Bitcoin Trader – Introduction
Do you want to trade Bitcoin (BTC) in the cryptocurrency market and make money while trading? In the first place, you should know that there isn’t any magic pill guiding you to the main target. However, if you have proper knowledge of trading, it’s quite possible to become a BTC trader and achieve good profit. This article will assist you to set off on this adventure.
Now, you’ll learn essential tips that will help you to become a good trader. Let’s get it started!
Trader “profession”
First of all, you don’t need specific training or attending college (even because there isn’t any trader college) to be a BTC / other financial assets trader. However, If you desire to be successful in the field of investment, you should study economics concepts, as well as learn trading strategies. If you want to become and work as a trader, you should know that there are some financial trading courses available on different platforms.
Speaking of financial feedback, if the trader works as self-employed, he won’t be on a fixed salary. After all, his profits depend on his type of investment, trader profile and financial market fluctuations. However, it’s possible to be profitable, but it’s crucial to be an experienced trader.
Acting as a Bitcoin trader
It’s worth following the next tips, before investing for the first time in BTC.
1. Learn about cryptocurrencies, not only Bitcoin
BTC is the most purchased, held and traded cryptocurrency on the market, but there are other types of crypto. For instance, XRP, Ethereum, Litecoin, Tether and so on. Crypto price fluctuation is often in this universe, where the cost of one digital currency can affect the price of the other one.
For that reason, you must develop a crypto macro perspective to become a good trader. This will help you comprehend price oscillation and have a better understanding of BTC, once this will allow you to know its pros and cons in relation to other digital currencies.
2. Own a trading account in a Exchange
If you’d like to trade BTC securely, you have to create an account in a crypto Exchange. It is a broker on which you can buy and sell cryptocurrency.
These brokers work every day, unlike traditional brokerages. These last ones have specific transaction processing periods. This provides you more flexibility on trading.
Here, there are some examples of common companies for those who want to become a BTC trader:
- NovaDAX;
- BitcoinTrade;
- Foxbit;
- BitCambio;
- Nox Bitcoin;
- Walltime;
- Profitfy;
- Coinext.
3. Studying crypto market
Cryptocurrency market is extremely volatile, which makes the digital currency tax go up and down easily. It occurs due to external factors e.g.: new tech trends, government positions, news and so on.
You must deeply study the crypto market to be able to keep up with its changes. Thus, you will make good moves avoiding you lose money.
4. Types of purchase order
Purchase order is the way you choose to acquire a certain asset, in this case, BTC. There are two fundamental execution options: at the market and at the limit.
Here, is the difference between both:
- Place the order “at the market”: Market orders are transactions meant to execute as quickly as possible at the current market price.
- Place the order “at the limit: Limit orders set the maximum or minimum price at which you are willing to buy or sell.
5. Types of trading strategies
Trade negotiations have four different strategies. That’s why, it’s important to know each one of them to choose the best option for you.
Now, you’ll see the different types of trading:
- Day trade: The act of buying and selling an asset within the same day or even multiple times over the course of a day;
- Swing trade: It involves taking trades that last a couple of days up to several weeks;
- Position trade: It buys an investment for the long term (until 12 months time frame) in the expectation that it will appreciate in value;
- Scalping trade: It’s a strategy that involves very short-term transactions (a few minutes) and it’s indicated for experienced traders.
6. Stay Connected
Previously mentioned, external factors influence BTC prices. Then, it’s crucial to keep up to date on world news. But to do this, follow up the news and social media, such as: Reddit and Twitter.
It’s worth it to follow the developers of BTC and of the other cryptos on social media.
7. Chart analysis
Chart analysis or Technical analysis are a visual representation of the price fluctuations of an asset. Once you learn to read them, you’ll be able to see patterns of behavior in the market.
This assists you in creating strategies to organize your trades and make better investments. Consequently, you can make more money by investing in low-risk investments.
8. Start trading small amounts of money
To be a great BTC trader it’s really important to have knowledge of investing, as well as being an experienced trader. So, start trading small amounts of money and test the market. Dive into the cryptocurrencies world and see what’s the best shot for your profile.
In the next move, try to analyze your mistakes so that you avoid them again. Also, study your success points to understand what made you achieve a proper result. You can increase your trade amounts.
Besides, check other cryptocurrency articles on our blog:
Bitcoin Trader – Conclusion
Being a BTC trader may guarantee you proper results, but you won’t make easy money, as you notice before.
You’lI have to study a lot about cryptocurrencies, investments and financial analysis too. It’s a process that requires dedication, as well as resilience and consistency.
Whether you’re a trader (one who works with the price of assets), or an investor (one who works with the value of assets), learn more on ECC Project blog about cryptocurrency universe!
