If you are considering Bitcoin trading, then you will soon learn that it is an extremely profitable venture for both the beginners and the professionals alike.
The fact that the Bitcoin market is still new and highly fragmented with large spreads means margin and arbitrage trading is readily available. So many potential traders can engage in Bitcoin trading and make money. Below we explore how to make money from Bitcoin trading by providing some helpful tips.
If you acquire Bitcoins and sell them at a higher price, you will end up making a profit. On the other hand, if prices go down, then you will be in the unfortunate position of choosing either to sell your coins at a loss or wait a little longer with the hope that the price will go back up with the potential risk of higher losses if Bitcoin prices continue to drop.
Are you a long-term trader or short-term trader?
In the market, there are two main types of Bitcoin traders classified as long-term and short-term traders. The classification is based on how long each of these traders wishes to continue holding onto a position of the trade. To trade you can use websites like Bitfinex and Bittrex – They are exchange to trade.
Note that the long-term traders carefully study price trends for longer periods. This helps them determine whether they can buy and continue holding onto their Bitcoins over longer periods of time in the hope that they will make a profit by selling at a higher than the initial entry point.
Short-term traders, on the other hand, perform an analysis of the intraday Bitcoin price behavior and aim to benefit from the price swings. The short-term traders tend to thrive in the volatility of the market, a factor that points to the characteristic of the crypto currency. In the early stages, the Bitcoin price swings were so big due to the little event in the crypto currency space, which had a major effect on Bitcoin price. As the adoption of the crypto currency grows and becomes even more stable, the volatile nature of the price has considerably reduced and experts agree that trading the cryptocurrency today is better compared to the earlier years.
As mentioned earlier, trading Bitcoin is an extremely profitable venture if you do it right. The value of Bitcoin rises and falls in a dramatic way throughout any trading day, meaning the phenomenon can be quite risky if you make a misjudgment.
Join A Bitcoin Multiplier
There are things known as “Bitcoin Multipliers” which are essentially network marketing schemes built around Bitcoin and things like mining pools.
A few examples of these which are big in the industry are USI Tech, BitConnect and EthConnect. The biggest one at the moment is BitConnect however USI Tech is catching it up and will be launching their own ICO soon.
Read a full USI Tech review here: http://nobsimreviews.com/usi-tech-scam
Determine Your Trading Strategy
You should determine whether you will be a swing trader, a day trader or long-haul trader. A good strategy involves looking for trades with the potential of making at least 10% – 25%. If you choose to trade for anything less than this, the spread and the fees could potentially eat away your profits. With the right knowledge, you can have good trade setups as well as the best opportunities for trade.
Important Points To Remember
i. Avoid the temptation of investing your entire life savings or any other moneys that could possibly change your life in a drastic way. This rule particularly applies in instances of high-level uncertainty within the market.
ii. Understanding the Bitcoin market requires lots of time considering it is a continuous learning process. Carry out lots of research and keep yourself updated on the current trends in the market.
iii. Split up your capital into smaller lots allocated for multiple positions. Also, make sure the price levels are different. This way, you will be able to spread out the risks.
iv. In order to maximize your level of profit, it is advisable that you make good use of the available technology.
v. Just like winning, losing is a vital component of trading. Even so, cumulative gains count the most.
If you have always wondered how to make money from Bitcoin trading, then you might want to consider applying the tips provided above.
Do not fall for the trading scams that involve trading robots.
Remember, anything that promises to make rich on autopilot is simply a scam.
However, if you apply the right strategy in Bitcoin trading, you can make tons of cash. Like any other type of trading, you risk losing your capital.
Therefore, new traders should begin trading with smaller amounts. Beginners should also take their time to learn the vital Bitcoin trading strategies and have a good grasp of the market signals.