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Where to Trade Bitcoins

How can you trade Bitcoins?Have you heard of the Bitcoin yet? If you haven’t you are way behind the times. The Bitcoin is a completely digital currency that was first established in 2009. Since then, it has grown considerably in value. The latest sign of this is the financial release that has come out recently from the Bitcoin Investment Trust (BIT) that revealed that $65 million has been raised by this fund in the last two months. For a currency that is only four years old and has no tangible existence, that’s a pretty impressive number.

The fund is structured like an exchange traded fund (ETF), but it is not available for public trading yet–much like a hedge fund. There are some big barriers to entry right now, such as the fact that investors must prove that their net worth is over $1 million, or that they earn over $200,000 per year on a consistent basis. Also, the minimum investment amount is currently priced at $25,000. These things definitely rule out many traders, but that doesn’t mean that you cannot take part in the action. There are still a couple things you can do if you desire to get involved in Bitcoin trading action.

The most obvious way is to actually start purchasing the digital currency. This is actually a lot more difficult than it sounds. In order to prevent dilemmas that other currencies face–such as inflation–by limiting how the currency is produced. There are ways to earn fractions of Bitcoins here and there, such as through mining softwares, but these are negligible at best.

Right now, binary options are one of the easiest ways to trade the Bitcoin. This is especially true if you look at some of the longer binary options timeframes. For example, on November 11th, the Bitcoin was valued at $361 for one unit. A month later, the Bitcoin was at $920. This is obviously a huge growth, but unless you were lucky enough to have had the foresight to invest in Bitcoins early, odds are you won’t be able to get a full unit for quite a while. Instead, with binary options brokers such as Anyoptions, you can start out with as little as $10 in some instances, and still see big growth.

Day trading the Bitcoin in a public ETF is still a few years away, and trading Bitcoins in the Forex market might never happen, but you can get started with short term binary options today, if you wish. Many brokers offer a wide range of short term choices for you to trade.

The other thing to note is that Bitcoins, and the BIT in particular, do not yet have any lasting power. The currency is only four years old, and it technically could disappear at any time and leave investors in a lurch. This makes long term investing a lot riskier than short term investing, actually, despite the interpretations of these trading outlooks that currently prevail. The Bitcoin has not yet made itself publicly available in a traditional market for short term trading, though, so if you want to do this, you will have to go through a secondary market.

Still, many experts point to the negatives of Bitcoins. There has been a bit of illegal activity with them in the past, such as with the service Silk Road which was shut down by the FBI this past year. These are only singular events and do not point to the usage of the currency as a whole. The currency is becoming more and more established in the marketplace and is being used much more often. It’s inevitable that bad uses will occur, but good ones are going to grow even faster, thus gaining more credibility for Bitcoins into the future. Unlike trading Twitter we’ll have to wait a little longer.

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