The internet has made many things available at the touch of a finger. Amongst these things are trading opportunities for profit generation. Trading itself, can be done with either flat currency or cryptocurrency. When we talk about cryptocurrency the first name that pops in our mind is bitcoins and bitcoin trading is one of the most famous forms of trading. This is because bitcoin trading is simple and convenient for both, beginners and experts. In this article will provide you with a step-by-step guide on how to make profits through bitcoin trading.
- OPENING AN ACCOUNT
Before opening an account, you need to find a platform that will support your trading needs. This platform will act as an exchange or you can hire a broker who can connect you to the right traders to facilitate your profit-making process. For this reason, we would recommend you to click here and explore the Bitcoin Profit website. Once you have finalized the platform through which you’ll trade, you need to create an account. The bitcoin profit trading app offers free trading accounts which will assist you in your trading. With Bitcoin Profit, you will get high accuracy, backed by the platform’s very accurate algorithm. Most exchanges and brokers, like bitcoin profit, will allow you to set up your trading account for free and the account opening process usually tends to be very simple and doesn’t require lengthy processing hours.
If you’re a newbie, you can opt for a demo account. This demo account will allow you to practice trading in a simulated environment before you enter the real market. This way you will have some prior experience and can opt for more risk-averse strategies.
- CHOOSING THE RIGHT TRADING STRATEGY
There are a number of different trading strategies and your use of them is not just restricted to one. You can mould these strategies and use a combination of different strategies to better meat your goals. We will discuss three strategies below that you can apply in your trading activity.
First and foremost, the most common strategy is day trading. This allows users to purchase and sell bitcoins within the same day. This buying and selling can occur multiple times, depending on how many times the prices fluctuate. This strategy is ideal for short-term profits. You buy your bitcoin when the prices are low and resell them the instant the price goes. However, in instances when the prices don’t go up, users end up making a loss.
Swing trading of bitcoin is another strategy that you can opt for. In this strategy, the time span of trading is spread out over 2 days to 2 weeks. The idea behind swing trading is similar to day trading, except that there is no obligation to resell your bitcoins in the same day.
Last but not the least, we will look into automated trading. This type of trading requires users to set up their account and a bot then takes over and carries out the trading activities. It monitors price fluctuations and sells and buys bitcoins accordingly. Even though bots are extremely vigilant, there is no guarantee of a profit being made.
- DEVELOPING A TRADING PLAN
Devising the right trading plan requires you to be rational and practical. This includes figuring out your short-term and long-term financial goals that you want to achieve through trading, decide the amount of risk you’re willing to take, a risk-reward ratio and figuring out the type of markets you want to trade in.
- RESEARCHING PRICE TRENDS AND EXECUTING YOUR TRADE.
This is one of the most essential tactics. Even though it sounds obvious, researching and analyzing prevailing and past trends of bitcoin prices. This will give you a better idea of when you should make short-term or long-term investments. Finally, execution of your trade requires you to act immediately and close your position in case the market starts moving against you and keep it open while the market is still in your favor.
CONCLUSION
The bitcoin market is highly volatile and the likelihood of making profits is the same as going into a loss. By using the right tactics and stay vigilant towards price fluctuations, you can make things work in your favor and meet your financial goals. We hope this article was informative and helped in creating a map about how you should proceed with bitcoin trading.