The Gig Economy: The Pros and Cons of Trading in Bitcoin

“One topic that has been hot off the press for a while now is that of cryptocurrency. Many online financial marketing traders have the same question on their mind – is it safe to trade with bitcoin?” This is the question posed by Sam Turner, a senior financial analyst at Olsson Capital at a recent conference. Before answering that question, we first need to have a look at some of the pros and cons of trading in Bitcoin.

Con 1 – Bitcoin trends do not last forever

Many online financial marketing traders are under the impression that the price of Bitcoin will just keep rising. With that in mind, they invest in Bitcoin and hope to keep pocketing profits. If you are a professional trader, you should know that trends do not last forever and the currency can drop in price just as quickly as it has risen as it is a highly volatile currency.

Con 2 – Uncertainty in Bitcoin scares off traders

Another con of this currency is the uncertainty it carries. In a recent hard fork, the currency split in two – Bitcoin and Bitcoin Cash. The sheer uncertainty about the currency’s future and when the next hard fork will be coming sends shivers down some trader’s spines, and they tend to stray away from it.

Con 3 – It is in conflict with the rest of the financial world

With the rise of a new currency, places such as established banks face huge financial knocks. With this, huge banks and financial establishments associated with banks try to eliminate the use of Bitcoin as a whole. This not only creates friction between Bitcoin users and banks but also between the economy and political institutions.

Pro 1 – Bitcoin brings hedge funds to new light

When the economy is in recession, you still have the option to trade with Bitcoin by means of hedge funding. This gives you the ability to make profit even when other markets are taking a turn for the worst.

Pro 2 – With the growth of Bitcoin come huge opportunities

Bitcoin has been the face of many heated conversations over the past couple of months and with each debate, new opportunities arise. A little while ago, one was not able to convert one’s Bitcoin into cash. Now you are able to convert your profits into cash as you would be able to do when trading on traditional markets.

Pro 3 – Bitcoin breaks the control over high fees

When looking at the bigger picture, trading with Bitcoin can solve a huge number of problems all over the globe. Banks charge immensely high fees for transactions and so does brokerage firms. When trading with Bitcoin, the cost of transacting is cut to a huge extent. As it is a currency that is not controlled by any financial institution, the middleman is eliminated, making trades and the fees thereof more manageable.

Pro 4 – Capital control

Some countries such as Argentina made it nearly impossible to move capital to or from the country, thus making trading in those countries something that is not done. When trading with Bitcoin, these countries do not have as much control over capital as in the past. This makes trading easy in these parts much easier, which, in turn, brings new trading opportunities to traders.

If you look at the above-mentioned pros and cons of trading in Bitcoin, it is evident that the currency is still in its infancy and needs to develop into a more solid and trustworthy form of capital. However, the online financial market traders who can handle the heat and risk are pocketing huge amounts of profits, despite the Bitcoin market taking a few dives.

To come back to the question posed by Sam Turner, “Is it safe to trade with Bitcoin?” – each individual trader should answer that question for him or herself. As the amount of risk one is willing to take differs from trader to trader, some may answer yes and some may answer no. As the popularity of the currency grows, more traders would be willing to trade with this currency, and that is where the answer lies.

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About Dequiana Jackson

Dequiana Jackson, CEO of Inspired Marketing, Inc., is a small business marketing coach who shows women entrepreneurs how to use solid marketing strategies to turn their life’s passion into a profitable, service-based business. Dequiana is the author of Know Your Business: How to Attract Ideal Clients & Sell More and runs the award-winning blog, Entrepreneur-Resources.net.

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