What Is Bitcoin Trade?
It’s the act of buying and selling of Bitcoin through an exchange platform. It can be traded by indulging in buying and selling of Bitcoin on a Cryptocurrency exchange or by means of derivative financial instructions.
How To Start Bitcoin Trading
1.Sign up for a Cryptocurrency exchange
It’s advisable to open an account with Bitcoin friendly exchanges eg Zebpay since they have easy user interface and wide range of coins.
2.Put money into your account
Do this through bank deposits or peer-to-peer.
3.Choose Bitcoin to invest in
Select the amount of Bitcoin you wish to buy and trade further.
4.Start the process of trading in Bitcoin
You can also make use of Bitcoin trading bots which will help you with significant returns according to your trading objective.
5.Store your Bitcoins safely in your digital wallet
Are you an active Bitcoin trader? If yes, store the coins on the exchange in order to access them but if planning to hold them longer, purchase Bitcoin wallets.
Bitcoin Trading Strategy
1.Bitcoin Day Trading
It involves traders entering and exiting positions within the same day. Ideal for those who want to make profits from short-term market movements.
Pros: quick profits,better risk management
Cons: very short-term outlook,might lose money faster.
2.Bitcoin Swing Strategy
Traders take full advantage of short-term price patterns. Based on assumptions that prices swing thus traders look to make profit from both the up and down market movements.
Pros: less stressful,more time to grasp the day trading
Cons: not easily learned,requires meticulous research
3.Bitcoin Position Tradings
Focuses on long-term growth since it entainls buying and holding Bitcoins for longer periods.
Pros: less stressful, easier to grasp
Cons: only long-term profits can be realized,risky to keep positions for long
Factors Influencing Bitcoin’s Price
1.Limited Supply – means there’s high possibility of change in price of Bitcoin as per rising and falling demand.
2.Market Capitalization – Bitcoin has highest market capitalization meaning users perceive it as more sought after investment.
3.Key Events – Major setbacks lead to massive sell-offs while huge developments lead to huge rally in Bitcoin.
How To Analyze Bitcoin
Used by traders to determine the “intrinsic value” Bitcoin. Parameters eg liquidity,fees are used to assess it.
Includes reviewing the price patterns using charting techniques and applying analysis indicators.
How do I do Bitcoin Trading Successfully?
- Research and make informed decisons.
2.Ignore misleading news
3.Build a balanced portfolio.