Bitcoin was the first ever cryptocurrency created in 2009 and has increased in price and demand over the years. More people today are beginning to take their finances seriously, and this includes learning more about investment options and bitcoin seems like a viable option. Earlier in 2020, it was reported that about 55% of adults in the United States invested in the stock market but the percentage is quite low for bitcoin investors.
As much as more people would like to trade bitcoin, the process seems rather daunting for some but it is actually straightforward as long as you can get a hang of it.
Learn What Moves the Price
Bitcoin is volatile and if you want to make the most of your trading, you must understand the factors that move the price up and down. This will help you know best entry and exit stages, so you can trade effectively to yield results.
These factors include the limited bitcoin supply that’s estimated to finish by 2140, which could cause an increase in price as the demand increases. It could also be due to bad press, security breaches, regulation changes, and some other key events that may alter the demand.
Choose a Trading Style and Strategy
There are several trading styles and strategies that you can choose from and this includes day trading, hedge trading, swing trading, scalping trading, and bitcoin hedging. Have a plan and do your research to determine which of the strategies would work for you. If you have a solid investment plan, it’ll be easier to choose the best suited strategy for you.
Part of creating a plan is determining how long you intend to trade for, whether it is long or short term. If it’s long term, you’d expect the bitcoin price to rise, which is quite tricky, as nothing is guaranteed except if you follow the track record. On the other hand, if you’re short term, you’d be expecting the price to fall. Either way, your focus would be on making the most of your trade.
Choose your Trading Platform
The software or app you opt for plays a huge role in the success of your bitcoin trading. There are several of them available today, including sites like https://bitcoinrevolution.org that help make the process easier. Key things to look out for when choosing a platform includes security, payment options, transparency, and good track record.
The marketing strategy in the crypto industry has also improved over the years. This means you have a higher tendency of seeing more reputable crypto platforms and how they can benefit you while you do your research.
Monitor Your trade
Once you open your trade, keep monitoring it to ensure you’re on track. One of the best ways to monitor is by following bitcoin trends, which some trading apps already make available for easy access. Know the latest bitcoin news to help you make the right decision on the best time to trade. By monitoring your trade, you’ll be able to tell if it’s moving as it should or if you have to change your strategy.
If you’re a beginner, it’s often advised that you start small and gradually move up the ladder as you improve your knowledge of how bitcoin trading works.