A Comprehensive Guide on the Ins and Outs of Bitcoin Halving

Impact of Bitcoin Halving

One of the significant effects of Bitcoin halving is the slashing Bitcoin reward. Back in 2016, the reward associated with Bitcoin fell from 25 to 12.5. This further led to the hike in Bitcoin pricing, rising from $576 to $650 right before the event. And the trend doesn’t seem to halt as prices keep rising.

A similar pattern was recognized back in 2012 at the time of first halving. The reward dropped from being 50 to 25, and the price kept rising, starting with a shift of $11 to $12 before halving and reaching up to $1038 by 2013.

Trading Bitcoin in 2020

One question that arises here is who benefits from the process of Bitcoin halving or who would be worried about the same?

Traders, at most, are the ones influenced by the process of Bitcoin halving, let alone the idea of increasing prices. There are two significant ways one can trade Bitcoins.

1. To theorize the price of the Bitcoin prior and post halving (use derivatives such as CFD)
2. Purchase Bitcoins through an exchange.

While purchasing coins might be a risky affair, it is best to opt for the first way. In fact, there are multiple ways of trading Bitcoins using derivatives such as CFD.

• Enables traders to enter into the business without actually having any amount in the wallet. This implies that they work on a no-risk basis, trading without an account.
• It allows you to take charge and speculate whether the prices would rise or fall.
• Gives the ease to fill in the deposit, also referred to as the margin and then go ahead to attain wider exposure of the market. This, in a way, creates an ecosystem where traders can attain higher profits with a small investment.