Bitcoin trading is actually pretty straightforward once you get the hang of it. Being the premier cryptocurrency, it is pretty straightforward to buy and sell them as and when you want to. Bitcoin has a history of volatility which has brought in a lot of traders and media interest into the ecosystem. How to Trade Bitcoin: Quick Start Guide. Jul 20, · In short, you’ll learn everything you need to know to make profits by trading in Bitcoin! Bitcoin is the first cryptocurrency to ever come into existence, and most people view it as a threat to the fiat currency. This has brought fierce opposition from financial institutions like . Jul 29, · Best Bitcoin Trading Platforms The first step to get started trading bitcoin is choosing a reliable platform. When starting out with bitcoin trading, .
Bitcoin learn to tradeLearn How to Trade Bitcoin: Most Comprehensive Quick Start Guide
You will be redirected to a page where you can choose the payment method and also the seller to buy from. Paxful shows you a list of those sellers that accept the payment option you choose.
You have the liberty to trade with any seller that you find suitable for you. It is important to note that the Paxful fee is determined by the payment method you choose. Generally, Paxful offers low trading fees.
It provides several payment options and allows for trading Bitcoin with other cryptocurrencies. You can convert your fiat currency to Bitcoin and vice versa on Cex. The platform offers an intuitive dashboard for trading and margin trading. It is important to note that Cex. It also supports the use of credit cards in cryptocurrency trading , which gives it an edge over several other Bitcoin exchanges. It was established in and has since experienced massive growth.
Lately, eToro has become increasingly popular as a leading online trading platform. Trello draws its strength from the community of traders that it has and the ability of these traders to share strategies amongst themselves.
Related article: How to Open an eToro Account. It is important to note eToro, unlike other online brokers, offer trading in real Bitcoin and other cryptocurrencies. With your own eToro crypto wallet, you can fund and trade Bitcoin as you wish. After adding this feature, eToro has become an all-in-one broker. The platform has a good reputation and has established itself as a safe and reliable online broker for CFDs and Forex across Europe. The platform provides tight spreads, faster execution, and solid customer support, which is essential, especially if you are a novice Bitcoin trader.
FP Markets provides the MetaTrader 4 and 5 for both desktop and mobile traders. This gives you a customizable interface to work with, access to one-click trading, expert advisors, live price, and market watch details. Bitcoin is a decentralized and unregulated currency. Thus, it is difficult for it to be affected by some of the factors that affect Fiat currency.
However, certain things determine the price of Bitcoin at a given time. The following factors influence Bitcoin price:. It is important to note that BTC has a total market cap of around 21 million coins, and once Bitcoin miners finish mining all the coins, the supply of Bitcoin will end.
We currently have around Unlike other coins like ether with a high supply, Bitcoin has a low supply, which gives it a higher value. Once the supply is completely tapped out, we should expect its price to rise significantly.
Like with any other product, the process of mining Bitcoin involves the use of machines, energy, and manpower. All these resources require money.
The cost of producing the coins is transferred to the price. If the production costs are high, then the price of BTC also increases and vice versa. Bitcoin halving refers to when the reward for adding new transactions into the Bitcoin blockchain is reduced by half. It happens once in four years. It is important to note that there are over 2, cryptocurrencies in the market today. The stiff competition is likely to affect the value of Bitcoin in some cases.
As a bitcoin trader, you should be aware that different bitcoin exchanges have varying trading fees. And on top of the trading fees, sometimes the price of Bitcoin is not uniform on all exchanges as you would expect.
Cyber attacks that lead to loss of bitcoins also affect the price of Bitcoin. The security issues create fear in investors, which forces some of them out of the industry. Consequently, the demand reduces, which in turn leads to a reduced price. Since Bitcoin trading greatly relies on technology and the internet, this is a factor that will always be in play. To succeed in bitcoin trading , you have to know when and how to trade. You have to know how to recognize market trends, and easily predict price movements.
Fundamental analysis provides you with indispensable knowledge of trading. So, what is it all about? Unlike technical analysis, fundamental analysis focuses on the big picture instead of focusing on the intrinsic value of a given asset.
It is important to keep it in mind that fundamental analysis is not exclusive for cryptocurrencies. Additionally, how it is applied in cryptocurrencies is a bit different. If you realize that bitcoin is widely accepted as a payment method, you can invest in it because it will have a high demand, which equals an increase in the value of the currency.
Technical analysis focuses on the history and past performance of an asset to determine its future prices. For bitcoin trading, you can look at past trading volumes and trends. It is important to point out that technical analysis is formed because Bitcoin price movements are not random and that history tends to repeat itself.
Over the years, technical analysis has become increasingly popular with the development of advanced tools and charts that can track past prices and trends spanning years.
That is why we have hundreds of indicators used in cryptocurrency trading today. Learning how to trade Bitcoin cannot be complete without looking at how one can set up a stop-loss order. A stop-loss order helps limit risk in trading and protect an existing portion of the profit made when the market plunges. In many Bitcoin trading platforms, you will always be given the option to open a stop-loss order, and you can always modify the order as you wish.
When executing a trade, you can specify your stop limit to activate at a static price point. Once the Bitcoin price falls past a certain level, or based on a percentage of the current market price of Bitcoin, usually a negative offset. Take the stop-loss order as your exit plan should things not go as planned. With a stop-loss order, if the trade goes against your expectations, you can easily exit without any suffering risk.
A trending Bitcoin market is one that reaches a certain position and maintains it for an extended period. The trend-following approach relies on technical analysis to predict the behavior of the market. You should open your trade position at the onset of the trend, and when you believe that the trend will continue to move in its current direction. Trading averages, the stochastic oscillator, and the relative strength index are great tools to determine the direction of a trend.
Trading Bitcoin with leverage focuses on making profits from small price movements. It allows you to effectively control your portfolio as it grows. The principal amount used in Bitcoin leverage trading is referred to as margin. Bitcoin trading can be profitable if carried out properly, but it also has significant risks.
As an investor, it is prudent to be aware of the risks associated with Bitcoin trading before committing yourself. Some of the risks in Bitcoin trading include:. Over the years, there has been a significant number of cyber attacks on exchange platforms, although Bitcoin itself has never been hacked, which left most people devastated. It is this constant fluctuation in the price of Bitcoin that makes it a risk trading.
As an investor, there is no way that you can be assured of getting a return on your investment. In some cases, you may even suffer great losses. However, if you want to reduce the risk, you must keep a keen eye on the market trends and trends in Bitcoin trading.
Also, invest small amounts while starting. Aside from hacking, there are also various instances where traders get defrauded in the Bitcoin market. With the exponential number of people getting into Bitcoin and cryptocurrency trade, some of the created exchanges are often fake.
Though relevant financial authorities and bodies continue to sensitize traders how they can protect themselves from fraud, cases are still reported. This security problem remains a big problem for investors, and if you are just getting into the Bitcoin trade, be careful only to trade with established exchange sites like Binance. Currently, there is no established body or arm that regulates the Bitcoin market.
Additionally, many governments are yet to give their clear stance on cryptocurrency trade in their respective countries. The trade has several loopholes, which may make it interesting to get into, such as no taxation. However, if the governments realize that the Bitcoin trade is creating stiff competition for them, then chances are Bitcoin trade will get banned like it is in China. Although Bitcoin is one of the greatest innovations of our time, it is yet to be fully accepted, and only a few companies and merchants accept it as a form of payment.
The stores accepting it are few, and even travel and hospitality companies that allow customers to pay using Bitcoin are limited. Its limited use denies it the importance that fiat currency has. The fact that one may find it difficult to find a place where his or her BTC can be accepted as payment is one of the reasons why Bitcoin may never overtake the traditional Fiat currency. Bitcoin is a virtual currency that fully relies on technology.
Mining of new Bitcoins requires technology, buying and selling the same also depends on technology, and the storage also relies on technology. This means that without the required technology, Bitcoin has no value. As more people get into the Bitcoin trade, a bubble economy is created, which can burst at any time, rendering Bitcoin useless.
If this comes to happens, many traders may suffer very painful financial losses. Well, Bitcoin has been around for around ten years now, which makes it a significantly young technology. Over the years, it is yet to develop into something solid, and we continue to witness changes. As a result, it is not possible to tell what Bitcoin will look like tomorrow.
The most valued currency today may end up useless in the future. Until it is fully established, one should only trade with caution. As an investor that wishes to get into Bitcoin trade, practice caution as you start, carry out due diligence and only invest amounts that even if you lose, there will be no significant impact on your financial strength. Additionally, you should take the necessary steps available to secure your investments, and brace yourself for any outcome.
Kraken also offers discounts to high volume traders, something not many other exchanges offer. Although Kraken offers some of the best feature sets and a selection of many altcoins, it suffers from a lack of popularity in Canada. Some of the CAD pairings that they offer have low trading volume, meaning if you are planning on buying a large amount, you may encounter price slippage and pay a higher price than you would have hoped for your digital currency.
Kraken benefits from being a top international exchange and has good support as well as constant upgrades. The moment you become a verified member, you are entitled to use any payment method you want to fund your Bitbuy account. For verfiication, you will need to submit the required KYC details. The documents you must submit are:. The entire verification process usually takes between one to three business days. Bitbuy also has very prompt customer support.
You can do the following to receive support on your query:. Bitbuy is a division of First Ledger Corp, which is a Toronto based blockchain and digital currency company.
They have stated that the exchange complies with all Canadian laws. They have also taken the following precautions to keep your data safe:. If you are a Canadian citizen, then you can go to Bitbuy right now and create your own account to start trading. Click here to create your account. There are a lot of ways that you can trade Bitcoin and cryptocurrencies and it is entirely dependent on what you want to gain from your investments and how much time are you willing to give to trading.
As per IG , there are four main kinds of trading:. Day traders open and close their position within one single trading day. This strategy works for traders who want to take advantage of short-term opportunities in the Bitcoin market which may come about in light of developing news or emerging patterns. Swing traders catch trends in price movements the moment they form and hold onto it until the trend experiences a reversal.
This strategy is great if you want to take advantage of market momentum. Make several intra-day trades on minor price movements. If you are the kind of trader who would make several small frequent profits rather than wait for a big opportunity,.
If you are a long-term holder or you want to just get into the crypto market and try out your hand then passive trading may be ideal for you.
The idea is as straightforward as it is timeless. Wait for the price to drop to a certain level and buy-in. Wait for the price to go up to a certain level and buy out. Unlike the other forms of trading, the time length between buying and selling can last for several days, weeks, months, and even years. The two most important tools to keep in mind while trading, are fundamental analysis and technical analysis.
This analysis looks at the big picture instead of price movements. When you are doing a fundamental analysis of a coin, you are looking at:.
Keeping yourself up-to-date on all the current events is imperative for solid fundamental analysis. Technical analysis is a tool, or method, used to predict the probable future price movement of a currency pair, cryptocurrency pair, or stock. It can be creative and dynamic which helps you gain a very deep perspective into the coin.
You can read the first part of our two-part guide on technical analysis to gain more insight. Sure you can gain a lot but you can lose a lot as well. Take your time and do some research. Learn about the coins and learn about certain trading strategies.
Learn about the exchanges and choose the one which will benefit you the most. Also, people tend to invest in the same coins that their friends are investing in. While there is nothing in taking advice, you should combine advice with your own research.
Fear and greed are the two most common emotions when it comes to investors. Fear can cause you to not dive into a coin when it is ready or it can cause you to leave your trade prematurely.
Conversely, greed can cause you to have blind and baseless faith in a particular coin or it may make you hold on to a trade way past its expiry trade. Do not give in to emotions, stay as rational as possible. However, what separates the professional traders from the novices is the ability to learn and grow from those mistakes.
If you misread the same pattern a second time then it is completely on you. Actually, this point provides a pretty awesome segue into our next section which is…. Every exchange has its own wallet , however, it is not the safest of options. If you plan on holding on to your crypto for a long time then you should look into cold wallets.
The two kinds of cold wallets that we would recommend are hardware wallets and paper wallets. Hardware wallets are physical devices where you can store your cryptocurrency. They come in a few forms but the most common is the USB stick style typified by the Nano Ledger series.
Although many swear by them, hardware wallets are still prone to compromise. This applies to those bought from the company themselves, but particularly if a hardware wallet has been acquired second hand.
Under no circumstances should anyone ever use a pre-owned hardware wallet. Although loss or damage can spell disaster for the unprepared, hardware wallets can be restored. You should keep restoration details in a safe place that only you, and anyone you plan to leave the money to know about. Remember, your restoration details open the wallet. Think very carefully about who if anyone you share them with. Paper wallets are an offline cold storage method of saving cryptocurrency. It includes printing out your public and private keys in a piece of paper which you then store and save in a secure place.
The keys are printed in the form of QR codes which you can scan in the future for all your transactions. The reason why it is so safe is that it gives complete control to you, the user.
You do not need to worry about the well-being of a piece of hardware, nor do you have to worry about hackers or any piece of malware. You just need to take care of a piece of paper. This makes it an economically viable option. You can go to Wallet Generator to create your own Bitcoin paper wallet. Whatever you have learned in this guide should help you get started with your trading.
However, you will need to keep learning and to gain more and more knowledge. Having said that, you should be at least ready to make your first simple trade.
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