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It projected negative results for EOS, setting a target price of $3.6 USD for the year, 2021. The Wallet Investor website, which performs automatic analysis according to various technical indicators, releases a bullish estimate for mid-2020, where EOS could rise to $7. However, it would fall again towards the second end of the year, reaching. — Matt D'Souza, CPA (@mjdsouza2) April 26, 2020. Meanwhile, the Altcoin market shows a strong correlation with the trend of Bitcoin, with XRP increasing by 2,07% to $0,195, ETH by 1,72% to $194,23 and IOTA by + 2,05% to $0,1718. Within the top 20 largest cryptocurrencies, Cardano shows the largest gains with a price increase of 9.16% to.
A Unique Design and Focus
IOTA’s DAG is called ‘The Tangle,’ which is the network’s method for settling transactions across a distributed network of permissionless users. IOTA does not have miners nor stakers for consensus; instead, The Tangle is a method for interlinking transactions across a transaction graph where an incoming (i.e., new transaction) requires at least two verifications from previous transactions that are linked to it. The concept is based on a mathematical model called the Markov Chain Monte Carlo.
The Tangle is a complicated topic, and more in-depth information on it can be found through the IOTA white paper.
The Tangle enables IOTA to scale to theoretically limitless levels of transaction processing, which would be necessary to support a future world ecosystem of interacting connected devices. However, like other projects in the sector, IOTA faces criticisms for the feasibility of its network’s security model.
IOTA is an open-source project primarily written in Java, with a bulk of the team (i.e., the IOTA Foundation) based in Germany.
- What is Forex
- Vanilla Options
- Cryptocurrencies
- Bitcoin Trading
- Bitcoin Gold
- Bitcoin Cash
- EOS Trading
- Ethereum Trading
- IOTA Trading
- Dash Trading
- Litecoin Trading
- Ripple Trading
- NEO Trading
- Stellar Trading
How to Trade Bitcoin CFDs in 3 Easy Steps
- Open a trading account with AvaTrade
- Fund your account
- BUY Bitcoin (go long) or SELL it (go short)
AvaTrade is an industry-leading broker, with some of the most competitive conditions available, including very low Crypto spreads.
Want to join the vibrant Bitcoin market? Open a trading account with AvaTrade now!
The Journey of Bitcoin
On Halloween of 2008, the Bitcoin white paper, describing a peer-to-peer decentralised digital currency, hit the headlines. A monster was born! It was a revolutionary idea that promised to shake the financial world in the same manner that the Internet shook the smart computing space.
Bitcoin was a digital currency that promised security and integrity of transactions. It would be manned by no central authorities, such as governments or central banks, and as such, it promised to open its doors for the unbanked global population who could send money within minutes.
The idea was genius, and the timing was perfect. The world was in a global crisis triggered by financial deregulation, and as a result, Bitcoin offered hope for the future.
Bitcoin was as mysterious as its founder, Satoshi Nakamoto. The first-ever cryptocurrency was intended to be the future of money but as soon as Satoshi ‘disappeared’ around 2011, his peers quickly understood the unique potential that cryptocurrency held in the world of investing. The quality of cryptocurrency as a store of value emerged.
In late 2009, $1 was the equivalent of over 1,300 Bitcoins. From being valued at a fraction of the dollar, one Bitcoin crossed the $10,000 valuation price point within 8 years – an abnormal rate of return by every measure.
By late 2017, Bitcoin became a household name as it flirted with the $20,000 price level. Bitcoin, alongside other cryptocurrencies, was now a must-have in the portfolios of every investor.
Late investors, however, watched in horror as the entire crypto market retraced after years of incredible gains by 2018. Cryptocurrencies became mainstream financial assets though, and the pullback would later prove to be short-lived.
At the beginning of 2020, the coronavirus pandemic struck the entire world. Economies around the world were literally shut down as governments instituted curfew and lockdown restrictions.
As other financial assets dwindled in value, Bitcoin and other cryptocurrencies sprung to life. Bitcoin proved to be the proverbial ‘digital gold’ and its value rose from lows of around $4,000 in the Q1 2020 to over $23,000 in December of the same year, smashing the previous highs printed in late 2017. In a year that investor portfolios suffered the effects of COVID-19, Bitcoin provided the much-needed cure!
We offer you the ability to trade Bitcoin on both MetaTrader 4 and MetaTrader 5 platforms, where you can trade it against the US Dollar, and other currencies 24/7.
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Understanding Key Factors Influencing Bitcoin Price
Like any financial asset, the price of Bitcoin is dictated by the laws of supply and demand. Bitcoin has always been compared to gold in this regard, in that there is a finite number of coins that will ever be available. Beyond that, market participants will, over time, determine the fair value of Bitcoin depending on its use cases and adoption.
Another major price influencer is media coverage. In its early years, the price of Bitcoin was constrained as the media branded it a passing cloud and a coin for the dark web.
In this age of social media, such negative coverage can scare potential investors. However, positive media coverage of both Bitcoin and its underlying blockchain technology has provided favourable fundamentals for the foremost cryptocurrency and emboldened investors.
Bitcoin trading may be decentralised, but the power of major governments around the world cannot be ignored. Bitcoin has been the subject of frequent changes in regulation in various aspects, including taxation.
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Part of the reason the price of Bitcoin fell sharply after the highs of late 2017 was massive regulatory pressures from China.
But regulation is not necessarily a negative fundamental. In some instances, positive regulation serves as a tool to legitimise Bitcoin as a mainstream financial asset, and this can lead to increased demand.
Bitcoin’s price is also influenced by what happens within the Bitcoin community. Part of the reason the price of Bitcoin surged during the COVID-19 pandemic can be linked to the halving that happened in May 2020.
Bitcoin halving is when the reward for mining Bitcoin is halved. This theoretically limits the supply of Bitcoin as the incentive to mine is reduced. With supply limited, demand increases, and the price of Bitcoin increases as well.
Buying Bitcoin
There are different ways to buy Bitcoin and gain exposure to the opportunities this exciting asset provides. There are crypto exchanges that allow investors to buy Bitcoin using credit/debit cards or bank transfers.
Exchanges were initially the only way to buy Bitcoin, and they have evolved as the foremost cryptocurrency has attracted interest globally.
When you buy Bitcoin via an exchange, you will be required to open and secure a crypto wallet. You will fully own the coins and can benefit from forks that generate ‘dividends’ for Bitcoin holders.
There are also peer-to-peer Bitcoin exchange sites where people trade Bitcoin for cash between each other. These sites have grown in popularity because they match local traders who can conveniently exchange Bitcoin using local payment methods.
Peer-to-peer Bitcoin trading sites usually offer the coin at premium prices (higher than the market spot price), but they are easy and convenient for anyone to use.
There are also Bitcoin ATMs that resemble traditional ATMs. However, they are not connected to any bank, but rather to a Bitcoin wallet or exchange. Bitcoin ATMs allow investors to buy Bitcoin with credit/debit cards as well as cash.
In most cases, it is easy to locate Bitcoin ATMs near you using maps. While this may increase convenience for some, many Bitcoin ATM users have lamented the high fees charged (usually more than 5%).
With Bitcoin becoming a mainstream financial asset, investors can also be exposed to its price changes by trading Bitcoin derivatives like CFDs and the crypto10 index.
In this way, investors do not own Bitcoin, they only speculate on its price changes. If you buy, you earn profits when prices go up; and when you sell, you earn profits when prices decline.
Bitcoin trading via derivatives is attractive for many investors because it allows for profits to be captured whether prices are rising or falling. Derivatives can also be traded with leverage, which makes it possible to gain bigger profits when prices move in your favour.
So how should you buy Bitcoin? This entirely depends on your investing goals and ambitions. When you buy Bitcoin via an exchange, ATM, or a peer-to-peer trading site, you are essentially a HODLer.
“HODL” is a term in the bitcoin community that means holding the coins for a long term. You essentially believe in the future of bitcoin and will never be concerned by periods where the price is declining. You are in for the long haul and will cash out when you reach a predetermined target or when it makes sense to do so.
But if you are a short term, active trader, derivatives such as CFDs will suit you better. Bitcoin is generally a volatile asset whose prices fluctuate wildly. This means that short-term bitcoin traders are exposed to more opportunities when the prices swing between different highs and lows.
Why Trade Bitcoin with AvaTrade
At AvaTrade, you can trade Bitcoin as a CFD. Here is why you should trade Bitcoin with us:
- Security – As a CFD brokerage firm, we do not provide crypto wallets to store your Bitcoin. We simply provide access to intuitive platforms for you to trade real-time price changes of Bitcoin. We are also regulated in various jurisdictions around the world, which ensures that we comply with the highest standards of safety, including holding customer funds in segregated bank accounts.
- Leverage – We offer a leverage of up to when you trade Bitcoin or any other cryptocurrencies. This means that you can extract and maximise your trading during marginal price changes or when you have limited capital.
- Choice of Assets – Alongside Bitcoin, we also offer a selection of other coins and tokens that can be top additions to your portfolio. They include Ethereum, Litecoin, Dash, IOTA, NEO, Stellar Lumens, Ripple, EOS, and Bitcoin Cash.
- Lower Charges – We enable our clients to trade Bitcoin at competitive spreads. This is because, unlike exchanges, we do not need to charge miner fees or other transaction costs.
- Faster Transactions – Open and close Bitcoin trades in an instant. We are backed by multiple, large liquidity providers which makes it possible for us to guarantee fast execution on all Bitcoin trades.
- Trading Platform – Trade Bitcoin on world-class trading platforms such as MetaTrader 4 and MetaTrader 5. Our platforms are advanced and stable, and investors can trade Bitcoin using numerous advanced order types such as limit and buy/sell stop. We also support automated trading strategies as well as offer numerous technical and fundamental analysis tools.
- Trading Resources – Bitcoin is an exciting yet volatile currency. This is why we offer various handy trading resources to help stay on top of your Bitcoin trading. We have a comprehensive education section where there are numerous relevant crypto eBooks and videos to help you gain the necessary knowledge to navigate the crypto market. We also have an Economic Calendar that will help you stay on top of news and events that may impact your crypto portfolio.
- AvaProtectTM– Trade Bitcoin with the exclusive AvaProtect risk management feature. This unique feature gives you your money back on losing trades during the protected time period.
- Trading Central – Identify the best technical setups on your Bitcoin chart using Trading Central which is integrated on all our platforms.
- Multiple Pairs – Trade Bitcoin vs. various fiat currencies and get exposed to even more trading opportunities via arbitrage.
Bitcoin in the News
- November 2012 – WordPress started accepting bitcoins
- November 28ᵗʰ 2012 – First Halving Event took place. This is where the amount of mined Bitcoins was halved, causing half the rewards for miners, for performing the same amount of work. It also prompted an increase in the price of Bitcoin over time.
- July 2013 – Launching of a joint project in Kenya, linking bitcoin with M-Pesa, a popular East African mobile payments system.
- September 2014 – TeraExchange, LLC, received approval from the U.S. Commodity Futures Trading Commission to begin listing an over-the-counter swap product based on the price of a bitcoin, marking the first time a U.S. regulatory agency approved a bitcoin financial product.
- March 2016 – The Cabinet of Japan recognised virtual currencies like bitcoin as having a function similar to real money.
- July 9ᵗʰ 2016 – Second halving event
- August 1, 2017 – First fork in Bitcoin was created: Bitcoin Cash
- October 24, 2017 – The second fork in Bitcoin was created: Bitcoin Gold
- December 10, 2017 – CBOE Futures Exchange (CFE) starts offering Bitcoin futures trading
- December 28, 2017 – Third fork in Bitcoin created: New coin on SegWit2x chain called B2X
- May 11ᵗʰ 2020 – Third Bitcoin Halving Event
- Expected 2024 – Fourth Bitcoin Halving Event
Need Help Trading Bitcoin?
AvaTrade offers you the opportunity to BUY (go long) or SELL (go short) on all Bitcoin trades. This service is available to you 24/7. You can use your preferred trading strategies to buy or sell Bitcoin CFDs regardless of which way the currency is moving.
We encourage you to learn more about Bitcoin trading by visiting our Trading Conditions & Charges page.
Please note: The Cryptocurrency market’s high volatility can offer ongoing trading opportunities.
Due to price fluctuation, certain Crypto pairs may be suspended and/or removed from our trading platforms periodically.
When trading with AvaTrade you are trading on the price changes of the digital coin, and not physically purchasing it.