How do I place a trade on Bitcoin Revolution?
Anthony The internet presents many opportunities for both small and big investors to make a profit. Those opportunities include Bitcoin trading, altcoin trading, and even online forex trading. However, you need to familiarize yourself with the ins and outs of online trading just as you would with any business. Overall, the Bitcoin trade is simple and easy to understand. There are four steps to trade on Bitcoin, and we are going to discuss them in this guide. If you wish to learn how to trade Bitcoin, then read on.
HOW TO TRADE BITCOIN IN FOUR STEPS
STEP 1: OPEN AN ACCOUNT
You will need to open an account with a Bitcoin exchange or a Bitcoin broker. The exchange or broker will connect you with other traders. Their job is therefore to offer a trading platform to Bitcoin traders. Your choice of broker or platform will depend on factors such as trading fees, eligibility of your country of residence, minimum and maximum operating balances of the platform, funding and withdrawal methods available, as well as account verification. Overall, most Bitcoin trading platforms have an easy and simple account opening process.
STEP 2: CHOOSE A TRADING STRATEGY
The following four trading strategies may interest you. You may choose to stick to only one or use a combination of different strategies.
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DAY TRADING BITCOIN
This is where you buy your Bitcoin and sell it within the same day to make a profit. You may buy and sell several times during the day. You buy when you think the price is likely to rise. You then sell later in the day to make a profit, not make a profit or loss, and in some cases, a loss. This strategy is used for short-term movements only.
SWING TRADING BITCOIN
In this method, you trade for periods ranging from two days to two weeks. You buy your Bitcoins with anticipation the price will rise in the next few days, at which point you will sell to make a profit. It is the same with day trading, except that the trade lasts longer than a day. As with any trade, you may turn a profit or loss, depending on how correct your prediction was. Other times, you will just get your money back after you pay the broker fees or platform fees.
SCALPING TRADING BITCOIN
This is where trade takes small profits by selling when there is a small price change after they have bought their Bitcoins. The trader using this strategy has to have a solid exit strategy. That is because if a huge but negative price change occurs, their previous small profits will be wiped out. The strategy requires the trader to place many small trades, have a live-feed of market prices, and possibly a direct-access broker, in order to make timely trades.
AUTOMATED TRADING BITCOIN
With this method, you fund your account and sign up for a trading bot. A trading-bot is a program that uses algorithms to decide when to buy Bitcoins, and then sell Bitcoins at a profit. Even though you are outsourcing the trading to bots, there is no guarantee that you will make a profit. There are hundreds of such bots on various platforms, although we do not recommend that you trust them with your life-savings. However, you may want to try them with the money you are willing to lose.
STEP 3: DEVELOP YOUR TRADING PLAN
You need a trading plan even after you have chosen a trading strategy. A trading plan will help you to make disciplined trades instead of acting out of emotions when stakes are high. That way, you will not let your position stay open for too long or close one too early. In that regard, follow the tips below when creating your trading plan.
- Set your short-term and long-term goals that you need to achieve from Bitcoin trading.
- Come up with a number of the acceptable financial risk for each trade, as well as an overall number for all your Bitcoins.
- Come up with a risk-reward ratio that will justify how much you are willing to risk on each trade.
- Choose the type of Bitcoin markets you will trade, such as a binary options Bitcoin versus Dollar pair.
STEP 4: RESEARCH PRICE TRENDS
This might seem obvious but you need to take your research seriously. While past data will not guarantee the future, it is a good indicator of market conditions at different times. Always trust what the data says over your emotions, and make sure that you don’t use it to trade outside your trading plan. Next is the final step, which is to place your Bitcoin trade.
STEP 5: PLACE A TRADE
The first step to make a trade is to settle on a position, followed by placing a trade on whatever platform you chose. The process of placing trading includes entering the amount you want to stake and defining the close conditions. For example, you need to set a close position when the market moves against you. That allows you to stop the losses before they get out of hand.
You also need to set a limit that allows you to close your position when the markets are still moving in your favor. With stops and limits, you can manage your risks with greater control.