Ready to enter the bitcoin hype?

All You Need To Know About Bitcoin Trading

June 14 by Stephanie Tan

Bitcoin trading – how you get a piece of the action without having to shell out a few grand.

As you know by now, bitcoin is the world’s first cryptocurrency, created back in 2009. A virtual currency that some are saying will become the new gold – or a bubble that will eventually burst.

Since it’s not created or controlled by a central bank, it’s not impacted by things like interest rates or inflation. Despite its association with the underground market, you can use bitcoin to pay for a host of (legit) transactions these days.

Companies now accepting payment with bitcoin include Expedia, Dell, Microsoft and PayPal. It’s even a legal currency in Japan! With one bitcoin worth over $2,500 (as of the date of publication), it might be hard to get change back though…

Is it the new gold?

It does have a few things in common with gold – for instance, it has to be “mined.” Instead of pick-axes though, super fast computers are used. These machines crunch numbers to solve complex math puzzles in a race to earn these bitcoins.

And like the precious yellow metal, there’s a finite amount of bitcoins. You may think that they’re limitless since they’re virtual. But in fact, there will only ever be 21 million bitcoins. The last one is expected to be “mined” in 2140. (There are currently 16 million in circulation!)

Is it a bubble?

Sure, a photo of your next-door neighbour without makeup isn’t worth anything, but if that same neighbour becomes the next Scarlett Johansson? That pic could skyrocket in value overnight!

It’s the same with bitcoin – unlike traditional currencies, its value has shot up at a breathtaking rate. In the past year alone, the value of the bitcoin has tripled against the US dollar. It has skyrocketed from just $600 to over $2,000 today.

But bitcoin trading presents opportunities as well as risks. After all, it’s not recognised as a legal currency in some countries and many governments are looking into ways to regulate bitcoin. That could potentially put a cap on its value in the future.

Trade bitcoin
You may want to get in on the bitcoin hype. But if you don’t have the big bucks to buy bitcoin or the computing power to ‘mine’ it – then you can start bitcoin trading!

Trade bitcoin on BUX now!

Written by

Stephanie Tan

Nomadic wordsmith who has dabbled in public relations, media and now, casual trading. She may not have a head for numbers but she enjoys doing cyber-sleuthing on companies and loves being immersed in all things tech. Connect with her on BUX: @Stephtrades

Disclaimer: All views, opinions or analysis expressed in articles are that of the author and do not represent the views of BUX. Neither BUX nor the author provide financial advice and these articles should not be construed as such.

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