Login to your account

Username *
Password *
Remember Me

Create an account

Fields marked with an asterisk (*) are required.
Name *
Username *
Password *
Verify password *
Email *
Verify email *
Captcha *
Reload Captcha

Handy tips for Bitcoin trading

Written by  Jul 08, 2020

Value increases, low fees, speedy transactions – there are many more factors that have led to the increase in popularity of bitcoin trading.

A lot of traders have managed to capitalise on this boom in bitcoin trading.

Bitcoin trading offers great profit earning potential. But if you are trying it for the first time, you will see that the losses can also be huge, if you are not too careful. Here are a few tips that can make your journey smoother:

Understand the basics of technical analysis

When compared to other currencies and asset classes, Bitcoin is an outlier with no bank or body governing it. Largely speculative, it hardly follows any principles of the traditional financial theory. So, if you want to make money through bitcoin trading you will have to get fluent with technical analysis. You will have to understand how to analyse pricing charts, apply indicators, and read price action.

Trade as Per Schedule

Bitcoin trading is something that has to be done at a sustainable pace. You can’t expect great results by putting in more number of hours. Find out the optimal times to trade and make sure you focus only on these periods. Maintain a convenient schedule so that you will be able to trade effectively.

Advertisement

Look for News Items

Bitcoin market is very different from the stock market. Typical news items may not have a predictable impact on this market. Yet if these news items are unexpected they may influence the price of the Bitcoin. So make sure you keep an eye on the live news feed at all times.

bitcoin techWhat is Bitcoin?

Always use Stop Losses

There is a high degree of volatility in the Bitcoin market. The valuations fluctuate regularly from 5 to 10 percent. If you have an appetite for risk, this might seem really attractive to you. But make sure you always use stop losses so that you minimise chances of losing money.

Advertisement

Use Prudent Leverage

Using leverage is quite tricky when it comes to bitcoin trading. It might boost your gains; but it will also magnify your losses. While too much leverage can lead to bad money management, too little leverage would mean trades not performing up to their maximum capabilities. As a Bitcoin trader, it is very important for you to do the balancing act when it comes to managing leverage effectively.

There are many platforms that you can use for Bitcoin trading. They might provide you all the tools that you may need to manage your trading effectively. Nevertheless, you will have to spend time doing your research so that you can gain the knowledge and experience that is required for Bitcoin trading.

Ask around and go through reviews if you want the answer to your questions. Make sure you understand your risks and rewards before getting into any trade. Focus on position sizing as well as stop loss location. Know your risk appetite and determine your goals before starting out on bitcoin trading.

If you are new to the Cryptocurrency world and would like to open an account we recommend Cex.io.

Do you find this article useful? Comment below or follow us on Facebook or Twitter.

Peter Flynn

Senior Editor and self confessed Crypto addict, bringing a variety of Crypto tech news, help and advice in the UK. I have worked in various fields throughout my career such as a Systems Administrator, Cyber Security Consultant and other technical related roles, these days I concentrate on Cryptocurrency journalism and technical writing.

Leave a comment

Make sure you enter all the required information, indicated by an asterisk (*). HTML code is not allowed.

Follow Us

Advertisement
sme logo

Help and Advice

May 06, 2020

Beginners Guide To Cryptocurrency

Cryptocurrency has been around since 2009 and has grown in popularity ever since. But if you’re a beginner in the cryp...

Feb 10, 2020

Tips To Trade The Volatile Crypto Market

The expected economic impact of the coronavirus has resulted in crashing stock markets across all the globe. ...

May 08, 2020

What is Cryptojacking?

'Cryptojacking' is a term used to describe the action of secretly using a computer to mine cryptocurrency for profit. ...

May 26, 2020

Ways to invest in the cryptocurrency market

Bitcoins huge price movement back in 2017 attracted many investors who wanted to profit from the emergence of this new d...

May 11, 2020

What is an ICO?

An ICO stands for Initial Coin Offering, it is a method for teams to raise funds for a project in the cryptocurrency spa...

Jun 24, 2020

The difference between Bitcoin, Altcoins and Tokens

The cryptocurrency market is well established, but then there are new people discovering the benefits of crypto trading ...

Feb 20, 2020

How VPN Services Protect Your Data

Wherever you are, a virtual private network is still one of the best ways to secure your crypto data on the internet. ...

Jan 31, 2020

Tips on keep your mobile banking apps secure

If you are buying and selling cryptocurrency and need to fund your investments or withdraw your money, it always pays to...

Jul 01, 2020

Important things to know about cryptocurrency

Are you ready to invest in cryptocurrency? Then there are things you should know about the industry. ...

Jan 13, 2020

Be wary of shoulder surfing

When you are trading in the office this is rarely a problem as you know your colleagues and you are in an enclosed envir...

May 11, 2020

How to protect your Gmail account

Technology is constantly changing and at a pace which is hard to keep up with, but 'safety first' always applies. ...

Jul 08, 2020

Handy tips for Bitcoin trading

Value increases, low fees, speedy transactions – there are many more factors that have led to the increase in populari...

Apr 06, 2020

Every new crypto computer needs protecting

All those crypto files you’ve saved through the years that you can’t remember what they are? Goodbye, it wasn’t me...

Feb 21, 2020

Proton Mail: The Best Secure email Provider there is

Proton Mail offers a comprehensive level of security, while also locating its data centres ‘underneath 1000 meters of ...

Feb 07, 2020

Is 2 Factor Authentication Enough?

The technology and security controls in every example is different and therefore, the time, effort, and cost required to...

Jan 08, 2020

What you need to know about filing Crypto taxes in the UK

For some time, Governments across the world have been cracking down on crypto taxes.