How to trade Bitcoin?
Bitcoin exchange rate is the highest recorded for any currency. Bitcoin quote is three times the quote for an ounce of gold making it one of the most desirable trading asset. For the last six years, stockbrokers and forex traders have traded and invested in bitcoin. The widely acceptance worldwide of bitcoin as payment method skyrocketed its exchange rate. The rapidly bitcoin revalorization generates staggering profits, for this reason, everybody wants to learn how to trade bitcoin. The recorded bitcoin dividend potential generation has overpass all world currencies and even the top NASDAQ and Down Jones companies.
What is Bitcoin?
Bitcoin is a cryptocurrency, which means, it is a digital or virtual currency. Private corporations or individuals without the control of any Central Bank or local government create the cryptocurrencies. Bitcoin is similar to any other metallic or bank note currency; you can buy hundreds of goods or services and paying with bitcoin where it is accepted, or trade bitcoin in the forex market similar to any major currency.
How to trade Bitcoin ?
1. Learn the necessary forex trading skill, bitcoin is a currency, and it follows the same economic rules of the forex market. Therefore, you need to understand the underlying trading concept.
2. Familiarize yourself with the Forex bitcoin technical and fundamental analyses. To maximize trading profits, you need to follow the technical analyses indication, as you would do with any trading asset. Consequently, you must understand indicators and price charts patterns. Keep in mind that you are required to anticipate the bitcoin price moving direction to get profits from your bitcoin trading.
3. Choose the bitcoin pair you are interested in. Currently, bitcoin quote is offered in the principal or major world currencies, as any other exchange rate, you can choose the Bitcoin/USD or Bitcoin/GBP or Bitcoin/AUD, etc.
4. Choose your forex market you can trade bitcoin in the principal global markets but limiting your trade to the market that best adapt to your trading schedule and preferences facilitates Bitcoin trading and make it easier for you to do the technical and fundamental analyses.
5. Set your trading capital for Bitcoin trading, you must set the maximum amount of money you are comfortable investing to trade bitcoin. It will be your bitcoin initial trading capital, be sure you will not need that money for your expected trading time.
6. Select your Bitcoin broker, before you pay any fee or deposit any money you have to review that your chosen broker trade bitcoin in your preset amount and at the forex market, which you want to trade.
The Best broker on CryptoCyrrency market is IQ Option
7. Open a bitcoin trading practice account or practice with fake money, taking advantages of the free bitcoin practice trading accounts is the best way to evaluate how ready you are to start trading with real money. The bitcoin brokers offer the free bitcoin practice trading account in which you can see the bitcoin quote in real time and evaluate how accurate you trading strategy and criteria are.
8. Create a bitcoin trading strategy, successful bitcoin traders create and follow a trading strategy with the maximum amount of trade per day or week, the market or bitcoin price condition to buy or sell, and the indicators and price chart they will use for technical analysis.
9. Create a money management plan, after a good strategy an excellent money management plan is needed to be a successful trader, be sure you established how you would reinvest your bitcoin trading profits.
10. Set your bitcoin trading expectation, you need to determine for how long you will trade bitcoin and how much money you want to get from it. Please remember the bitcoin profits should be reinvested to maximize your trading dividends.
11. Open bitcoin wallet; be sure you write down the number in a safe place. Bitcoins are transfer from one wallet to other in an encrypted way. If you lose your wallet’s ID number, you lose all your bitcoins.
12. Start trading bitcoin, do the previous steps, and be sure you have done a technical and fundamental analyses for the day and before each bitcoin trading, furthermore, you have review your bitcoin broker, and you are sure it will suit your trading needs.
13. Open a real bitcoin trading account and funded it
14. Record each bitcoin trading and review your bitcoin wallet to be sure you are receiving the correct amount.
15. Review you win rate and bitcoin trading success
Understanding how to trade bitcoin ?
· Bitcoin quote or Bitcoin exchange rate is the market value for that moment of one bitcoin.
· Bitcoin currency pair is the currency in which the Bitcoin value will be quoted, e.g., Bitcoin/USD, Bitcoin/GBP, etc. the price of one bitcoin will be reported in the currency below it.
· Bitcoin price charts are the bitcoin recorded price history graphically represented.
· Bitcoin price patterns are recorded price history which market behavior or price moving direction are repeated each time they are present. Therefore, traders can anticipate the price moving direction base on the previously recorded price pattern.
· Bitcoin indicators are financial tools, which analyses the market conditions and identify a price momentum, indicating the best market decision for that moment such as selling the bitcoin or buying it. There are various forex market indicators you need to familiarize with them and select the best for your bitcoin trading strategy.
· Bitcoin wallet is similar to a bank account in which you put you bitcoin or save them to use latter. The bitcoin wallet is the only way for you to access your bitcoins. The bitcoins are transferred from one digital wallet to other in an encrypted form. If you lose your wallet information, you lose your bitcoins.
· Market order is a direct instruction to your bitcoin broker to buy or sell you selected bitcoin at the current market price.
· Limit order is a direct instruction to your bitcoin broker to buy or sell your bitcoin only at a preset price. You can instruct your broker to sell any amount of your bitcoins if it reached a particular price, on the contrary, buy it at a specific price.
· Stop orders are similar than the limit order in which you preset the asking/bidding price to buy or sell your bitcoin. However, the stop order allows your bitcoin broker to buy bitcoin above the current market price if you are sure the bitcoin price will increase beyond it. On the other hand, sell your Bitcoins at a lower price than the current quote, if you think the bitcoin price will drop further, to limit or cut your losses.
In a nutshell: how to trade bitcoin is similar to any other forex trading, in which you are required to do a technical and fundamental analyses to anticipate the next bitcoin’s price moving direction and get profits from it. Bitcoin trading follows the same market rules for any asset, and it behave as any major currency with price fluctuations. Currently, Bitcoin is one of the most desirable asset for traders and investors.