Bitcoin VS Stocks and Forex: Which Means Trade the Most Good?
Stock VS Bitcoin
The Indonesia stock exchange defines stocks as securities traded in the capital market where the people who become shareholders will get the chance to earn dividends and capital gains (the profits that we earn when selling a stock is higher than the purchase price). The acquisition of a capital gain is what usually makes people think that sell buy Bitcoin the same is the case with stocks because they profit from the difference in the selling price with the price when they buy Bitcoin.
The price movement in the stock is influenced by the performance of the company such as increase/decrease in profit and sales, dividends, or the news spread in the public about the state of the company. In the world of Bitcoin, the price of the unit is also very influenced by the same thing: the increase and decrease of demand, as well as the press circulating in the community. Still remember how bad news about a fatal error in the management of the Mt. Gox caused a slump in the price of Bitcoin? Compare the stock price of PT Bumi Resources Tbk (BUMI) belongs to the Bakrie fell by 73% in the whole year of 2014 because the company can't service its debt obligations. You can see the resemblance in both cases.
Forex VS Bitcoin
Forex (Foreign Exchange) or Forex (Foreign Exchange) is a type of transaction that trades a country's currency against the currencies of other countries with the purpose to get profit from the difference in the value of the currency. Equation stocks and Bitcoin, it can also be found in the world of Forex where traders avail the opportunity to buy the foreign currency when the price is still cheap, and resale at a higher price.
The movement of the price of the third it is influenced by supply-demand, and the community can predict the direction of price movement with the methods of technical analysis (see chart and pattern of price movements in the past) or fundamental (see the intrinsic value or the situation and condition of the company). Using the method of any analysis, no prediction can be right 100% because the price of stock, Forex, and Bitcoin can be changed at any time when things happen that are unexpected. As an example in the world of Forex: when 9/11 happened, rate USD to fall because everyone predicted that such events will have an effect on the weakening of the USD value. This incident caused many market participants to sell the USD so that eventually the rate of the USD actually dropped drastically.
With an average daily volume of US$2 trillion, the Forex Market is 46 times larger than all the combined market shares and therefore called the market the most liquid in the world. If compared with Forex, the Bitcoin market is still relatively small market so the price of Bitcoin tends to be easily changed (5-7 times more volatile than Forex) when a party to buy or sell Bitcoin in large numbers.
Bitcoin VS Stocks and Forex: Which Means Trade the Most Good?
Forex, stocks, and Bitcoin has its own advantages and disadvantages. Options trading tools best can only be determined by each of the personal with the calculation. Keep in mind that trade Bitcoin tend to be more risky because the price is more volatile compared to the two other markets, but the potential of Bitcoin is far greater than both.
Bitcoin is more similar to the stock compared to Forex in terms of assets, but unlike stock or Forex, investors in the world of Bitcoin do not need to rely on third parties or brokers. You do not need to fear that someone will run away with Your money as long as You quickly pulled the Bitcoin You have to the wallet personal. In addition to investment, Bitcoin can also be utilized for a variety of other things such as the process of sending money faster with transaction costs very low, the tool hoard wealth that is more secure, as well as payment instruments more efficient modern.
Since there are already a lot of trade exchange where we can sell or buy Bitcoin with a price that is desirable, the traders usually buy the Bitcoin in the market is cheap and sell it at the trade exchange of the country other demand against the Bitcoin is higher than the market where they buy. Some Bitcoin market typically have their own price. For example, the movement of the price of a Bitcoin in indodax.com only influenced by the process of buying and selling that occurs in the Indonesian market only with the use of Rupiah currency. In other words, if demand in the Indonesian market is bigger than in the Chinese market (in the trade exchange BTC-China, for example), then the price per Bitcoin in Indonesia will be more expensive when compared in the Chinese market. Traders can take advantage of this opportunity to add to profit in a short time with the how to buy Bitcoin in the Chinese market and sell in the Indonesian market.
Let's say, You buy Bitcoin in the European market Bitstamp for $350/Bitcoin, and intend to resell it with higher prices. When You check the price of an hour later at Bitstamp, the price dropped to $349/Bitcoin. At the same time, in the market indodax.com, the price of Bitcoin reached Rp 4.500.000 or the equivalent of $364/Bitcoin because of the demand of the traders of Bitcoin in Indonesia is higher than in the foreign market. You will get profit if sell Bitcoin in indodax.com at that time because the price is high.
We need to remember that the Bitcoin was originally created not as an investment tool, but as a new payment method in the world financial that utilizes decentralized technology to avoid human error that can often be a source of problems, such as: inflation, corruption in financial institutions, or third party/brokers who run away with Your money. Bitcoin is used as a tool of investment because the price is volatile, and seeing the supply limited, a lot of people who think that the Bitcoin price in the future will increase drastically. But everything is just prediction alone. No one can guarantee whether the Bitcoin price will bounce back to a price of $1,000/Bitcoin or back to $1/Bitcoin. We can assure you is Bitcoin is the first technology that can revolutionize the financial world, such as what happens when the Internet first appeared in the community.
Whether You are ready to be part in this revolution?