If you get the basics right you’ll have no trouble. You need a Bitcoin wallet to hold your Bitcoin and an account on a Bitcoin exchange.
So you want to become a Bitcoin trader? Well, there are a few things you need to learn first. You probably know that Bitcoin is one of the most popular cryptocurrencies in the world. If you do, then you also know that there are more people like you who are trying to get into trading.
Bitcoin trading is not an easy thing to master. However, if you get the basics right you’ll have no trouble on the market. Naturally, you need a Bitcoin wallet to hold your Bitcoin. You also need an account on a Bitcoin exchange. That’s because you’ll come across other traders that do the same thing as you.
Bitcoin Traders and Bitcoin Investors: What’s the Difference?
Bitcoin trading means to buy Bitcoin at a low price and sell it at a higher one. However, there are two types of traders you’ll come across on the market. These are the Bitcoin traders and investors. The investors are those that buy Bitcoin for the long term. This means that they do so with the expectation that the price of it will rise.
Ups and downs will occur but the outcome will be a higher price. These people believe in the technology and/or the team behind the currency which is why they choose to invest in it. To put it simply the investors hold on to the currency.
On the other hand, Bitcoin traders are more oriented towards the short term. In other words, they buy and sell Bitcoin whenever there’s a profit to be made. In certain cases, these people don’t study the technology or the ideology as they see Bitcoin as another profit source. However, that isn’t always the case.
The best part about trading with Bitcoin is that you can trade 24/7. You don’t have to wait for a traditional market to be available during certain working hours. Additionally, Bitcoin is known to be pretty volatile. This means that if you play your cards right then you can profit substantially.
In that regard, you can get the help of various sites and apps online. Trading robots are also pretty popular. One such software you can rely on is the Bitcoin Champion software. First, you’ll need to register, and then you need to deposit the minimum amount of $250. After that, you’ll need to adjust the robot’s settings and it will do the job for you.
The Different Trading Methods
There are several different trading methods that you’ll come across. One of the more popular ones is the Day Trading method. These traders trade away during the day and close the shop at night. Another popular method is Swing Trading. These traders try to anticipate the swing of a price and enter the trade at that moment. They usually hold on to it until the end.
Scalping is another trading method that you’ll run into. This is a day-trading method and traders like this make profit based on short price changes. By making profits in the short term minimizes the risk and gives you an advantage. There are several other trading methods available.
How to Predict the Bitcoin Price?
People that have spent a long time on the market usually have a good idea of the time when the price will rise or fall. You’ll also come across more than one way to predict the price but the truth is that there’s no foolproof way of doing so. That shouldn’t stop you from making an analysis. This will give you a better understanding of how the price moves.
In general, there are 2 types of analysis you can conduct. These are the technical and fundamental analysis. The technical one helps you predict the price by studying market statistics. This means you go over the past price movements and try and identify price patterns. This will help you determine whether the price will go up or down. Also, this analysis doesn’t take into account what’s happening in the world.
The fundamental analysis takes these events into account. In this analysis, you go over the regulations and news about Bitcoin and factor them in when trying to predict the price. For example, if a country decides to ban Bitcoin then you might expect a price drop. However, both analyses aren’t a sure way of predicting the price.