Bitcoin, the world’s first (and largest) cryptocurrency was not the most traded instrument in 2017, but it was certainly
one of the most volatile, and early indications point to that volatility continuing well into 2018.Last year, analysts and investors were so excited when the price of Bitcoin rose from $433.49 on January 1, 2016 to $995.44 at the end
of the year. The internet was all abuzz at the prospect of the first digital currency poised to break through the $1,000 barrier. It turns
out that was only the tip of the proverbial iceberg.By December 1, 2017, that price had risen meteorically to $10,861.47, a whopping increase of more than 991%. What’s more, in the first
week of December, Bitcoin jumped an additional 44% to $14,275.26.
This type of volatility bodes well for forex and CFD traders. Whether the price continues to rise, or the bubble bursts and the price
plummets, there are sure to be plenty of trading opportunities.
And for those who are considering purchasing Bitcoins, even though the price of a single unit is growing increasingly prohibitive, it is
possible to purchase fractions of coins while staying within your financial means.
For example, if Bitcoin costs $10,000, and you purchase $150 of it, you would then own 1.5% of a coin, or 0.015 Bitcoins. If the price of
Bitcoin rises to $15,000, then your 0.015 Bitcoin is worth $225, and you have earned $75 on your investment. Of course, as with any
investment, there is no guarantee that the price will continue to rise, so any purchase of Bitcoin should not be undertaken without
properly understanding the market trends, and all of the inherent risks.
In any event, the future is shaping up to be very exciting for Bitcoin, thus making the BTC/USD our pick for the most important
financial instrument to watch in 2018.