Have you ever experienced a situation, with your Forex Broker, where a surprise news headline went public and you went in because you saw an trading opportunity and made a position, but after a few minutes the market went reverse? You were suppose to put stop loss on that earlier position, but it was just a quick entry for a quick buck and you now having problem because the order for a stop loss or trailing stop doesn’t count in? Or have you ever experienced that you needed more information and set of new eyes to see the market clearer when everything is not coming into place, especially, after a few straight losses?
A few months ago I opened an account with InstaForex, I heard a lot of good comments about this Forex Broker so I decided to try trading at this broker. Since I’ve been experiencing a couple of Trade Slippage, and was trading at variable spread that eliminated my positions immediately in a good opportunistic scenario, when the price fluctuates widely. As Jordan Belfort said in the movie the Wolf of Wall Street; “My clients don’t judge me by my winners, but they judge me by my losers”. And surely, before I change to Instaforex, I was losing badly. Hence, there are bulls and bears I’d rather be profitable.
It is important for me that the Forex Broker has a clear system for trading, rules and policies regarding the withdrawal and deposit of funds. After all, if a fund, even if it’s the smallest amount we want to withdraw, and if takes a lot of time then we doubt and complain. Depositing money, as well as Withdrawing money comes in easy and very accessible forms as my Forex Broker, Instaforex, has so many tools for funds transfer, didn’t thought that they would do a better job at first but they did. Starting with withdrawals there’s a standard time for these important transactions to be handled and what I like about this is the fast response of the Customer Service group that makes me feel that my money is safe. They respond to me through email, and courteously discuss with me the situation and procedure.
There’s an array of banking payment system for depositing and withdrawing funds. But what I like most amongst this is my first trial of the Forex Broker’s innovation, InstaWallet. There you can share and save your funds with fellow traders, in this case my friends. Like any other broker this Forex Broker have the same transactions in terms of deposit. Now, I was able to withdraw funds through Skrill which has no fee associated and is processed just within 24 hours.
I was impressed by the great credential and how InstaForex managed their operations in their early years. While I was conducting my background research I was able to see numerous of prestigious award that the company was recognized for, no wonder InstaForex became the Asia’s Best Broker. It was Asia’s Best Broker in 2009,2010, and 2011 by World Finance Awards, speaking of a grand slam championship right there for 3 consecutive years; Best Retail Broker in 2011 by European CEO Awards and Jordan Expo, and 2012 by IAIR Awards to name a few. Looking for a Forex Broker, it is important to note the successes that they’ve achieved as this is a proof that they mean business and that they’re doing very well in their field that’s why they are being recognized. And I just didn’t stop there, I researched why and what things did they do to deserve such recognition.
As I was checking other news feed, their great platform and other great offers, what made me realize that InstaForex as a Forex Broker have done a great job is their history of making great deals. They’ve secured a contract with MetaQuotes Software Corp., whose business is providing quality online trading software. They’ve negotiated and entered into quality contracts with the largest news provider (Reuters and others) to perform good analytics and real time information which is very important to all traders, and importantly, reached an agreement with major contractors to have access in the foreign exchange market, speaking of high liquidity. These moves were the fundamental building block that creates and maintains high-grade service regardless of market condition.
And as a great Forex Broker, they continue to ride this momentum and better their services with cutting edge technology to consistently provide higher than the standard performance. To which they have pioneered and co-branded the InstaForex Bancard, where traders and investors can transfer money from their trading accounts to VISA cards/InstaForex Bancard. Such an innovation makes the process more effective and efficient that paved way to the creation of other great systems like PAMM accounts, Forex Copy and many more.
Changing Forex Broker makes it difficult to change that established habit, but as I shift to Instaforex I was able to trade immediately, since the platform they use is similar to the one I’ve been using, MetaTrader 4. Hence, no time wasted for major adjustments. As a newbie to an intermediate trader like me, it is a good sign if the Forex Broker provides educational setups and other new ways to develop learnings. On their website I saw many icons leading to videos and blogs about trading, and through this I am aware and exposing myself into seasoned market experts that sharpens my instincts for high probable trades. Also, this new unique system called InstaCopy where I, or anyone, can copy the proven and winning trade patterns of the most successful traders in the field has proven a good training for me as I replicate other’s winning positions.
Winning and Losing trades vary from trader to trader. There are traders winning in bulls and there are traders winning in bears, but to me these are all paper gains until I close my position which becomes profit. My Forex Broker, now, adheres to what I seek as a trader. If I didn’t take the risk of changing, then I just continued my growing headache further, and now I’m slowly becoming a winner again.
In this article we are going to discuss what the possible effects are after of the Federal Reserve first interest rate hike and why it was needed that the Fed had to increase the interest rate.
Yesterday Janet Yellen, the chairwoman of the Federal Reserve announced the first Federal Reserve interest rate hike for the first time in 7 year. The reason why the Federal Reserve had to increase the interest rate was because they thought that US economy can start growing with lesser help of the Federal Reserve. Most of the time when a central bank increased the interest rate its because the inflation rate is too high. A increase in the interest rate should decrease the inflation rate. However in this case it is different. The increase in the interest rate is more a sign to the world that US economy is growing and it is going back to the normal growth.
The Federal Reserve interest rate hike was expected by most traders and investors as the past months the economic data from the US was getting better and better. So the interest increase was unavoidable. The question was what is the pace of the Federal Reserve for increasing of the interest rates will be like? Janet Yellen answered that question yesterday in her speech by saying that the interest rate will be gradual increased. Which basically means that increase of interest rate will be very slowly.
Now that the first Federal Reserve interest rate hike is a fact. What will be the effect? The first effect will be the that the borrowing cost will be more expensive. As matter in fact Wells Fargo (one of the US big banks) have announced that they will increased their prime rate from 3,25% to 3,5%. And soon other big banks joined Wells Fargo such as JP Morgan, Bank of America ect. By the actions of these banks business owners and consumers who have variabel interest rate for their loans will have to pay more interest to the bank.
On the anticipation of further Federal Reserve interest rate hike in the future people who have plans for buying their house will no long wait and start to get their mortgage while the interest rate is still low. Brokers and companies that are involved in building and decorating houses will be profiting from this first Federal Reserve interest hike. You can expect a increase in sales for companies such as Home Depot.
Normally a increase of interest rate is bad news for the stock market in general. But in this case it will be good news for the stock market. The reason for that is that gradual increase of the interest rate. Which means that cheap money is still available for at least year. A increase of 0,25% is not much. And because of the gradual interest increase bonds, obligations will be not attractive enough to invest compared to stocks. If the commodities such as oil stays low and the Federal Reserve increase their rates gradual then consumers will still have a strong spending power. With a strong spending power it will be good for the companies. And the best way to profit from it is by investing or trading in stocks.
Today on the 9th October 2016 we are going to discuss a little bit about a potential Volkswagen share price downtrend. And how you can make a profit from it. There is a serieus risk that Volkswagen share price downtrend will continue. It may look like that the Volkswagen share price is forming a bottom but we think that this could be a temporary correction in Volkswagen share price downtrend.
Last week more bad news came out for Volkswagen came out and also this weekend. Volkswagen admitted last Tuesday 2th of November that they have also cheated on gasoline cars. And this weekend one of Volkswagen head designer Walter Maria De Silva quit his job and left Volkswagen company. Too make things worser one of Volkswagen shareholder Nordea Asset Management is looking to sue Volkswagen for the losses according to the Financial times.
To anticipate a possible price move in Volkswagen share price downtrend, you need to look at the three months chart. Sept, Oct. and Nov. to check how the price movement of Volkswagen is developing. When you look a the chart you will see clearly that stock price of Volkswagen is in a downtrend. The higher highs is getting smaller. However there seems a support level at the price level of €115,20. It has already bounce three times on that support level. In general if the support level is being test too often then that support level will break. In this case it means that if the support price level of Volkswagen is being testen often eventually there is a high chance that the stock price value of Volkswagen will go below €115,20 per share.
The best way to make a good profit short term is by going short on Volkswagen Cfd shares at broker who provides trading CFDs with leverage. Why shorting Volkswagen CFDs shares with leverage? The reason for that is with leverage you can gain more profit. If you want to know on how to calculate your CFD trading cost and profit then read this tutorial: Calculate CFD cost in simple steps.
If you are in Volkswagen shares for long term like 2-3 years then I would say keep those shares and buy put options to protect your portfolio. See the put options cost as a premie that you pay for insurance. I think Volkswagen will survive this crisis. If we look at the history of car companies, Volkswagen is not the only company who had a huge penalty. General Motors and Toyota for example both companies had experience mayor penalties and they have survived. Or BP for example with their oil disaster in the US. However it may take a while before they recover in share price. And you don’t know how low the value of Volkswagen share price will go before the crisis of Volkswagen is solved. So again if you are holding Volkswagen shares for the longterm, buy put options to protect at least the value of your investment.
On the 4th of November Facebook announced that they will roll out a new app. The name of this app is Notify. In this blog you will get to know what this Notify app does , what its revenue model is and discover wether the Facebook Notify news app will be a successful or not.
So what is this Facebook Notify news app? Well basically it’s an app where the users can subscribe to a certain publisher. When a publisher published news, new content, new video ect. the user will receive a notification that something has been published. For example:
Let’s say you have subscribed to a organisation that publish content about trading the stock market. Whenever this organisation publish a new blog about trading the stock the stock market, the Facebook notify news app will notify you about it. This way you don’t have to worry about missing out or reading the news too late.
At the moment this not very clearly. But we can assume that the revenue will be like at the one from Facebook Instant articles. Where Facebook share 30% of the advertising revenue to it publishers. Which means that they will keep 70% of the revenue to themselves.
This a great question. There is a good chance that Facebook Notify news app will succeed. As there appears to be a market for news app. Early this year Snapchat , Twitter and Apple have launched a news app. Yes even Apple has launched a news app and it is a succes as it already has 40 million readers. And the fun thing about the Apple news is that it is only available in a few countries. Its not worldwide yet.
Another reason why Facebook Notify news app could be a succes is that Facebook Notify News app is a evolution of Facebook Instant articles where publishers are happy with Facebook. Its one of the reason why big news companies such as the BBC, Vogue, Washington Post and CBS have joined Facebook in the Facebook Notify news app.
Content on Facebook Notify news app wont be a problem and finding advertisers for to advertising won’t be a problem either for Facebook. The only challenge that Facebook is engaging and getting new users to use the Facebook Notify news app on their mobile phone. Facebook has been successful at attracting new users to the Facebook app and it’s messengers app. But it had failed with establishing stand alone apps. Especially the ones that were focused on the young audience. Apps such as Poke and Slingshot had failed to get a substantial users.
The reason why Facebook Notify news app will succeed in getting users more then at Poke and Slingshot is that it has well known Publishers such as the BBC , Times, Washington Post, Mashable ect. that will publish content on Notify. These well know media company are known for publishing good quality of content and sure it will draw some its readers database to use Facebook Notify news app.
Facebook Notify news app is basically another app where Facebook can gain a new audience for advertisers. The bigger the crowd the more advertisers Facebook will have which leads into a increase in revenue and profits. If Facebook is indeed to launch its Notify app next week. Then we might see in the next quarterly report if this Facebook Notify news app is a succes or not.
In today’s blog we are going to share our Facebook share price forecast q3. In a few hours Facebook will announce their earnings. Will the earnings of Facebook beat the expectations of Wall Street? If Facebook does manage to beat the expectations then the share price will probably continue to go up. If it meets up with the expectations of Wall Street then it might go down a little bit. And if the earnings of Facebook is lower then what Wall Street expected, the share price of Facebook will drop significantly.
So what happened the last time when Facebook announced their 2nd quarterly result this year? Well their earnings of the second quarter beat the expectations of Wall Street. As the result of that outcome the share price of Facebook started to increase until the Chinese stock market started to crash and took the world wide stock market down with it. When the worries about the Chinese market stopped, the US and European markets started to grow again and so did Facebook.
Facebook share price forecast q3: According to a note from Cantor Fitzgerald analyst Youssef Squali, Wall Street is expecting Facebook’s ad revenue to have grown 41.2% year-over-year in Q3 to $4.176 billion, representing a growth path that is nearly three times faster than the overall ad market, but also marking a deceleration from 43% growth in the prior quarter. The company’s mobile ad revenue is expected to rise to nearly 80% ($3.338 billion) from 76% in the prior quarter and “virtually zero” in early 2012, according to that note.
Industry analysts also speculate that Facebook could show its monthly active user (MAU) base grew 13.4% year-over-year to 1.531 billion and an engagement of daily active user (DAU) to MAU reading of 0.651, which would be consistent with prior quarters.
Read more: //www.benzinga.com/news/earnings/15/11/5961092/wall-street-expectations-running-high-for-facebooks-q3-earnings#ixzz3qYLMH87q
The expectations for Facebook share price forecast seems to be high this time. I think it would be tough to beat but I must take note that Facebook is putting effort to gain the engagement for the their platform users and at the same time they working on creating new services for their customers. So there is a good chance that their monthly total active users will be bigger then what most experts thinks.
When you look at the graph of Facebook. You will see that they have been going up steady since end of Augustus.
In our Facebook share price forecast q3 we think that only way that the share price of Facebook can go up is when they beat the Wall Streat expectations big time and it go up to 120 dollars a share by the end of this year. However Andreesen , a director of Facebook has been selling 15% of his stake in Facebook which could signalling that Facebook 3th quatar is not going to be spectacular. If that happens you can be sure that Facebook share price will go into a down trend.
To put it bluntly our Facebook share price forecast q3 says that no matter what outcome of the earnings will be Facebook will gives us trader a good opportunity to trade long or bearish for at least 3-4 work days. The chances on a sideway movement seems to be small. The reason for that is that the share price of Facebook have been growing steady already. So even when Facebook results meets with the expectations of Wall Street I think the share price will drop in value for 2 days.
I wish everybody a good profit with trading
In this third part of the online CFD course we are going to explain what the CFD trading cost are. The first part was all about what a CFD is and what the advantages were from using CFD. The second part of the online CFD course was about how you could make money with CFD trading. If you want to read part one and part two then click on the two links below.
Before you are placing a CFD there some CFD trading cost that you should consider. At most CFD Brokers you will have to pay a commission fee, spread cost and a holding cost (if you are holding a CFD position longer then one day). However at Plus500, they only charge you the spread cost and a holding cost ( if you are the CFD buyer and if you are the CFD Seller you would receive a interest).
CFD trading cost of commission
When a CFD broker charge you a commission for each trade it will always consist out of the part. The first part of the commission is the minimum fixed commission price which is usually between 7 -9 pounds. And the second part of the commission consist a percentage of a trading value. So basically the higher the transaction trading value is the more commission you pay. Luckily there are some brokers such as Plus500 and Markets.com that doesn’t charge these kinds of commission. If you want to know more about these two brokers then you can check them at our brokers review.
When you are buying and selling CFDs immediately, the spread amounts to the difference between what you paid and what you receive. If you sell share-based CFDs, you will receive interest. So basically when you begin CFD trading you will notice that the transaction fees is always related to your trade. A part of the CFD trading cost is called a spread cost which is the difference between the bid/buy price and ask/selling price.
Let’s say you want to trade in forex and that the spread is 2 pip. So which this means is that you transaction fee is 0,0002 cent per traded unit. If you are trading GBP/EURO with 100 pounds and a leverage of 1:200, your transaction fee will be ( 100 x 200 x 0,0002)= just 4 pounds.
Unlike trading options CFD’s doesn’t have a expiration date. You can hold most of your CFD’s position overnight, weeks or months. However when you hold a position overnight you will be charged interest. This interest is really small but you get charged for it because when you hold a CFD position overnight it will be seen as an investment that has been made with borrowed money. So in this case your broker(lender) have to charge you a little interest.
Let’s say you want to buy Starbucks CFD shares at a price of 50 pound a share with a transaction value of 10.000 pounds and you have a leverage of 1:20. With this leverage of 1:20 you will have to use only 500 pounds of your money instead of 10.000 pounds instantly. And you will hold this position for 10 days and sell those at 60 pounds per share.
So what would be your profit after deducting the CFD trading cost?
Initial trading value was £10.000,- which equals 200 Starbucks CFD shares.
Final trading value (after you have sold your position) is (£60,-x 200 Starbucks CFD shares)= £12.000,-
CFD trading cost = spread opening + spread closing + overnight cost.
spread opening cost= £20,-
spread closing cost= £20,-
overnight cost= the interest rate at most brokers is usually the Libore interest + 2,5%. Let say that the libor in this case was 2,5%. So the total interest rate for a overnight position in total is 5%. The overnight cost will be £10.000 (transaction value) x 5% (interest per night)/365 days= £1,36
The total overnight cost for holding it for ten nights will be £1,36 x 10= £13,69
In this case your net profit will be £12.000 – £10.000 -£ 20 -£20 -£13,69 = £1.946,31
So your return on the investment on CFD trading with only £500 pounds is nearly 400%!
Now your CFD trading cost could be more if the broker also charged you a commission on each transaction that you have made. Fortunately there are a few brokers that don’t charge commissions. One of them is Plus500. If you have any questions regarding this topic, please post them in the comment section below and we will answer it as soon as possible.
Read more about CFD Trading: How to make money with CFD Trading
In this article we are going to discuss whether it is time to buy Volkswagen shares. We will outline the pro’s and cons of buying Volkswagen shares. After reading this article you can make your own decision whether you should start in Volkswagen shares or not.
The American authorities caught Volkswagen cheating on the pollution test. Volkswagen had software that was able to sense when a vehicle was being tested for a pollution test. The software sensed that based on the position of the steering wheel, vehicle speed, the duration of the engine’s operation and barometric pressure. With this software Volkswagen diesel cars produce less pollution on the test while in the reality they produce more. Since the American Authorities have found that out the Volkswagen share prices have been dropping significantly. At the lowest point Volkswagen share had lost more then halve of its stock value.
Here are few reasons why you should consider investing in Volkswagen shares:
Currently is impossible for me to find solid grounding reasons to start investing in Volkswagen shares for the long-term like I have with Starbucks. With Starbucks shares I have good grounding reason to invest it for the long-term. In lesser than a year my Starbucks shares almost doubled in value. I think at this moment the only way to get profit from Volkswagen shares is by trading it. At the moment of writing this blog the current value of Volkswagen share is 103.70 Euro. I think this could be a price pivot point where the share will drop in price again.
If you are looking at the chart of Volkswagen shares, you will see that (according to our technical analysis) Volkswagen shares are still in a downtrend. Every technical analysis indicator such as the trend lines, horizontals, support and resistant lines are indicating that Volkswagen shares are in a downtrend.
So if you are shorting Volkswagen shares there is a good chance that you will be profitable soon. But don’t expect a huge decline. I think that the Volkswagen shares won’t go under the share price 100 Euro unless Volkswagen had cheated in Europe as well. If you own Volkswagen shares then keep it and don’t sell. Buy a few put options of Volkswagen to protect you portfolio. And if you want to make money with Volkswagen shares then start trading in Volkswagen cfds shares. By trading in Volkswagen CFDS shares you can make a lot of money with a small amount of cash investing. If you are interested in making money by trading CFDS then read this article : 1019 EURO profit with a invest amount of 400 EURO
CFDs dividends. Did you know that you could get dividends that are paid on shares with CFDs? It is really simple. In this article you will get to know when to invest in cfd’s to get the dividends. And you will find out how the dividends dates will influences your CFDs dividends position. If you don’t what CFDs are then please read this: CFDs.
Before we are going into CFDs dividends let’s check out how the dividends payments work on shares. When you own shares there are three important dates that you must know and remember for the dividend pay out. The first date is called ex-dividend date. If you bought shares before the ex-dividend date then you are entitled to get the dividend. However if you buy shares on the ex-dividend date or after then you are not entitled to receive the dividend.
The second date is called the record date. This date record last three days right after the ex-dividend date. In this period the investor must held their stock position in order to get the dividend. The reason for this is that it takes three days to settle the purchase of shares. The third date is the payment date. Its a fixed date where the company will pay the dividend to their shareholders. Usually this date takes after 2-3 weeks after the record date.
So how does the dividend payments works when you are having cfds dividends on these shares? Let’s say you are trading in these CFDs dividends of a certain share. Now you probably know that there are various charges and credits when you have open a cfd position. The dividend adjustments is one of these credits. Typically, the actual dividend payment made by a company is usually made a few weeks after the ex-dividend date. For instance, XYZ Company might go ex-dividend on the 3rd August but pays the dividend money on the 3th of September, however when owning a CFD dividends position for this period you’ll be credited the dividend on the following business day. Great isn’t? Well it is just one of the advantages of trading in CFDs dividends shares.
When you hold a long position in CFDs dividends shares, and held it the day before the ex dividend date, then you become entitled to receive a payment equivalent to the amount of the dividend. Remember that you must be in the position before the ex-dividend date to receive the dividend. For instance if the share you controlled through a CFD went ex-dividend on Wednesday, then you will need to have bought these CFDs dividends shares at least on Tuesday to earn the dividend credit.
If you are shorting the CFDs dividends shares then the situation will be different as you now owe the equivalent of the dividend, and it will be debited to your account. Holding a short position is good in one way, because you get paid interest instead of paying interest on the margin as you do when you are long, but this is one place where you have an immediate apparent loss.Thus, if you are short selling a share or other securities (i.e. standing to gain from the position if the share price falls in value) and you are short prior to the ex-dividend date, then you will owe the dividend.
However the situation is not so clear in reality as it is described above. The reason for this is that you must also consider is that the share price will change on the ex dividend date to reflect the amount of the dividend, more or less (although some traders make use of a dividend trading strategy to exploit market inefficiencies). On the ex dividend date you can expect the value of the shares to drop by nearly as much as the amount of the dividend, which maintains a level equity for the conventional shareholder.What this means in is that your long CFDs dividends position might take a hit, even while you are receiving funds for the dividend amount. The short position will make a profit which offsets the dividend debit to your account.
Read more about CFD Trading: How to make money with CFD Trading
Today is the PayPal IPO. After thirteen years being with Ebay, Paypal is now a separate company on the stock exchange. And that is good news for us investors and traders. If you are interested in investing in Paypal then you must read this article. In this article you will get to know what the business model is from Paypal and what the potential earnings can be.
Why did Ebay and Paypal seperated from each other? The reason why they have separated is because the mobile payment market is showing big promises as the e-commerce market keeps becoming bigger and bigger. And more and more big tech companies like Apple , Amazone and Google have created their own mobile payment system in order to benefit from the growth of mobile- and on-line payment market. If Paypal stay with Ebay they will be limited in teaming up with other e-commerce websites. (as they see Ebay as their rival) With Ebay gone now it will be interesting to see on how the new income stream of Paypal will look like. With the extra cash that PayPal IPO gives it will be interesting to see of what kind of companies PayPal will acquire.
Lets take a look on how PayPal earns their money. PayPal generates revenues from fees charged to consumers and merchants for different payment-related services. PayPal allows consumers to transfer funds to merchants in a secure manner through the PayPal digital wallet. The cool thing about the Paypal Digital Wallet is that it not includes internal resources such as the PayPal account balance and PayPal credit account but they also include external resources such as bank transfers or credit and debit cards. And one other thing PayPal does not charge consumers for funding or withdrawing funds but they only charge fees when consumers are lending money by the PayPal Credit.
Most of PayPal’s revenues are generated from transaction fees that is charged to merchants. The fee percentage vary from 2.2% + $0.3 per transaction for eligible merchants to 3.9% + a fixed fee based on currency received for international fees. With a other service PayPal Here Paypal charges a transaction fee of 3.5% of the transaction value and offers a free point-of-sale station for small businesses to process credit/debit cards in their stores.
As you can see in the graph above PayPal has been growing very strongly. In the first quarter of 2010, PayPal processed $21.34 billion in payments. By the fourth quarter of 2012, this amount grew to $41.47 billion. In the first quarter of 2015, the amount of payments processed grew to $61.41 billion. This represents nearly 300% growth in payments processed since 2010. This number is likely to grow in the future as PayPal expands its mobile payments business. PayPal processes approximately 30% of its payments on mobile devices, up from merely 1% in 2010. With these good numbers it makes it very interesting for investors to invest in the PayPal IPO.
The long-awaited PayPal IPO is expected has finally taken place. With the PayPal’s impressive TPV and net revenue growth rates on top of the promising expansion potential it makes the PayPal stock a very attractive growth investment. Without the restrictions of Ebay Paypal can focus on offering their services to the competition of Ebay as well. So there is a very good chance that Paypal can grow more in value over time. The first few weeks could be very volatile , so short term traders can benefit nicely from it.
It’s has been a while that we have heard of the Bitcoin. Since its all high-ranking peek of $1124.76, the Bitcoin value have mainly dropped down in price. However since the begin of June the Bitcoin value have been increased by 10% so far. In this article we are going to look to see if it is time to trade or invest in Bitcoins again.
There is a good chance that the Bitcoin Value can go up nicely this year. And here is why.
This year 2015 , Bitcoin is getting regulated by the US. In early may 2015 the first Bitcoin Regulated exchange ITBIt. Many US states are legalizing Bitcoins to help the start-up companies that related to Bitcoin in their region.In Europe the EU and the Bank of England are investigating on how to integrate crypto currencies like the Bitcoin can be integrated in the financial system. In Spain and in Switzerland Bitcoins are exempt from VAT taxes, which make the Bitcoin more attractive. (sources : yahoo finance)
More and more Bitcoin related start up companies are coming up and many investors are funding them. One these investors is Goldman Sachs. Goldman Sachs invested this year $50 million in a Bitcoin related start up company. Which is surprising to me. I thought all banks were against bitcoins. Goldman Sachs is not the only bank that has invested in a bitcoin company. Big banks all over the world are considering investing in bitcoin companies.
How is the Bitcoin performing on the markets? The Bitcoin value have been increasing since Febuary 2015. As you can see in the graph below the bitcoin is setting a new higher as it has broken his horizontal resistance level of 11 March 2015. Currently Bitcoin value was 310 dollars when writing this article.
As you may have notice the bitcoin value began to rise in June. There are several reasons of why the bitcoin started to grow in value.
The possible Grexit situation could make big and small companies realize that it might be better to have bitcoin as a spare currency in countries that have financial problems. So that when a bank doesn’t supply money, the companies can still do business.
In short term Bitcoin value will go up, as long there is an uncertainty of Greece. For long-term is starts to look good for the bitcoin value. More and more US states is legalizing regulating on the bitcoin. And many bitcoin related start up companie are coming up all over the world. These companies where investors pour in millions of millions dollar will promote bitcoin heavily to the general consumers. It’s probably smart go for the short term first by trading in bitcoin cfds. Big percentage in price change will come since the bitcoin has broke its resistance level for this year. So your profits will be a lot bigger. And if you are in for the long term then buy bitcoins in portions. Don’t go all in right away.