CMTrading chairman Daniel Kibel says join the Bitcoin rollercoaster ride with caution
Bitcoin has reached a record high in 2021. As the cryptocurrency increases in popularity traders should be aware of the potential pitfalls.
Bitcoin traders are facing rapid price fluctuations in 2021; the cryptocurrency hit highs of $53,000+ to multi-month lows to trade below $30,000. Analysts believe Bitcoin could reach $55,000 and beyond.
CMTrading Chairman, Daniel Kibel, shares his thoughts on Bitcoin and investing in cryptocurrencies.
Kibel said, “As Bitcoin continues to climb, investors are eager to see just how high it can go.
“The biggest influx of investment comes as more mainstream companies such as MasterCard and Tesla utilize cryptocurrency, increasing the legitimacy of the market. Crypto is definitely the market to watch this year.”
Huge rally, gaining legitimacy
Bitcoin’s incredible 400% rally over the past year comes at a time of near-zero borrowing rates from central banks and massive stimulus from governments still dealing with the coronavirus pandemic.
Earlier in February 2021, banking giant, Mastercard, announced it will support “select cryptocurrencies” on its network, a major boon for the legitimacy and mainstream acceptance of crypto.
Another boost for crypto is BNY Mellon, the US oldest bank, announcing it had formed a “digital assets” unit.
Kibel said, “Once considered the wild west of trading, Bitcoin is becoming more mainstream. This means increasing scrutiny and tighter regulations from regulatory bodies.”
“The profit potential can be great for professional traders, but the reality is that the market direction isn’t always clear, and this is particularly true for cryptocurrencies, which are considered one of the most volatile financial assets.”
The risks
All tradable financial assets carry a certain degree of risk. Bitcoin has seen incredible price hikes but has also wiped-out billions this year.
So, should you invest in Bitcoin?
Kibel says, “If you want immediate results in relative safety, then trading through a regulated forex broker such as CMTrading is likely the best choice. “
The volatility of crypto is one of its best and worst attributes. The volatility is what makes Bitcoin such a favourable market to trade.
Developing a sound trading plan with risk management strategies is critical to protect your investment in the long-term.
“Never invest money you aren’t prepared to part with. Developing a viable trading strategy, studying trends and partnering with a reputable and regulated broker will help you make the most of trading crypto.
It’s easy to see why Bitcoin is so attractive, however, trading such a volatile market without the necessary knowledge and experience can be extremely risky.”
How to start trading cryptocurrencies
CMTrading provides clients with an attractive crypto offering that includes the four major cryptocurrencies under 5:1 leverage.
Clients get access to cryptocurrency trading through CFDs (Contracts for difference), which allows traders to benefit from speculating on assets regardless of rising or falling prices.
Start trading Bitcoin, Ethereum, Ripple and Litecoin with CMTrading today!
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