Statistics show millions of bitcoin traders are active since 2019, and this number is expected to skyrocket this 2020 and beyond.
Generally, bitcoin trading provides new and seasoned traders the freedom to pay, transparency of information, control, security, low fees, and low risks. No wonder people turned to bitcoin trading.
If you’re planning to engage in bitcoin trading but don’t know how to get started, this article got you covered. Keep reading for more information!
What is Bitcoin Trading?
Many folks are quite confused between bitcoin trading and investing. But they are different.
Bitcoin trading is the process of buying coins at a low price. Then, traders sell it at a high rate. More particularly, bitcoin traders try to predict and examine price movements. They devote their time to studying the industry to enjoy high yields and minimize risks.
What seasoned traders use to examine bitcoin’s price are technical analysis and fundamental analysis. You can also utilize the same methods. But remember that successful trading requires a lot of effort, money, and time. So, a higher return on investment won’t happen overnight. It is a long process, and you really have to be patient.
How to Trade Bitcoins?
Trading bitcoins for first-timer can be a headache. But knowing how to trade bitcoins can be a lifesaver. Some tips and tricks are listed below:
Open an Account
While there are many factors to weigh in mind when trading, it is important to open an account on a reliable bitcoin exchange. Although it is tempting to trade in something cheap, be sure to work with a trusted and reputable service provider.
Verify your Identity
New traders are afraid to disclose any personal information when trading bitcoin. If you are one of them, don’t feel that way. You don’t need to panic when you are working with a safe and credible platform. When asked to verify your identity, provide all the necessary details to avoid delays and other problems.
Make your First Deposit
How much money do you need to deposit? Well, it depends on the platform of your choice. Once you know the total amount of your first deposit, transfer it to your account and start trading as soon as possible.
Open your First Position
Once you have deposited enough amount of money to your account, it’s time to open your first position. How to make it a reality? All you have to do is to buy or short sell. But study the market and make any trading decisions with confidence and conviction.
Some Trading Methods
Have you been trading bitcoins without a great ROI? If yes, use effective trading methods to unleash your full potential and maximize your success.
Day trading is the most common technique you may try. But how does day trading work? Well, it involves conducting a variety of trades every day. Your goal here is simple. You try to profit from any short-term price movements.
Day traders usually devote their time in front of computer screens. Then, they close all trades at the end of the day. If you don’t have a hectic schedule, day trading will be your best bet.
Scalping has become popular lately. But what makes it different from day trading? Well, this method allows you to make substantial profits on a small price change.
Commonly referred to as picking up a penny in front of a steamroller, scalping focuses on short-term trading. Also, it is based on the idea that achieving repeated small profits limits potential risks and opens opportunities for traders.
Studies indicate that scalpers make hundreds of trades every day. Yes, it is hard. But the efforts will be worth it.
Now you’re aware of what is bitcoin trading and some useful methods, what’s next? Take the first step of trading bitcoins at bitcoinevolution.