The cost of a cryptocurrency is continually changing. This allows you to earn on the fluctuations (growth, fall) of the course. The question “How to Trade Bitcoin” is relevant in a unique way. After all, this “currency” is very volatile. If you get into the trend, earnings will be huge. The risks are also significant, but they are easily compensated with a competitive attitude to the purchase/sale process.
How to protect investments and not be distracted from trade
Before you start trading on the cryptocurrency exchange, it is recommended to take care of the safety of your money. If a passport restores access to bank accounts with banks, this is not provided for with cryptocurrency. The loss of a wallet is equivalent to the complete loss of all the money that was on it. The protection procedure is similar to other online resources, but if there is no particular need to adhere to the rules strictly, they are mandatory here.
Ways to enhance the security of personal finances in a BTC wallet:
- Set complex passwords with numbers, punctuation, uppercase letters;
- Do not store access codes on a computer (it is better to write them on paper and hide them);
- Use 2FA authentication (two-factor);
- Complete verification on exchanges (photo with passport, etc.).
If everything is done correctly, trading cryptocurrencies on the exchange will be a pleasure. Earnings on bitcoins are not enough to get. It must be preserved and increased. And the protection of an online wallet account is in the first place here.
Platform for trading bitcoins
When the question arises, how to trade cryptocurrency, the trader most often faces the choice – to engage in its direct purchase/sale or work on the exchange. The first option is the easiest. But it requires a huge investment, and the risks are corresponding. It is worth missing a little time, and the rate may be lower than the one at which bitcoins were purchased. Due to the high volatility, losses will be large. There is another drawback – earnings can be obtained only on the growth rate.
Work on the exchange looks different. Cryptocurrency trading is possible both in an uptrend and in a falling price. Almost all companies provide access to trading floors using the MetaTrader 4 program. The terminal displays the history of rate changes and allows the use of technical analysis.
- Opening an unlimited number of orders (while there is free margin);
- Closing deals in manual and automatic modes (Take Profit, Stop Loss);
- Partial closing, transfer of a stop order following the price movement;
- At the same time, you can trade currency pairs, valuable metals.
Learning to work in MetaTrader is easy. There is a detailed help. To solve difficult situations, you can always turn to fellow traders on a thematic forum — much just beginning to trade on their own.
How to prepare for Bitcoin trading
To trade bitcoins immediately began to make a profit, it is recommended that at least the first month to work on a demo account. This will allow you to practice life skills in opening deals and managing their status. And along the way, compare the real change in the course with news, events on the world market.
With cryptocurrency, it is important to understand whether the project will close soon. According to forecasts, bitcoins will come to this line by 2140, i.e., you can still invest in them. In general, a number of trends will need to be studied:
- Maximum and minimum peaks;
- News field around selected digital coins;
- Calendar of upcoming economic events.
Experienced traders never enter the market close to the “extreme” trend values. If the current rate is close to the maximum, then you cannot buy bitcoin. And vice versa – at the bottom of a downtrend, they do not sell it. It is more profitable to wait for either a breakdown of the maximum/minimum or a price reversal. When the value level is inside the trend, cryptocurrency trading can be carried out without restrictions.
Watching the news often allows you to predict the growth/fall of the value of assets. Useful will be the use of an economic calendar. It indicates the most significant events – the publication of economic indicators, statistics on the population. Although the cryptocurrency is not directly connected with any country, trading a pair with the US dollar forces one to take into account the effect of this currency on BTC.