Wednesday, January 15, 2014

The Three Main Risks

       The Three main risks I see in Bitcoin trading are Volume of Bitcoin available sometimes the amount of BTC available can be kind of low. If this is the case you could cash out for fiat currency, and a "Well" (Big investor) could come on and buy all the BTC. This is a problem that would make it hard to get back in, because when there are BTC available you would have to wait in line to be able to buy them, and the price WILL go up simple supply and demand. The second is when you cash out and you are holding fiat currency you risk the price jumping extremely high, and then you can't buy back in with out losing a lot of money. Now the third risk is that when you cash out for BTC over night the price could drop to an extreme low, however this is not the worst thing that could happen if you cashed out your earnings the day before because you have that money in your pocket. The other positive side to that is you can still trade, and we have seen time and time again in the past few months that even with these big "corrections" to the price you still can trade, and the price will usually come back so you would be making a killing! Share +1 Enjoy Hunter Maxwell 

No comments:

Post a Comment