Bitcoin exchange: what you need to know about it

Since December 19, 2017, the cryptocurrency Bitcoin has been traded on the stock exchange. Investors can now trade Bitcoin futures to bet on Bitcoin's price movement. The price also fluctuates greatly with Bitcoin. Nevertheless, it can be worth investing in the cryptocurrency.

What are futures? Explained clearly

With a future, investors bet on the price of a product at a certain date. They speculate on whether the price will rise or fall. Because the cryptocurrency Bitcoin is unregulated, banks and institutional investors were prohibited from trading Bitcoin. Now they can buy the future as it is issued by a regular exchange, the "Chicago Mercantile Exchange futures exchange." This brings Bitcoin closer to the established financial system. Since 2018, the largest electronic exchange in the United States, NASDAQ, also issues Bitcoin Future. The German exchange also offers Bitcoin Future for speculation. The exact conditions can be viewed, for example, on various websites, such as boerse-frankfurt.de.Effects of Bitcoin on the stock exchange

1. Investors can bet on the price decline of Bitcoin with futures.
2. If this happens en masse, the price of the futures is lower than the current Bitcoin price.
3. Für normale Bitcoin-Käufer ist dann klar, dass Investoren auf sinkende Bitcoin-Preise setzen.
4. Das könnte zu Panikverkäufen des Bitcoins und zu fallenden Bitcoin-Preisen führen.
5. Der Druck zur Regulierung des Bitcoins wird größer werden, weil jetzt auch Banken und Institutionen in Bitcoin investieren.