Bitcoin is all over the place, one minute it is way up and the next it is way down and that seems a little strange.
But if you consider that the crypto market is still somewhat sketchy in many places in the world then it is still likely that manipulation is playing a role in the cost and the price of BTC every day.
This has been discussed in many online forums as well as some large brokerage firms. There are many issues with trading in Cryptocurrency and one of the biggest is being performed by the so called “Bitcoin” Whales, (owners of large sums of bitcoin) Allegedly what they do is to use more than one exchange to play trades against each other to do one of several things. They want to push the price up high then cash in stockpiled bitcoin. It is a cycle that they repeat over and over again.
They force the price lower, buy up a large amount of bitcoin then they push the price up high and sell.
This would not be legal in most of the world.
What it does is to deprive the average person from trading in a profitable manner.
Normally you could use various tools to somewhat accurately predict prices of course this is hit and miss as are most investment strategies however in normal trading situations the average or above average trader can generate a profit.
Since things are not normal and it does not appear that they will be normal anytime soon the average trader is losing money and the exchanges are benefiting from that as well.
So, the Exchanges are seeing this (allegedly) and they are not doing anything about it.
This could create some real problems for the Crypto Currency market in the future as well as the present.
When you consider that exchanges are allowing bad behavior by big traders who are “bending” the rules as well as outright manipulating the price, rise and fall of BTC and other Crypto products then that will eventually force governments to address these issues.
When that happens BTC will lose value.
The big players will not be substantially hurt because they are already wealthy it will be the average guy and the hopeful average person that gets really hurt.
People are even now using credit cards to buy Crypto in the hopes that they can make money with it.
Running up high credit card bills then losing money will result in defaulted payments on high interest cards.
This will cause more action by more governments.
The longer that the exchanges allow this to continue the more loses will be generated and exposed to high risk.
In reality this is greed.
Yes, one of the Seven Deadly Sins…
The Exchanges are getting rich from trades.
These big traders are getting rich from buying selling and manipulating the price of BTC.
While the average person is getting taken to the cleaners.
It would seem that the exchanges would have a “vested” interest in cleaning up their allegedly “dirty” dealings.
But as it goes with so many situations these days until they are made to see the “light” they usually do not make any changes.
Knowing that this is going to happen and likely sooner rather than later the idea of investing in bitcoin for profit is not going to be a lasting thing.
People should be made aware that the price of BTC could drop drastically overnight.
They could in fact lose all of their money in just one night.
Naturally there will always be people interested in taking extreme risk in the hopeful anticipation that they might get rich.
The real truth is that the time for getting rich on Bitcoin has really all but passed into the history books, (depending on who writes them) now what we have are people who are taking all the air out of the marketplace for their own benefit and that is not a good situation for anyone.
There are however a few things that you can do if you are just OCD on this idea of making money with BTC.
One of them is to use a BOT, Basically a Robot that trades for you far faster than you can do so for yourself.
This is not financial advice, if you are looking for good financial advice hire a professional with a proven track record.
There are a lot of different products out there.
Some are better than others.
Many are expensive and are no better than any other product out there that are not as expensive.
Because the market is not normal these trading tools or robots are not as effective as they were in the past.
But you can still benefit from using one of these.
What you really have to do is to set the robot up and just walk away.
I know that sounds crazy but that is really about the only way to really get out of the buy sell buy loop.
Unless you have nerves of steel it is better to just let the robot do its thing, it is slow but over time you will see a trickle of profit.
What happens to most people is that they get scared.
They let fear push them into selling their positions off because they think that the value may go so low that they will lose too much money.
To be honest that is a possibility.
For many people it has become a reality.
To really do this you have to say ok, I have X amount of money that if I lost it the only thing that would happen is that I would have some lasting regret.
That is the only way to look at it.
IF you need the money because it is part of your retirement program then do not invest it in bitcoin.
It really does have to be disposable income.
Money that you could lose and not find yourself in a bad financial situation. Never take money that you need for investing it is the root of all downfalls.
Just remember this is almost like walking into a casino and hoping to win a million dollars.
Most of the time that is just not going to happen…