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December 17, 2015

What to Do with Bitcoins These Days?

Currently BTC price is jumping up and down and this is mainly caused by the rising demand for this crypto currency from China. The core reason behind this is the presence of a notoriousponzi scheme called MMM and its rising popularity in China. Let’s take a look at the daily BTC/USD chart below.

As you can see, the price has started to grow as of October but on the first of November the price started fluctuating so much that engaging in trading would rather be seen as a Bitcoin gambling.
Bitcoin bubble
Such enormous fluctuations tell us that today we are in the time of a Bitcoin bubble and the forecasted rate can hardly be predicted. It is possible to see that the BTC/USD price will hit the mark of 1000 USD per coin in the next few weeks, it is also possible to see the price of this crypto currency to be as low as 0 in just a few days. However, we should advise you that trading BTC in such environment is highly not recommended, even though it seems quite promising.

As you know, trading is risky and while the whole volatility presumes quite significant risks, which is compensated by the returns, there are more risks during the bubbles. The most important one to keep in mind is that an exchange can always go down in such times and your Bitcoins can disappear in a moment. This is why you should keep your coins on your hard drive, not on the exchange.
What to do with BTC then?
There are a few possible things you can do with Bitcoins when trading is not viable. The first thing that you may consider is to use BTC as a mean of payment. While the exchange rate of Bitcoin to dollar is high, you can benefit by purchasing items using your BTC instead of paying with your mastercard or a visa.

Alternative you can just have some fun with your coins and try Bitcoingambling in one of the places that support BTC deposits and offers poker, roulette, binary options or anything similar that does not require much knowledge and can be profitable in the same time.

Another option may sound like a Bitcoin gambling to you after you read our previous tips, but this is actually a good method of cashing out your BTC. Once you have placed your coins on your hard drive, you would need to send a little amount (some 0.1-0.3 BTC) to the exchange and request a withdrawal. This way you can easily take out your Bitcoins with an attractive rate while you will not be risking your whole portfolio.

If you are into trading, you can always find a broker that accepts BTC deposits while having funds protection. Many of these brokers would support both BTC and USD accounts and also offer internal transfers. This way you can perform a BTC deposit to your account and then transfer the coins into a USD account. Should you want to “close” your trade, you would then send the dollars back to the BTC account. This way you can safely trade with a licensed and regulated broker that offers you a guarantee for your deposits. 

The views and opinions expressed herein are the author's own, and do not necessarily reflect those of EconMatters. © EconMatters All Rights Reserved | Facebook | Twitter | Free Email | Kindle

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Item Reviewed: What to Do with Bitcoins These Days? Rating: 5 Reviewed By: EconMatters