Bitcoin trading has never been more appealing. Thanks to the fact that this cryptocurrency is valued at more than $50,000, many people are open to the idea of diving into the world of trading and earning money.
Of course, the process is not as simple as one might think because there are tons of things that you should remember & consider when it comes to Bitcoin. That is exactly the topic that we wanted to touch on in this article and name a few general aspects that you should keep in mind whenever you think of trading with this cryptocurrency.
Without any further ado, let’s check the details & figure out all there is to know.
Top 4 key things to understand about Bitcoin
1. The High Volatility
One of the most well-known facts about Bitcoin is that it comes with a high volatility rate. That means that its value is subject to many daily changes. Often, it can rise or fall up to a few thousand dollars in just 24 hours. It is an unpredictable currency and most cryptos tend to behave like that.
The high volatility rate is one of the biggest problems that traders face when trading with Bitcoin as it is hard for them to determine when to sell their assets and maximize their profits. However, when you get it right you will end up with a fortune!
2. Trading Sites Can Help You
While the volatility rate is troublesome, the good thing is that some trading sites can help you battle it and thus, make a profit. Here’s how. Reputable platforms utilize advanced AI systems that are able to collect all the data about Bitcoin from the market and use it to analyze its future fluctuations.
The better the system is, the more accurate the results will be. One of the trading platforms that has a very high profitability rate is BitcoinUp. All you have to do to gain access to the services of this trading platform is register. The process is very fast and simple. After you’ve registered, you will have to verify your identity by supplying the site with valid documentation such as ID, driver’s license, or passport.
3. Patience is the Key
One of the biggest challenges that you will experience when trading with Bitcoin is learning how to be patient. Why? Thanks to the volatility rate, Bitcoin’s price has the potential to rise in value quickly. Novice traders will think that the trend will continue and Bitcoin will continue to rise. That is the concept of Fear of Missing Out comes into light and because traders are convinced that the offer is just too good to pass, they invest a lot of money into the cryptocurrency.
But, after they invest, Bitcoin’s price drops in value and they are not able to make any profit off it. That is when the more experienced traders step in and take all of the profits to themselves. Patience is one of the best tools that you can master as it will help you learn how Bitcoin works and thus, increase your chances of making a profit.
4. Halving Events Lead to Price Surges
Finally, halving events take place when a total of 210,000 Bitcoins are mined. That is usually around 4 years. The next halving events are set to take place in 2024, 2028, and 2032. By 2032, it is expected that 99% of all Bitcoins will be mined. But, what’s important to know about them is that they always lead to price surges.
That is because during halving events, it becomes extremely difficult to mine Bitcoins and logically, its price goes up. The most recent halving event took place in 2020 and since it ended, Bitcoin rose to $60,000. Not only that, but experts believe that Bitcoin has the potential to climb even more and possibly reach a record-breaking value of $100,000 by the time 2021 ends.
So, how to day-trade Bitcoin?
This form of trading means that you will open and close a position within just one trading day. Anyone who is looking into making a profit overnight and who wishes to be in the business for the short term will enjoy this step and this way of trading.
How to trend trade Bitcoin?
Trend trading is a process where you’ll follow the current BTC trend. If the trend is bad or poor you will go for a long and a bearish trend means going short. Watch out for the emerging trend and ask for help from others around you if you’re not too sure how trends work.
Remember these top 3 tips when it comes to BTC
1. Always start out small & work your way up
It is better to be safe & cautious than it is to go all out. Never go all out and rather enjoy small-stake trades. It is always better to be safe than sorry.
2. Get yourself a secure wallet
You should hold your digital assets in your digital wallet since it is the best & most secure way in the long run. There are hot wallets & cold wallets for you to choose from. Hot wallets are connected to the internet, while cold wallets are used for storing your assets.
3. Be smart with your strategy
There are four categories for you to choose from, as well as four different strategies to try out:
Scalpers – those who make loads of trades but for a smaller profit amount
Day traders – they rule the market for 24 hours
Swing trading – is done through a deep analysis
Passive trader – takes time & plays it slow for long-term profit
Ready for your ultimate BTC experience?
Are you ready to begin trading and you’re eager to start with your BTC use and trades? This article will help newbies & experts get a hang of it. Let us know where you stand at the moment when it comes to Bitcoin trading.