Sep 17, · Best Way to Store Bitcoin in Learn the different methods for storing Bitcoin and which one I've found to be the safest. The best way to store Bitcoin, or any cryptocurrency, is a hardware wallet. The Total Beginner's Guide to Cryptocurrency Trading (Bitcoin, Ether and More). Apr 14, · The best Bitcoin trading strategy is an 85% price action strategy and a 15% cryptocurrency trading strategy that uses an indicator. Now Before we move forward, we must define the mysterious technical indicator. You'll need this for the best Bitcoin trading strategy and how to use it: The only indicator you need is the/5(48). Bitcoin Trading for Beginners | How to Get Started
Best way to learn bitcoin tradingThe Best Bitcoin Trading Strategy - 5 Easy Steps to Profit
Bitcoin has a history of volatility which has brought in a lot of traders and media interest into the ecosystem. It is extremely easy for anyone to trade Bitcoin as the barrier for entry is so low. So, how do you get your slice of the pie? Well, this guide will help you make your trading decisions. The reason why you should invest in Bitcoin, and cryptocurrencies in general, is because there is nothing quite like it. There are several features that makes Bitcoin trading both exciting and unique.
Binance Jersey allows users to trade euros and British pounds with bitcoin and ethereum and access digital asset management services. Quite similarly, Australian markets lost USD 30 billion. However, Bitcoin was a whole different story. From all these three cases, we can make one simple and obvious conclusion. People have a tendency to invest in Bitcoin when faced with unstable markets and obstacles confronting fiat currencies. Unlike stock markets, Bitcoin is open 24X7. The reason being stock markets are specific to the country they operate in and usually reflect the working hours of that country.
Anyone can purchase bitcoin on most of the exchanges. Bitcoin and cryptocurrencies, in general, are infamous for its rapid and frequent price movements.
This volatility can help traders make an easy, quick buck. Before you invest in an asset, you should at least know how it works. We have covered the mechanics behind the crypto several times here in detail. However, for the uninitiated, we will give a brief overview. If you are already aware of the mechanics, then please skip to the next section.
The blockchain is a time-stamped series of an immutable record of data that is managed by a cluster of computers not owned by any single entity. Each of these blocks of data i.
Ok, so what does that mean in simple terms? Imagine a universal ledger that anyone can download and write into. Anybody who has a copy of that ledger can:.
That is what Bitcoin gave to us, the first proper implementation of a technology that can act as an immutable and transparent ledger. This innovation gives us a system that is completely incorruptible and free from human corruption since each and every transaction made into the blockchain can be checked.
Through public key cryptography. Every Bitcoin user has a private key and a public address that are both mathematically derived from each other. So, how does it work? It is actually pretty straightforward. The public address is like your account number and the private key is like your PIN code When you receive Bitcoins, people will send it to your public address. You can then send your Bitcoins to anyone via your private key. So, going by that explanation, we can make two observations:.
This should give you a brief idea of what Bitcoin is and how it works. This is the reason why Bitcoin has become such a big deal.
The exchange serves as one of the most critical functions in the crypto ecosystem. It acts as a portal between the Fiat world and the crypto world.
A cryptocurrency exchange is similar to a stock exchange, but with a focus on cryptocurrency tokens rather than stock trades. Put simply, a crypto exchange is a platform where customers can buy and sell cryptocurrency assets. Broadly speaking, there are two forms of crypto exchanges:. Fiat to Crypto exchanges helps you buy Cryptocurrencies in exchange for Fiat money. These exchanges have been designed to be as beginner-friendly as possible. Kraken and Coinbase and Bitbuy are perfect examples of fiat-to-crypto exchanges.
Binance is a fine example of a crypto-to-crypto exchange. These are the exchanges that are geared more towards the experienced traders than the beginners. Crypto exchanges deal with an insane amount of money on a daily basis. In fact, check out how much the top 5 exchanges ranked according to transaction volume in the last 24 hours measure up:.
So, where exactly do you get started? If you are Canadian then the answer is pretty straightforward. Bitbuy is a Canadian owned and operated digital currency platform. Founded in , Bitbuy has consistently provided Canadians with a dependable and trustworthy platform to buy and sell their cryptocurrencies. As already explained, Bitbuy was a fiat-to-crypto exchange where you can deposit Canadian dollars directly onto their website, to be exchanged for digital currency.
Their headquarters are located in Toronto, Ontario and their services are available for Canadian traders across the country. Here are some of the top cryptocurrency exchanges in the market:. A cryptocurrency is really no different than the money you have in your wallet.
They have no intrinsic value. And cryptocurrency is just bits of data while real money is just pieces of paper. Unlike fiat money, Bitcoins and other cryptocurrencies have no central bank that controls them.
This means that cryptocurrencies can be sent directly from user to user without any credit cards or banks acting as the intermediary. When you print lots of money, inflation goes up which makes the currency value going down. There is a limited amount of Bitcoins. This holds true for the majority of the other cryptocurrencies. We will use our best Bitcoin trading strategy. We also have training for the best short-term trading strategy. While long term traders prefer to hold their bitcoin positions for extended periods of time, day traders have discovered that Bitcoin is lucrative for many reasons:.
Because Bitcoin is more volatile than other tradeable assets, there will be a high number of profitable trading opportunities occurring each day. Like ordinary currencies, using technical indicators will make it easier to tell when price increases are likely to occur. Volume, relative strength, oscillators, and moving averages can all be applied to Bitcoin day trading. It is important to pay attention to technical indicators and developing trends. In this next step, we will talk about OBV trading and how to get started buying and selling cryptocurrencies.
This is a cryptocurrency trading strategy that can be used to trade all the important cryptocurrencies. Before we move forward, we must define the mysterious technical indicator. You'll need this for the best Bitcoin trading strategy and how to use it:. It is used to basically analyze the total money flow in and out of an instrument.
The OVB uses a combination of volume and price activity. This tells you the total amount of money going in and out of the market. How to read the information from the OBV indicator is quite simple. Here you can learn how to profit from trading. In theory, if Bitcoin is trading up and at the same time the OBV was trading down, this is an indication that people are selling into this rally. The same is true in reverse if Bitcoin was trading down and at the same time the OBV was trading up. What we really want to see is the OBV moving in the same direction as the Bitcoin price.
In this regard, our team at Trading Strategy Guides uses the OBV indicator with other supporting evidence to sustain our trades and gain more confirmation. The next step comes from the Ethereum trading strategy which will be used to identify Bitcoin trades. Now, before we go any further, we always recommend taking a piece of paper and a pen and note down the rules of the best Bitcoin trading strategy.
Your chart setup should basically have 3 windows. One for the Bitcoin chart and the second one for the Ethereum chart. Last but not least, make one window for the OVB indicator. If you followed our cryptocurrency trading strategy guidelines, your chart should look the same as in the figure above. Simply put, we are going to look after price divergence between Bitcoin price and Ethereum. Smart money divergence happens when one cryptocurrency fails to confirm the action of the other cryptocurrency.
For example, if Ethereum price breaks above an important resistance or a swing high and Bitcoin fails to do the same, we have smart money divergence. And the Ethereum trading strategy as well. In the above figure, we can notice that Bitcoin's price fails to break above resistance while Ethereum's price broke above and made a new high. This is the first sign that the best Bitcoin trading strategy is about to signal a trade.
The same principles have been true for all the other major asset classes for decades. Before buying, we need confirmation from the OBV indicator. This brings us to the next step of the best Bitcoin trading strategy. If Bitcoin is lagging behind the Ethereum price it means that sooner or later Bitcoin should follow Ethereum and break above the resistance.
Simply put, the OBV is a remarkable technical indicator. It can show us if the real money is really buying Bitcoin or if they are selling. What we want to see when Bitcoin is failing to break above a resistance level or a swing high, and the Ethereum already broke, is for the OBV to increase in the direction of the trend. We also want it to move beyond the level it was when Bitcoin was trading previously at this resistance level see figure below.
Here is how to identify the right swing to boost your profit. Now, all it remains for us to do is to place our buy limit order, which brings us to the next step of the best Bitcoin trading strategy. Once the OBV indicator gives us the green signal, all we have to do is to place a buy limit order. Place the order at the resistance level in anticipation of the possible breakout. After all, we told you the OBV is an amazing indicator.
Now, all we need to establish is where to place our protective stop loss and when to take profits for the best Bitcoin trading strategy. Placing the stop loss below the breakout candle is a smart way to trade. When it comes to our take profit, usually an OBV reading above , is an extreme reading that signals at least a pause in the trend. This is where we want to take profits.
In the figure below, you can see an actual SELL trade example, using the best Bitcoin trading strategy. While bitcoin day trading does have some risks, there are many ways these risks can be reduced. Here are some of the top ways to enhance your Bitcoin trading strategy. Maybe one day our fiat money system will go under and be completely replaced by cryptocurrencies.
It will explain the differences between the various types of cryptocurrencies and go more detail on how they work. There will only ever be 21 million Bitcoins in existence, so there's a limited supply. This is what makes Bitcoin much more valuable than other cryptocurrencies that have a larger maximum supply, or have no maximum supply.
You don't have to buy whole Bitcoins, you can use very small fractions of a Bitcoin to do transactions. You buy Bitcoin by going to an exchange like Coinbase. Setup an account and purchase some Bitcoin with your credit card or bank account. The Bitcoin you buy will be held in your Coinbase wallet until you're ready transfer it to your own wallet. Get the complete step-by-step guide to buying Bitcoin for the first time here. These wallets come in different forms, each type of wallet has benefits and drawbacks.
I'll get more into specific wallet solutions, later in this post. The important thing to understand is that a wallet is basically a database entry on the Bitcoin blockchain and is made up of a private key and a public key.
It's important that you control your private keys. Some storage solutions don't give you the private keys to your wallet, so you should not keep a large amount of money in those wallets.
There are many different solutions to store Bitcoin, but there are 2 primary types of storage. Cold storage is a method of storing Bitcoin offline.
It's called cold storage because the private keys are stored offline. It's like that long-term chest freezer that people have in their garage. Well, you aren't actually storing the currency on a piece of paper, you're only storing the public and private keys. It's like storing your website passwords in a notebook. The benefit of this storage method is that you don't need any electricity to store your Bitcoin, it's can't be hacked online and it's very portable.
On the downside, the paper can get damaged or lost easily. If you don't use the right type of paper and ink, it's also prone to smudging or fading.
You can learn the best practices for creating a paper wallet for Ethereum in this tutorial. The private keys are kept offline on a dedicated hardware device such as a Ledger, which looks like a USB stick. Here are a couple of examples, next to a phone, for size comparison. These types of devices generally provide multiple layers of security and allow you to recover your wallet, even if you lose your device.
So hardware wallets provide the best of both hot and cold wallets. They allow you to safely control your private keys, but also make it fairly easy to create transactions. A hot wallet is a wallet where the private key can potentially be exposed to the internet.
The wallet is password or security protected obviously, but there is always the chance that a hacker could crack the password and get access to the private key of the wallet. Therefore, you don't want to store large amounts of Bitcoin in a hot wallet for a long period of time.