Bitcoin has substantially grown in popularity over the past few years. In fact, in the crypto market, Bitcoin is
considered the leading crypto as of this moment. Despite other tokens emerging, no other crypto seems to be
able to dethrone Bitcoin.
The best way to make some money with bitcoin is to buy and sell. The fluctuating price of this
cryptocurrency makes it a target for traders. Trading Bitcoin deals with buying when the price is low and
selling when the price rises. Unlike other forms of investments, which means holding up for a long time,
trading involves trying to predict the movements of price by learning about the industry and the entire price
graphs. To trade successfully, one needs to invest some time, effort, and money before becoming good at it.
There is a big money making potential for trading Bitcoin, and many people are taking advantage of this.
The growth in popularity has made a global buzz among traders, investors and consumers. The speed of
transaction, increase in value, low fees, and other additional factors have influenced people all over the
world to make Bitcoin one of their major exchange modes. Due to this, most traders have capitalized on this
How to successfully make money through trading Bitcoin
In a market that is often described as being turbulent, dedication and discipline are the two most important
prerequisites to achieve success. Losing money as a result of trading mistakes can be disheartening. So, how
can an individual avoid making these errors and continue making money?
Learn about technical analysis
Bitcoin is different from other assets or currencies. There is no governing body or central bank that can
influence the valuation of this currency. There could be unpredictable impacts as a result of news events, and
other instruments can have correlations. In a nutshell, the pricing of Bitcoin are highly speculative, ignoring
most of the financial theory of trading. Having knowledge of the major technical analysis is a must before
beginning trading in the market. In a lot of ways, the price is the only factor that can provide a clue on the
future value of Bitcoin. The absence of market fundamentals makes it difficult to analyze price charts, apply
indicators and read price action.
Have a reason for each trade
While entering a trading position, ensure you know it is the right time, and do so with a clear strategy. Not
all trades can be profitable, since for everybody that benefits, another person stays are the receiving end of a
Have a stop loss mechanism
Also, for every trading position, have a precise target to make profit, and have a level for stopping loss.
Having stop-loss level deals with choosing the highest level of loss you can afford before closing the
position. There are a lot of factors that can be considered to correctly select a stop-loss level. Most traders
fail to do this when they get too passionate about the coin or their positions.
Have the right pace
Remember that trading is a marathon, and not a sprint. The biggest task Bitcoin market participants have is
making a plan that can be sustainable over a long time. Putting long hours daily results to subpar or a
burnout performance. Bitcoin has long market hours. It is not possible to effectively trade throughout the day
without rest. The best way to go about this is to have a schedule that is manageable by taking note of the best
trading periods and exclusively focus on those times.
Take note of news items
This currency is unique in such a way that typical news doesn’t have an impact on predicting the markets. It
has no schedule WASDE, GDP releases or EIA reports to increase participation or influence pricing.
Unexpected news however can influence the price of Bitcoin. It is important for Bitcoin traders to have
access to live news feed and monitor it regularly.
Have a good leverage
This may sound like a cliché, but having leverage can be seen as a double-edged sword. It has the potential
to increase gains, but it can also magnify losses. Having lots of leverage will promote recklessness in
managing money and can result to you exhausting your trading account. Having little leverage can deter
performance because traders might not perform to their maximum capacities. Generally speaking, to be
successful in Bitcoin trading, you must have a balanced leverage management.
What you need to do before you get started
If you are new to Bitcoin trading, you will probably be lost, but don’t worry. In general terms, a trading
process involves these simple steps:
- Setting up an exchange account and depositing funds for the purchase of your first Bitcoin. Making use of an exchange is an easy way of gaining access to buying and selling Bitcoins. Make sure you make use of an
exchange that has a good reputation.
- You might want to open additional accounts with other exchanges to mitigate the risk of losing all your
money in case your main account crashes.
- Choosing a right trading strategy. There are several strategies involved in trading Bitcoins – you might
decide to be a day trader, a swing trader, or the trader that waits for stability in the market. Make sure you
have the right strategy that will guarantee you the biggest winning potential.
- After doing this, you can start studying the market for the right opportunity to trade.
Although trading Bitcoin is relatively easy, the secret is investing money you can afford to lose, because as a
result to many factors, you might have to sell at a loss. Also, you need to come up with a place to store you
Bitcoins – that place has to be secured. You can do it yourself by making use of a Bitcoin client. When
doing this, ensure you computer is secured so that you avoid any loss. It is also possible for you to store
them online using the exchange provide you’re using.
If you follow these principles, you should be able to make some profits in Bitcoin trading. It is important for
you to consider your commissions, taxes and other things that can be involved with Bitcoin trading. Trading
Bitcoin offers a regulated and secured revenue generating market.