Less than a month after BTC broke past the $50,000 mark and pushed its market cap above $1 trillion before dropping to the $44,000 level, it has re-entered the zone again. The initial drop had something to do with traders taking profits after BTC managed to register a new high of $58,000. Experts predict the top coin can go as high as $100,000 by the end of the year thanks to institutional investors and leading companies’ continued interest. Price increases also see renewed interest from retail investors, with those less experienced with the market likely to get in when the price is surging, and there is a lot of buzz surrounding the coin.
The problem is experienced traders will take profits once the price gets to certain levels and catalyzes price consolidation. Weak hands that got in while the price was high will start selling, leading to a drop in price before experts buy the bottom again and wait for the momentum to build, then the cycle repeats itself. However, one trend that is apparent this time around is each cycle leads to the price of BTC getting to a higher level than it previously had managed.
Bitcoin’s best use case
The rising price surge has many even wondering what the best use of bitcoin is? Since the coin came around as peer-to-peer digital money, doesn’t it mean it should be used for everyday transactions like paying for coffee or even bills? It’s not like the digital currency isn’t used for these purposes, but its value is driven by market demand, making more sense to hold on to the coin rather than spend it.
Imagine Laszlo Hanyecz, who spent 10,000 BTC to buy two large pizzas. Had he held on to the coins, they would be worth over $500 million today. This is the exciting thing about Bitcoin and other digital assets. The birth of cryptocurrencies has led to the creation of a whole market worth over $1.6 trillion with over 8,700 digital assets. Not only can they be used to exchange value, but they can also store value. They are tradable assets that can make users profits. Take an example of Bitcoin that is available to be traded on various platforms.
All you need to do is fund your account with fiat, and you can purchase the asset. Other platforms will allow you to trade one crypto for another, and the swap occurs automatically. However, you will need a wallet to store this asset once you buy due to the risk of losing the coins if the platform you opt to use is breached.
If you don’t want to go through much stress of finding wallets to store your coins and other complications of handling the actual asset, you can opt for platforms like PrimeXBT, where you can trade crypto CFDs still earn from the endeavor. It’s the easiest form of trading since it doesn’t require much, and you will be dealing with derivatives of the primary asset. Additionally, your funds get a boost which increases your exposure in a given market, tremendously growing your profits compared to trading the actual asset.
Difference between various trading platforms
The difference between platforms such as PrimeXBT and the regular crypto exchanges is that the former allows one to profit more often and with better margins than the latter. You can speculate on small price movements, either positive or negative, and earn profit with ease.
With Bitcoin crossing the $1 trillion mark for the second time, there is a feeling it can go as high as $75,000 in the short term, according to Rich Ross, Evercore ISI strategist. Only three months into the new year, BTC has already surged 87% and over 600% over the past year.
The growth is expected to continue as more large institutional investors join the likes of Tesla, Microstrategy, Square, and others continue investing vast chunks of money in Bitcoin. Last month in a letter addressed to the SEC, Tesla, the leading electric car manufacturer, revealed that it had invested $1.5 billion in Bitcoin. The move was to boost the performance of its cash reserves. Now there are rumors the likes of Apple and Netflix could follow suit. If this happens, then expect to see the price and demand of this asset get to crazy heights.