When the early adopters got started with Bitcoin, they didn’t have a clue that it would go on to be one of the most famous investment vehicles in the world. People would buy Bitcoins and either sell them on the open market for cash or keep them in their offline wallets until the value of the actual Bitcoins rise to a point where they can exchange them for cash.
It’s important to understand that the number of traders in the Bitcoin market has grown enormously over the past few months. But at this stage, if you’re only looking to make profits from Bitcoin trading you’re going to need to focus on two markets – the Tokyo and the New York markets.
So what are these markets exactly? These markets are what is known as the Over The Counter (OTC) Derivatives markets.
Let’s take a look at what happens when someone buys Bitcoin for their capitalization and then wants to sell it for more money. What you see is that once they sell it, they get to offset some of the loss with some more cash and that makes it more attractive to other people who want to buy a Bitcoin for their capitalization.
With a traditional stock market, you have investors who are constantly buying and selling in a very short time period. What happens in a traditional stock market is that there are large amounts of capital that is available to do very quick transactions.
But there are also large amounts of capital that are waiting to do very short-term trades and that slows down the capitalization growth. As a result, they have a lot of losers in their portfolios.
With OTC, you have the opposite of this – you have investors who don’t have access to the capitalization growth and that slows down the growth of the price. Because of this, you will find that the price of a Bitcoin has to go up much faster than the price of a regular stock to compensate for the loss that the sellers have to offset.
So with all of this being said, if you’re a person who’s interested in making profits from the Bitcoin market, you have to be focused on two markets – the Tokyo and the New York markets. If you’re doing well, you’ll be able to move a lot of cash and make a lot of money, but if you’re not in great shape, you’ll be lucky to break even.