Trading in cryptocurrencies like Bitcoin and more is the hottest business move of today. With the ever-increasing market cap of Bitcoin, buying and selling cryptocurrency has become the most profitable venture for thousands of traders and investors worldwide. The fundamental principle of Bitcoin trading is speculation on the prices of Bitcoin for making profits. The trader has to make the best of Bitcoin prices’ volatility for raking in a decent income from the Bitcoin market. If you are a Bitcoin trader or an expert at Bitcoin trading, then you are at the right place. Read on to learn about the nuanced aspects of Bitcoin trading right here.
What Is Bitcoin Trading?
Bitcoin trading is the simple process of buying and selling Bitcoin to make profits. The trader analyses the price pattern to detect the rise and fall in the price of Bitcoin and the basic rule of Bitcoin trading is to buy the Bitcoin assets when its price is low and later sell it when its price rises to incur a profit on the price.
How Bitcoin Trading Works?
Bitcoin trading works by analysis of the market trends and price patterns of Bitcoin. The Bitcoin markets operate 24×7, enabling trading and investment in a significant volume of Bitcoin assets. The most popular form of Bitcoin trading is day trading. Hundreds of traders and investors who do not have sufficient trading capital engage in day trading. Day trading involves buying the Bitcoin at a lower price and then holding on to it until the market price of Bitcoin increases. The day-to-day trading in Bitcoin leads to the incurrence of short-term profits. Such a trading move is not preferable for long-term profits.
How to Trade Bitcoins?
Apart from day trading, there are different forms of trading in Bitcoin, as explained below:-
Trend Trading
In trend trading, the trader opens a position that is in tandem with the current price trend of Bitcoin in the market. For instance, if there is a bullish trend in the market, then the trader strikes a long position and vice-versa when the trend is bearish. The trader closes the position when the trend slows down or reverses direction.
HODLing
The HODL strategy refers to the trading style of purchasing Bitcoin and holding on to it until the market conditions become favorable for selling the assets. HODLing is usually beneficial for raking in long-term profits.
Bitcoin Hedging
Bitcoin hedging refers to the opening of simultaneous trading positions opposing each other in a way to make the most of the fluctuating market trends. Hedging helps in protecting the trader against losses and financial risks.
When Is the Right Time to Trade Bitcoin?
The peak hours for trading in Bitcoin are between 8 a.m. and 4 p.m. in local time. This period experiences the highest volume of trading, thereby leading to a rapid rise and fall in Bitcoin prices.
Bitcoin Trading: List of Platforms
There are several platforms of Bitcoin trading, some of which are listed below:-
- CoinBase
- Kraken
- eToro
- Bittrex
- Gemini
- Trade Station
However, if you want to invest or trade in Bitcoin just want to make a good profit from it then you must find out Bitcoin Revolution platform. It is an automated trading platform that helps its members to get the maximum profit from Bitcoin trading. You can know more about this amazing platform by reading its review.
Conclusion
Now that you are well aware of Bitcoin trading, it is now time to register with a platform to get started with Bitcoin trading and investment. Study the market trends thoroughly and stay within the limits of your capital to prevent losses—Master the art of Bitcoin trading to rake in a decent income from the market.
FAQs
Is Bitcoin Good to Trade?
Bitcoin is a profitable asset, but it is sometimes risky to trade in Bitcoin as it is too volatile most of the time. The price of Bitcoin surges and plummets at an alarming rate leads to acute trading and investment losses.
How Much Money Do You Need to Start Trading Bitcoin?
The minimum capital required for trading in Bitcoin depends on the policy of the trading platform. At CoinBase, the traders need to invest an amount as low as $2 for Bitcoin trading.
Is Bitcoin Trading Safe?
Bitcoin trading is safe as long as one sticks to thorough market analysis to buy and sell Bitcoin. It is also very important to invest as much as one can afford to lose to avoid bankruptcy while trading.
Can I Get Profit From Bitcoin Trading?
It is possible to rake in rich profits from Bitcoin trading by buying Bitcoin when the price is low and selling it when its price rises. One can make short-term profits through day trading and long-term profits through hedging and HODLing.
