Cryptocurrency Guide

Easy Bitcoin Trading – Top BTC Trading Tips that You Should Learn

Easy Bitcoin Trading - Top Bitcoin Trading Tips that You Should Learn

The most popular cryptocurrency out there, Bitcoin has become a favorite of many investors out there who want to diversify their portfolio and would like to have solid digital assets that can help them earn many times more over their investment.

Bitcoin trading refers to how investors speculate on movements in the price of the Bitcoin which is also abbreviated as BTC. Traditionally, this kind of trading has involved in the purchase of the cryptocurrency through an exchange with the hope that there will be a rise in its price over time. However, cryptocurrency traders are using derivatives more and more to speculate on the rise as well as the fall of prices of BTC to make maximum gains from the volatility of the digital currency.

How Can Day Trading of Bitcoin Be Done?

 

The day trading of Bitcoin means that a position will be opened or closed by you in one single trading day so that there is no Bitcoin market exposure for you overnight. This indicates that you can prevent overnight funding charges on your specific trading account.

This could be a very useful strategy; in case you are trying to profit from the short-term price movements of the cryptocurrency. It can let you make the most of the volatility that can be experienced every day in the price of Bitcoin.

How Can You Trend-Trade Bitcoin?

 

Trend-trading refers to taking a position that matches the existing Trend. For instance, if there is a bullish trend in the market you have to go long and you have to go short in case of bearish market Trend.

In case this trend began to reverse or slow, you would think about closing your position and then opening a new position to match the latest trend that is emerging.

What are Some Important Bitcoin Trading Tips to Remember?

 

These are some important tips that can help you with Bitcoin trading:

Take a decision on whether to go short or long

While trading of financial derivatives, it is possible to go short as well as long, based on the existing sentiment in the market. If you go short, then you expect a fall in the price of Bitcoin whereas if you go long – it indicates that you have expectations about a rise in its price.

 

Set your limits and stops

 

Limits and stops are vital tools for Risk Management and you have quite a few to pick from while trading in Bitcoin.

In case of normal stops, your position will be closed out at a specific level. But there could be risks of slippage, in case there is a fast change in the underlying market price.

Favorable market movements are followed by trailing stops, for locking profits, whereas capping your risks of downside. But these could be subject to slippage as well.

Your position in trading will be closed at set level during guaranteed stops, irrespective of any slippage. It is possible to set this type of stops for free but a fee will be charged in case of the triggering of your guaranteed stop.

It is often possible to choose one or more of these tools on the trading platforms of your choice. One such platform could be cryptocurrency investment.

Open your trade and monitor

 

In order to open a Bitcoin trade, you have to purchase the cryptocurrency in case you feel that there will be a rise in its price in future. In that case, you would like to sell BTC in case you sense an imminent fall in its price.

Once your Bitcoin trade is open, you have to monitor the market properly – so as to ensure that its motion is in the direction that you expected.

 

Based on the BTC trading platform of your choice, you can find some technical indicators that can provide you with assistance in determining the future of the price of Bitcoin. With the help of indicators, you can also monitor existing market conditions – such as market sentiment or the volatile rate. 

You can close your trading position for cutting a loss for making a profit. You can close your trading position to take a profit home at any time that you like. Or you may use it for cutting a loss, which has reached an uncomfortable level for you. In that case, your profits would be directly paid into your trading account whereas your losses would be subtracted from the total account balance that you have.

Also : Crypticcoin to be the next big thing in cryptocurrency world

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