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HomeLifestyleTradingHow To Trade Bitcoin in 5 Simple Steps - A Beginner's Guide.

How To Trade Bitcoin in 5 Simple Steps – A Beginner’s Guide.

LONDON - England - If anyone wants to trade Bitcoin or any other cryptocurrency, there is a wealth of knowledge one needs to learn. We outline some of the strategies and techniques of trading crypto for beginners.

Today, to trade Bitcoin is not as hard or inaccessible as it was in the past. Where are the best places to buy and sell Bitcoin? What is Bitcoin? Why Bitcoin is the future of crypto? Where will the price of Bitcoin go in the year 2022? How you can profit from Bitcoin rises and falls by trading.

What is Bitcoin?

bitcoin-2028512_1280Bitcoin is a digital currency. But instead of coins, it is the unique cybercurrency that is mined by millions of computers that run complex algorithms.

The algorithms are then run by miners, or individuals or businesses that run special programs to solve increasingly more complex mathematical problems. The more complicated the maths is, the higher the Bitcoin reward is.

The computers that work to solve these problems are all over the world, and there are many that run special programs, so it is unlikely that one country will dominate Bitcoin’s mining.

Bitcoin is a decentralized digital currency that enables peer-to-peer online payments without a central authority. The payments are powered by a peer-to-peer network, and are accepted as payment for goods and services.

Bitcoin uses a public ledger system in which Bitcoin ‘miners’ use complex algorithms to solve mathematical problems, and thereby receive newly created Bitcoin as a reward.

How Much is Bitcoin Currently Worth?

Bitcoin is now worth $43,000, and has dropped from its all-time high of $67,000 in 2021. Speculators are talking of the price reaching over $120,000 by the end of 2022, however as always this might or might not happen. As the price of Bitcoin is relatively low now, maybe this is a good time to acquire some Bitcoin, especially before it rises to unattainable levels.

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What Is Bitcoin Trading?

Crypto trading is not for the faint-hearted simply because of the volatility involved, however with a little education and practice, you can make some serious profits. As much as the price can spike up, it can suddenly spike down and, depending on your position, cause you to lose money. If you are leveraged at 500:1 you can make vast profits, however you have to always safeguard a prospective losing position with a stop loss.

In order to buy or sell Bitcoin, you need a broker. They are the middlemen between you and your Bitcoin. The brokers allow you to enter in your payment information and to set up an order to buy or sell Bitcoin.

5 Easy Steps to Bitcoin Trading Success

  1. First set up an account with a trusted broker like Bitcoin Prime.
  2. Fill in the necessary information to start trading.
  3. Fund your account depending on the deposit amounts required to trade.
  4. Learn and explore the trading platform. The more you know, the better you will trade.
  5. Always trade with a strategy and never with ‘scared money’. Always only trade with approximately 1-10% of your deposit.

Crypto Trading Strategies

stock-market-6287711_640You don’t just trade any blip on the charts, you have to have patience, discipline and most importantly a strategy. Consistent traders who win, take out the emotion of trading and only utilise technique. One must also remember that the market is fluid, it can change at any moment due to news or other correlated market movements.

Educate yourself on price action, as well as Japanese candlesticks, resistance and support levels. You must be able to see if a chart is in an upward trend, downward trend or going sideways, utilising long-term charts then moving to shorter timeframes.

Over time, indicators can be useful, and you must choose the ones that work for you specifically. Overloading your chart with indicators is counterproductive, all you need is a few, maybe a moving average, RSI (Relative Strength Index) or MACD (Moving average convergence divergence). Always pay attention to the volume data as well as rising volume usually signals a big move forthcoming.

First try out your strategies on a practice account before putting real money down, and once you are making consistent profits, think about putting real money trades down. What you will generally find is that real money trades psychologically are way more potent than trading on a practice account. Timing is definitely key, and this is where patience comes in to the equation. Rushing in to a trade without a strategy or plan is tantamount to gambling.

Who Should Consider Bitcoin Investing?

Although Bitcoin is touted as the cryptocurrency of the future and should be considered alongside other cryptocurrencies like Ethereum, Bitcoin is used more and more for day to day purchases. The launch of Amazon gift cards accepted by Bitcoin could prove to be a watershed moment in its history. You can now buy crypto like Bitcoin on PayPal making it even more accessible to everyone.

The future of cryptocurrency is undeniably bright. That said, Bitcoin and other Cryptocurrencies are the future and for better or worse, it is here to stay. Even as most governments struggle to regulate them, this is one of the only true, free market cryptocurrencies on the planet, which makes it incredibly attractive to certain people.

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