The Bitcoin crash during the first months of 2018 has been a big disappointment for many people. A lot of us were thinking this asset would have grown forever, but it wasn’t the case. Because of the bitcoin crash many people lost some money, but it doesn’t mean that cryptocurrencies are a scam.
Cryptocurrencies and volatility
A cryptocurrency is not a scam, but it is a virtual currency which has been involved in a lot of volatility in the last months. To trade cryptocurrencies it’s necessary a lot of experience in online trading and a good risk management plan.
What does volatility means? It mean that in a shot period the market can have big changes growing up or dropping down. If the Bitcoin price grows of the 4% in one day, it won’t bring too much change, but if it grows of the 19%, as it has happened, the market can be defined very volatile.
A volatile market faces many price changes in a short period, and this has been one of the reasons many people lost some money on their trading activity.
The Bitcoin crash causes
Many analysts blame the pure speculation to the bitcoin crash. This means that in their opinion the only explanation to this crash has been the fact that few rich and powerful bitcoin owners sold their cryptocurrencies on the beginning of 2018 and cause the price drop.
Assuming that this theory can be true, on the other hand it should be analyzed also the reason of this decision of selling everything. The answer to this question is not clear yet, but for sure the new cryptocurrencies regulations introduced around the world and mainly in China have influenced traders decisions.
Finally also many European authorities are discussing a lot about the introduction of new regulations for cryptocurrencies and ICO in order to make this world more transparent. Altough nothing is official yet, these rumors which will effect the encrypted factor of all the cryptocurrencies might have influenced many bitcoin owners who traded in this market because of its safety and privacy.
What to do now?
In front of this situation many crypto buyers moved a new reality and became cryptocurrencies traders. In this case, through a CFD it’s possible to speculate on the bitcoin price either buying or selling. This means that also during the bitcoin crash many traders earned some money investing on the cryptocurrency drop.
To learn more about cryptocurrency trading and how it works, please click here.