Bitcoin, the cryptocurrency which can be converted to any currency of choice, is a great asset. Currently, there’s no control over how one may value it against their own currencies. But the question of whether you’d like to exchange them right away or keep them till a later date possibly making a profit is something you need to decide based on the bitcoin exchange rate. The following information is a useful guide to find out the bitcoin exchange rate.
First, find out the latest bitcoin exchange rate. You can find out the latest price of bitcoin (currency symbol: BTC or XBT) in one of the exchange services – e.g. Exmo.Com, Bitstamp, Bitfinex and BTC-e. Certain service websites also provide the Bitcoin Price Index. An internet search will take you there.
Predict the price trends Now this is a probability situation. Please remember – it is a subject of a market risk. There are two major approaches: fundamental analysis and technical analysis. Fundamental analysis examines all the aspects of the economy, the company/security. Whereas technical analysis examines past market data focusing on historical prices and volumes and then takes a call. To do the technical analysis, access a bitcoin price chart. This displays data not in a data table but in a way more readable manner. The Bitcoin Price Index will be able to lead you to one. A basic price chart displays the price as a line.
Closing prices of any given period of time (a month, a week, a day, one hour, etc) are used to draw the price line. This kind of chart can be used to get a quick overview of what prices have been doing lately, but traders need more data to draw their conclusions.
Trader’s choice: the candlestick chart – the most widespread type of chart among traders is the candlestick price chart.
Using the information from Bitcoin Price Charts
On following these charts on a daily basis you would be able to predict the bitcoin exchange rate quite easily. This will help you go in for the exchange. However, it is crucial for one to remember that the bitcoin exchange rate is rather volatile mainly due to the lack of liquidity and a central monetary authority to make sure supply and demand are balanced. Also, the absence of any large exchanges where buyers and sellers can find each other, makes Bitcoins vulnerable to manipulation and speculation.