All You Need to Know About Investing in Bitcoin

Bitcoin is the new investor craze everyone is talking about. Hardly any assets have proved to be as mysterious and alluring as the new digital cryptocurrency has over the last few years, with millions of investors jumping on the bitcoin bandwagon in 2017 and sending its price to record highs. Despite being one of the most volatile and exciting assets on the market, bitcoin has risen from just under $1,000 at the start of 2017 to over $19,000 towards the end of the year. Here is all you need to know about the mystery that is Bitcoin.

WHERE DID IT COME FROM?

Bitcoin is known to be a ‘decentralised’ currency, meaning it is not tied to any central bank or government regulator. It’s a cryptocurrency that has no physical form and it exists only in a set of encrypted code. The creators wanted to introduce a new digital currency that was not regulated and could pass national borders. Bitcoin ‘miners’ crack complex sections of code known as ‘blockchain’ and that can be used as a payment method. The limit introduced by the creators are 21m bitcoins.

In its early days, very few businesses were keen on accepting the new cryptocurrency but as its success has increased, more and more began to take it as an acceptable form of payment. With its growing popularity, its price also rose and in equal measure the criticism and wariness from major financial institutions around the world. People are increasingly beginning to accept the idea of a decentralised currency.

ROLLERCOASTER

In its relatively short life so far bitcoin has experienced more volatility than many of its currency counterparts have seen in several decades. Bitcoin has gone through several rockets up in price that are closely followed by damaging crashes.

Opinions are very varied on bitcoin’s rallies, some believe it’s just another flash in the pan and others that it may be the start towards being recognised as a global currency and viable alternative to centralised systems. Only time can tell.

INVESTING IN BITCOIN

Even though a single Bitcoin is currently heading towards more than $9,300, online trading platforms such as eToro allow users to engage in fractional trading, whereby sellers and buyers can agree prices based on values of less than one full Bitcoin. Like with any other investment, it is key to pick a strategy and stick to it, especially with an asset so volatile as bitcoin. Using the eToro platform, users can also view the actions of experienced Bitcoin traders and replicate their strategies to achieve the best results.

from http://www.livecharts.co.uk/livewire/2018/05/all-you-need-to-know-about-investing-in-bitcoin/

Dow Jones Tussles With April Highs as US Dollar Begins to Retrace

After a mixed to down first quarter the Dow Jones index and US stocks are back on the rise. The Dow Jones price has gained over 1000 points since the low in early May, and is now sitting exactly at the April highs as the middle of the month passes.

The US Dollar finally gave up pushing for a new high in Europe trading session which in turn gave stocks a boost on the opening bell.

Thursday was a positive day for investors with economic data suggesting that the US labour market is in good shape. Inflation data came in weaker than forecast and static unemployment claims both good indications of the state of play across the United States.

Jobless claims remained at 211,000 for the second week in a row which helps keep overall numbers near the 49 year low.

This prompted a positive close on US stock indexes with the Dow Jones up 0.8% and the Nasdaq up 1.02%.

This positivity has held ground into Fridays early trading with the Dow Jones pushing above (albeit slightly) the April highs of 24800.

There is a slight bit of resistance at the 25000 mark, which underlined the lows of early and mid March. However, continued Dollar weakness could help the cause for higher stock prices over the coming weeks.

The US Dollar has been showing incredible strength for the last month but may have topped out for the meantime after hitting the resistance of the underside of the November 2017 lows.

If the Dollar continues behaving as it has for this last year, then a retrace is normally the pattern after hitting a strong support or resistance level.

It could now look for some support below and find a comfortable trading range for the summer months when volume naturally drops off from most currency pairs.

from http://www.livecharts.co.uk/livewire/2018/05/dow-jones-tussles-with-april-highs-as-us-dollar-begins-to-retrace/