Bitcoin, like other cryptocurrencies, is mostly highly volatile and daily price changes of up to 10% are not uncommon. Of course, as investors and traders know, big profits are the result of taking higher risks.
However, it is not appropriate to invest in Bitcoin trading and investing funds that you cannot afford to lose. As we can see in the chart above, in 2017 the cryptocurrency market jumped with space by 1338%.
However, in 2018, this market reversed and collapsed, leading to a loss in terms of capitalization of about $ 700 billion, and Bitcoin lost almost 75% of its value. This market crash could be exploited by trading Bitcoin CFDs, instruments that allow the opening of short positions .
In this way, traders and investors could benefit from the downward trend in the price of Bitcoin. The most likely causes of the Bitcoin crash and the entire crypto market in 2018 were most likely:
* Illegal initial coin offerings (ICO)
* Money laundering
* Tax evasion
* Cyber theft
* Changes in the markets
* Low regulation or non-existent in some cases
* Excessive speculation
* Overbought levels from 2017
However, after a difficult 2018, the volatile price of Bitcoin ended 2019 with some steady growth.