Note: Market trading involves staggering amounts of risk. This article is intended for entertainment purposes only and is not to be taken as advice for what to do with your money! There are risks in market trading that you must be aware of before you ever enter any market and this article will not go into all of those risks. Inform yourself before spending any money on investments or market trading and never invest more than you can afford to lose!
Gambling in online casinos, while entertaining, just isn’t enough risk for some people. Well, if you’re one of those people, I have a game for you. This is a game where a tulip can go from being worth millions, to nothing at all. It’s a game that has created some of the most rich and influential people in the world. The game I’m talking about is market trading. With even the smallest amount of Bitcoin you can enter into one of the newest and most active markets today.
Traditionally, market trading has had an extremely steep barrier of entry. Only with the advent of the internet has retail trading become possible to a wide swathe of the public. Bitcoin markets take even that barrier of entry and lower it further.
Here’s the playing field, game in progress.
Don’t be intimidated, if this is your first time really looking at a price chart, trust me, it’s really quite simple. You’re looking at two teams. The Green bars (called candlesticks) on the chart are the Bulls and the Orange candlesticks (traditionally red) on the chart are the Bears.
The point of the game is to make the price of Bitcoin go up if you’re a Bull, and go down if you are a Bear. Each candlestick represents one hour of trading (in this example I’ve highlighted one hour by hovering my mouse over a green candlestick in the middle of the above chart). If the price was higher than it was from the hour before, the candlestick is green and the Bulls won that round. If the price was lower than the Bears won. In essence, the Bulls want to make Bitcoin worth more and the Bears want to make Bitcoin worth less. The numbers on the upper right of the image are the score; On 5/6 from 4:00PM to 5:00PM the Market opened (O) at $460.67 per Bitcoin. During that hour the Bulls drove the price as high (H) as 463.73 and the Bears drove it as low (L) as 460.50. Ultimately the market ‘closed’ (C) in that hour at $462.33. Because the price closed higher than it did the hour before the candlestick is green and the Bulls walked away victorious…in that hour, at least.
Now, there is a lot more too it but at it’s core that’s all you’re looking at, a price chart is two teams battling it out for the price of Bitcoin. You’re looking at a scoreboard. Bulls make money or ‘win’ when the price is steadily going up, the Bears make money and win when the price is steadily going down.
In our next article in this series, we’ll talk a little more about choosing your team! And of course, if this doesn’t hold your interest, you can always get back to the safety and security of online casinos!