Bitcoin is on everyone’s lips and attracts new investors every day. Due to constant growth, more and more people are interested in BTC digital currency and invest in it. That is, an issue of how to trade bitcoin is quite relevant today. Due to significant price increases, many people are afraid to miss the next big bull run.
If you want to trade Bitcoin successfully as well as apply the best bitcoin trading strategy, you should be ready for a big rush. Many users were forced to stay by during the strong price rises in 2017 due to server load. It was impossible to register on some exchanges. Today we’re about to show you the best strategies to trade the digital gold. Let’s get started!
Bitcoin Trading Strategy: Everything You Should Know
Before talking about bitcoin trading tips, let’s find out the basic info about BTC. Bitcoin is the very first cryptocurrency ever. It’s organized decentrally and is based on a blockchain principle. This is a very secure network, which is controlled and monitored by all participants.
‘With an electronic currency based on cryptographic evidence and requiring no trust in middlemen, money is safe and can be easily transferred’ — Satoshi Nakamoto
Cryptocurrencies are digital currencies that enable simple transactions on the Internet. As certain price fluctuations can occur even with traditional currencies such as euro or US dollar, there are more and more people who trade Bitcoin to benefit from these fluctuations.
This may result in good profits. While the first dated exchange rate of Bitcoin was around 0.08 cents (USD), the highest price was reached in 2017 at just under 20,000 USD.
How to trade bitcoin for profit? Well, Bitcoin trading can be very profitable. The fact that well-known investors are also increasingly investing in digital currencies is a good proof of their success in the future. Likewise, many celebrities and successful developers, such as Twitter CEO Jack Dorsey, are committed to the spread of Bitcoin and digital currencies as a whole.
This fact also shows that blockchain technology is very young and is still under development. This means that it can continue to develop a high potential in the future and create new projects. Due to the high level of user acceptance and an ongoing mass adaptation, the industry will probably continue to show positive growth.
Bitcoin Trading Tips: The Best Way for Beginners
Once we understood the great potential of BTC, it’s necessary to find out how to trade bitcoin options as well as best bitcoin trading tips and tricks. Even if Bitcoin has already shown very high price increases, experts still see a lot of opportunities for improvement. Due to deflationary nature, Bitcoin could benefit especially in times of crisis, and function as digital gold for investors.
Many investors rely on the simple motto ‘HODL’, namely buy and hold. Bitcoin is stored via a wallet, which stores users’ private keys. It’s also possible to store bitcoins on a paper wallet. This ‘storage’ can be copied several times and kept at home.
If you want to trade Bitcoin, you have different options. Today, it’s really easy to find the best bitcoin trading strategy for beginners. The first and most important step is to choose a reputable provider. Despite the fact that Bitcoin has been on the market for a long time and many good exchanges have emerged, there are still some black sheep. It’s important to observe the provider carefully and to pay attention to its evaluation in the community.
Most providers log in using an Emil address and a secure password. After an account has been created, you can start right now and buy Bitcoin. In some cases or for higher sums of money, users have to provide their ID data (KYC). This is a sign of a reputable exchange, as this method protects against money laundering and fraud.
Before you buy your first Bitcoin, you should take a look at the current price — for example, on Tradingview.
If you want to trade Bitcoin on a reliable exchange, you can think about the Switchere exchange. It’s considered as a trustworthy one. Registration is free and there are no withdrawal fees.
Those who are more experienced in Bitcoin trading can try the BitMEX exchange. There is a place for leverage there and thus you can expect higher profits. However, the risk of loss also increases, which is only for experienced traders. A deposit can also only be made in bitcoins.
Bitcoin Trading Guide: The Best Way for Advanced Traders
There is one more strategy in our bitcoin trading guide. Let’s consider it! If you have some experience and are familiar with Bitcoin trading, you can deal with chart analysis. This is a method to determine a price trend for the future. This strategy helps to identify the best opportunities in trading Bitcoin and thus to achieve better profits.
Various indicators are used to analyze the rate. These are mathematical tools that evaluate the data of the past and use them to make a forecast for the future.
A rather good exchange to meet like-minded people is eToro. This is a platform for social trading that enables the exchange of information. An experienced trader can also share his/her trading bitcoin strategy and be rewarded for this. In return, beginners can learn from professionals and follow their strategies. Users can also bet on a fall in prices and thus benefit from price fluctuations in both directions.
Reading news can also help you buy or sell at the right time. Often the rate is only influenced by a certain media report. Positive reports on Bitcoin can therefore lead to a price increase and vice versa.
It’s also advisable to constantly read new books on the subject. The deeper you dive into the crypto world, the more successfully you can trade Bitcoin.
However, you should always be careful when trading Bitcoin. Digital currencies are often subject to strong price fluctuations and can therefore also incur high losses. The top rule should be to only invest as much as you are ready to lose.
Even if you can successfully trade Bitcoin, you should always stick to your plan and investment strategy. If you are too greedy and act with a higher risk, you also increase the risk of high losses. That’s it!
What other BTC trading strategies do you know? Just share your opinion in the comments!