Bitcoin is the top Crypto investors in this world. Bitcoin was first made in 2009 as a new payment method. At first, it had only a little value but later rose to the top. It is a digital payment service that allows you to transfer money to others in the form of bitcoins. Over 81 million people have started to use bitcoins. Currently, its value is around $30,000.
Bitcoin trading or bitcoin exchange is the process of buying or selling bitcoins in a digital marketplace. You can exchange bit coins for cash or other cryptocurrencies. The bitcoins are also used to buy assets. The bitcoin trade is successful if bitcoins are bought by an individual when their price is low and selling it when their price is high. You should find out whether the value of bitcoin is rising or falling before trading.
Bitcoin trading for beginners
Bitcoin trading is a fast-growing cryptocurrency trading. The use of the Bitcoin Era has made bitcoin trading easier for beginners, by giving them an 85% success rate. A novice trader can use it for free to improve their trading. The basic steps to start a bitcoin trade are mentioned below.
Step 1: Find factors that influence bitcoin value.
Many factors affect the bitcoin value like
- Supply and demand for bitcoin
- Competition faced by bitcoin among other cryptocurrencies
- Media and news
- Regulations made by different countries
All these affect bitcoin value. You will have to find the best time when these factors have a positive impact on bitcoin to trade your bitcoins.
Step 2: Find the best trading style that suits you.
There are different styles for bitcoin trading:
- Crypto day trading
Crypto-day trading is the process of starting and closing a trade on the same day.
- Trend trading in bitcoins
Trend trading mainly depends on the market value. If the price is high you can go for trading, and if the price is low you should wait for the right time.
- HODL bitcoin strategy
HODL strategy involves hanging onto digital assets. You will have to keep the bitcoins with you for some time.
- Bitcoin hedging
Bitcoin hedging is the process of strategically opening trades. This will help you to balance the gain or loss in one position with other positions.
Step 3: Get bitcoin exposure
Methods to get bitcoin exposure consists of
- Purchasing stock in a company
It does not require buying a bitcoin.
- Buying bitcoin through an exchange
Buying bitcoin through exchange means that you are owning that bitcoin.
Step 4: Study the rise and fall of bitcoin value and plan the trade based on it.
A good study on the bitcoin’s rise and fall will give you an idea to do trade in long or short. If you find that the bitcoin value increases in the future, you can choose long time trade. If there is a chance that the price of the bitcoin will fall, then you should plan for a short time trade.
Step 5: Set the stop-limit
Stops-limits are of two types
- Stop price
Stops will help you trade when the price reaches a specific value. Stop price will help you to mark a target where you can stop the trade.
- Limit price
Limits will help you to set a limit price. The order will be executed when it reaches the limit price.
Step 6: Monitor your trades
Continuously watch bitcoin exchange rates. This will show you the current position of your bitcoin trade. It will also give you an idea of whether the price will rise or fall in the future.
Step 7: Close the open position when you find the best value
Close the position based on your choice. Check the profits and values before you close the position. If you close your position during a loss, the losses will be taken from your trading bank account.
Bitcoin trading is the top cryptocurrency in the world and its value is rising year by year. Many people have engaged in it. Engaging in bitcoin trading is a little complicated task. If you are a beginner in bitcoin trading this article will help you understand the steps involved in the trading process. Bitcoin trading is highly risky. It can either lose its value or rise. So before getting into bitcoin trading beware of the situation.