How To Trade Bitcoin And Be A Successful Trader?
That event has drawn the attention of millions of investors around the world, bringing new people to the market. Countries around the world that have not accepted Bitcoin yet are starting to consider it, and many of them even have lifted their bans. Many countries like India and Iran, which previously used to have a harsh stance on crypto have started to embrace them. This opens up the path to many new investors and traders in the industry and with that comes the need for a proper Bitcoin Trading Guide.
Bitcoin Trading For Beginners: Where To Start
If you are also looking forward to the best tips that would help you succeed from Bitcoin trading, then you’ve come to the right place. Here, you will learn about how to trade Bitcoin and top strategies that would help you get profits with trading.
If you are a beginner, the first step is nothing else but to research and study more and more regarding the topic. You can find various guides on the internet about cryptocurrency and all the basics you need to know before starting investing in it.
The second thing you need to make sure before trading in cryptocurrency is to have enough savings. There’s no point in investing all your savings in the field as there are always fifty-fifty chances of losing and winning. The first tip any crypto investor would give you is to invest only as much as you can risk losing. One of the significant reasons behind this saying is that the fear of losing all investments robs investors from making the right decisions. The panic of losing all your savings would make you sell your funds even when the market shows a slight decline. If you’ll invest the amount you are comfortable losing, you would be free of any worries and can prevent yourself from panic selling.
How to Trade Bitcoin: Four Simple Steps
Without a doubt, crypto trading is not a game for kids. It’s much more complicated than it seems and no matter how safe you play, you would fall at times. You can research as much as you can to clear your concepts, follow the proper procedures, but you won’t learn until you lose. And if you are new to the sector, the best way is to start from scratch. Invest a little and then trade, buy, exchange, play as much as you can to get your hands dirty. Every time, you’ll suffer a loss, or gain profits, you’ll learn something. So, to get started, you need to follow these steps first.
Top Exchanges for Trading Bitcoin & Cryptocurrencies
When investing or trading in Bitcoin, the first concern that surrounds the investor is in choosing a reliable crypto exchange. While it’s only you who can decide which Exchange would best suit your need, we can at least help shortlist a few top crypto exchanges in markets. Given below are the list of top Bitcoin trading Platforms. Make sure you research thoroughly about the Exchange before you open an account in it.
TradeStation
TradeStation is considered as the top Bitcoin trading platform that allows users to sell, buy and trade not only Bitcoins but also altcoins including, Ethereum, Bitcoin Cash, Litecoin, Ripple and many more. Whether you are just trying out things around crypto yet or even if you are an institutional-grade grade, TradeStation can cater all your needs.
Coinbase
Coinbase, as you must have heard already, is the world’s largest crypto exchange. Not only Bitcoin, but the Exchange also supports many other altcoins such as Ethereum, Dash etc. It is considered as a beginner-friendly platform with easy to use interface. The exchange enables its users to buy cryptocurrency directly with their debit cards.
Bitterex
Apart from Bitcoins, if you are interested in trading and playing around various altcoins, then Bitterex is your best bet. The only drawback of Bitterex is that it doesn’t provide a desktop or mobile platform.
Kraken
Kraken is one of the most trusted exchanges established in 2011. The crypto exchange platform supports plenty of cryptocurrencies that includes Dash, Dogecoin, Ethereum, Monero, Algorand and many more.
At present, the Kraken is only available for web, and there’s no mobile application for mobile devices. The best thing about Kraken is that it offers a maker-taker fee schedule which is comparatively low than others.
Tips That Will Help You Become A Successful Bitcoin Trader
Given below are the tips you would need to succeed in Bitcoin Trading and make profits out of it. Follow these tips to earn profits with Bitcoin Trading once you are all cleared with your basics about how to trade bitcoin.
1. Set Cut Loss And Profit Target Price
As you know, Bitcoins and not only Bitcoin but all cryptos are volatile in nature. Because of its unpredictable nature, the prices of Bitcoin goes up and down quickly, which is the reason for all the confusion. New investors always make a mistake to sell their crypto sometimes out of panic and sometimes out of excitement which in future turns out to be a loss.
So, in order to prevent any such mistakes, it is recommended that you set your Profit and Loss limit in advance. Placing a cut loss target will save you from potential losses in future. For instance, if the price of bitcoin goes down, you will wait in the hope that the price would rise again and then could end up not selling. But if you would have set a cut loss target, you would have sold your cryptos right before going into the losses.
2. Develop Chart Reading Skills
One of the most important things that you need to learn if you are stepping into the crypto industry is chart reading. Although technical analysis is not a game of kids and would take time to get into your head, you need to at least clear your basics about it. Most new investors confuse Bitcoin trading to market speculations only and neglect the technical analysis. If you want to be a successful cryptocurrency trader, you need to develop skills to read analytical charts in order to strategize the trades.
The two most commonly used charts for technical analysis in the crypto industry are Candlestick and Order book. Although, it is just not limited to it, and there are many types of charts used to read the trading patterns and speculating the potential surges and declines. In the beginning, you might find these charts extremely intimidating, but with time as you learn to read them, you could develop an understanding that would help you grow in cryptocurrency. Once, you’ll start your research and learn more about technical analysis; you would come to know about many more terms, strategies, tables and charts that will help you with the trading. All this knowledge will help you make calculated decisions and prevent you from possible losses.
3. Subscribe to Bitcoin News
Don’t forget to stay tuned with the recent events and news regarding cryptocurrency. Apart from speculating price from technical analysis, news and the latest events also affect Bitcoin prices to a great extent. So, to keep yourself up to date with Bitcoin and crypto news, follow trusted news websites.
4. Set Stop-Losses Before You Start Trading
Determining stop-loss order for your trades can be a hard nut to crack as if you would set them too far, you could suffer significant losses, and if you put them too close, you could risk getting out of the position very quickly.
A Stop-loss order position is nothing else but setting an affordable risk threshold. The following help you limit your losses eventually benefitting you with your Bitcoin trading. For instance, if you are comfortable at keeping the stop-loss order below 20% of your actual price at which you bought the stocks, then place the trailer there. However, you are recommended not to set the stop loss too far to prevent significant losses. Decide your stop before you start trading in Bitcoin.
5. Don’t Rely on a specific coin
Bitcoin without a doubt is still the industry’s leading cryptocurrency, but as the time is passing many other currencies are proving themselves beneficial. If you trade in a particular coin, there would be more chances of you going down. But if you’ll diversify your trades to other currencies such beyond Bitcoin including altcoins such as Ethereum, Ripple, Litecoin etc. then it would reduce the daily risk associated with a single coin.
Conclusion
So, these were some important tips for new investors stepping into the crypto industry for trading. We hope you have no more doubts left about how to trade bitcoin and ready to give it a shot. Keep the tips in mind before you start trading and do thorough research about the same if you have left any doubts. As a beginner, you might find all these quite intimidating, but you can get through it with some hard work and determination to become an expert in Bitcoin trading.
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