitcoin was still almost $20,000 in December 2017, the crash followed in early January: Bitcoin crashed from $20,000 to $10,000 - at the end of the year it was only around $3,000. Anyone who got in late and didn't sell in time had to accept a drastic loss

Trade PerCFDs

But you can only deal with the price development of Bitcoin - you can invest via Bitcoin Future or open an account with a classic CFD broker. Because if you decide to trade CFDs, you do not have to invest directly in Bitcoin. In this case, you only work with the base value - that is, you put your money on the "rising" or "falling" course, i.e. going "long" or "short". If the market develops in the right direction for the trader, then it will made a profit.

Because this is a leveraged product, you have to be extremely careful. For this reason, it is advisable to work with Stop Loss, a risk-reducing tool.

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