Bitcoin allows investors from different parts of the globe to access different trading opportunities. However, this perk also comes with risks. That’s why some traders even take up a cryptocurrency course to navigate through this unregulated market.
Profit Opportunities in Bitcoin
Bitcoin is one of the most trusted cryptocurrency in the industry for crypto trading since it has fixed monetary supply. To date, it has established itself as a revolutionary vision of a decentralized movement of value. What’s more is that it’s free from being regulated or controlled by any authority. The next question is how much one can gain more profit opportunities trading bitcoin.
Benefits of Bitcoin
One of the many reasons why people are investing in Bitcoin is because of its low cost. This cryptocurrency has no intermediary charging transaction fees, making it an ideal option for many. Moreover, it offers the additional benefit of anonymity, since there’s no need to disclose personal identity information in Bitcoin transactions. While this sounds like a good perk, this anonymity also has a drawback as it has become used on the black market. Through anonymity, criminal enterprises are using Bitcoin to transact over the Internet.
Risks of Bitcoin
Because of the recent popularity of Bitcoin, it has become a potential store of value to many. But, it has also led the Bitcoin exchange rate to have enormous gains and experience tremendous volatility. Many speculators want to take advantage of the momentum in price. They would rather invest in this short-term price rather than become long-term users of Bitcoin. This event is also fueling the rise in Bitcoin price. There are also a lot of merchants who had accepted Bitcoin before as a form of payment, but, they have now suspended its use due to the pricing volatility.
Lack of Oversight and Regulation
Another issue in this industry is the lack of regulatory oversight. This means that getting Bitcoins on the secondary market may not be a solid decision, considering that you may experience transaction periods to buy and sell Bitcoin. The transaction periods can take up to 5 days. Moreover, there are many of the wallets which serve as trading platforms called Wallets that crash during periods of high volatility because of high traffic.
Limited Transactions Capacity
The limited transactions capacity is another drawback to consider. Although there are other traditional transaction platforms which service high volumes, one of Bitcoin’s risks is the limited transaction volume. It can only offer up to seven transactions in every second. Because of this, many think that it will be hard for Bitcoin to be a dominant player in the global payments market.
Limited Number of Bitcoins to be Mined
Back when Bitcoins was established in 2009, its original coding has limited the number of possible Bitcoins to mine by to 21 million. To date, there are about 16.8 million bitcoins in existence. As of February 2, 2018, it is valued at a total market capitalization of $146 billion. This happens as the volume of new Bitcoins being mined is reducing each year and the complexity of mining them increases.
If you want to take your career in bitcoin trading in Singapore to the next level, contact Crypto Trader today. They offer crypto courses designed to help you learn about proven and tested strategies straight from a crypto-trading expert. Check out their website for details.
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