As a trader, it's your job to understand how the market works and take advantage of opportunities when they arise. Sometimes, they come in the form of entirely new markets. At other times, opportunities come in the shape of benefits within already established currencies.
Whether you've been interested in cryptocurrencies for a few days, a few weeks or a few years, this guide will help you get started on the right track. A lot of people are somewhat reluctant to trade because they just don't understand how the entire system works. A lot of people have a hard enough time reading about cryptocurrency. There's a lot of risk in it, but that's where the guide comes in.
The first time most people read about blockchain technology, they get downright confused. Even for those people who go to conferences, cryptocurrency usually makes no sense at all. In fact, for most people, the meetings tend to be confusing, more so than the guides like this you can read online. It's because it's a complicated system when you first get involved. Having a simple guide that starts from the beginning is the most comfortable and most helpful way to understand how cryptocurrency operates.
If you take the time, and study there are a lot of opportunities to be had within the cryptocurrency realm. It can take some time to start trading efficiently, but for the most part, all you'll need is this guide, and a willingness to do what it's says while learning. Not to mention there won't always be significant risks, but it's a lot easier with a quality guide to lead the way, allowing you to learn and glean helpful tips along the way.
Thefirst and one of the most crucial things to know is that cryptocurrencies like Bitcoin are incredibly volatile. This is also why they are so opportunistic - with the potential of significant risks comes the potential for high opportunity. And more importantly, massive returns on an unbelievable scale. The same can be said about the losses as well; Bitcoin can go up and down thousands of dollars in a single day.
But in this guide, you’ll learn the ropes of cryptocurrency markets and how to trade on them. If you’re already a crypto veteran, then you can show this to your newbie investors and have them read it to save you some time. You can read through it, to make sure it’s congruent with what you think a newbie should learn.
The Beginning of Bitcoin
Cryptocurrency started with Bitcoin, and it is considered to be the godfather of all other cryptocurrencies. Mainly, it's virtual currency that you buy with real money. Also, most cryptocurrency is operated on its own platform through the use of blockchain technology. The teams behind the different cryptocurrencies are not usually just creating a new currency, but an entirely new platform that you can use the money on. To fully understand how this works, you can look at other software that you've probably already used to get an idea.
· Windows: Windows is a commonly used software platform for personal computers. Windows is simple, you pay with US dollars and apply local Fiat Currency on your computer. If you buy a computer that has Windows on it already, then there is a license fee included with the new computer. On Windows, the database is stored on your local computer.
· Dropbox: Like Windows, you pay US dollars and buy a subscription. Except with Dropbox, there is a choice – you can get one month or pay for a year or other available plans on the platform. When using Dropbox, you store the files on the server run by Dropbox.
· FedWire: You pay a transaction fee to Fedwire, and you send the Fiat currency yourself. For Fedwire, the databases are stored on the Fedwire server.
However, when it comes to Cryptocurrencies – they are designed to replace the United States dollar or whatever local currency you use. You then use them to purchase these software services. The databases used by cryptocurrencies give you unlimited access to the blockchain technology as well.
There will be more on blockchain technology in a bit. And let's make it clear, Bitcoin is different than United States dollars in that cryptocurrencies are typically run on a decentralized network and are designed to improve the software systems of other existing networks. They are their own currency types, unlike PayPal, FedWire or Western Union – where you just send actual fiat from one place to another.
Cryptocurrency allows more freedom than other financial institutions like PayPal, where there are severe limitations on what can and can't be done. For example, you can't work with many different countries when using PayPal, they are considered high risk and off limits.
On the other hand, when using cryptocurrencies like Bitcoin, you can make substantial financial transactions that are available across the world by many different people and financial institutions around the globe. Other currencies tend to have problems that we can talk about later in this guide. And just to clear it up, many organizations consider cryptocurrencies money.
Several methods can be used for trading Bitcoin. One way to trade the currency without owning any coins is through the volatility of the Bitcoin – it works through companies like Plus500 and Avatrade as well as Fortrade. It's a risky way of trading, and it's wise to start with a demo if you plan on selling this way. Once you feel comfortable, then you can trade out of demo mode. You'll then be able to generate consistent profits.
To truly make profits on trading you'll also need to learn to understand the market and how to gauge it. Even this guide isn't enough to help you achieve fail-safe trading. You'll need to experiment on your own as well. And you'll need to do it with your own trades and continually learn everything you can, before you get the success you’re looking for.
Bitcoin Trading Introduction
First, to be clear – there's a massive learning curve when starting your work with cryptocurrency. Newcomers will have to go through about 3-4 months of studying to get up to current speed with Bitcoin and what's happening in the industry. There's a lot of basics to learn and adapt your way of thinking too. Like any other new, revolutionary platform, cryptocurrency doesn't coincide with established or traditional ways of doing things. Understandably, not many people have the time or the initiative to learn everything they need to about Bitcoin.
One positive note, however, is that Bitcoin is known to be incredibly profitable. At first glance, it may seem hard and volatile, which is true, but there are always two sides to every coin. Just this year Bitcoin has gone up in price more than ten-fold. It started off as a mostly free currency in 2009, and in the last eight years has created millionaires all over the world. Most of the people were risk takers, ready to get in on the cash crop. Even though there is a learning curve, thousands of everyday people like you have turned their lives around with Bitcoin. This is truer than ever in a market where many other assets are struggling to be profitable.
There are two different types of people: the people who already own Bitcoin and the people that don't. This guide is for people who don't own Bitcoin but are interested in it. And it will teach you how to buy and save Bitcoin without needing a thorough and in-depth understanding of blockchain technology, mining or segregated witnesses.
Because of the inclusion of Bitcoin as a real-life currency by many different financial institutions and exchanges, anyone can read a price chart to find out costs and trade Bitcoin. It's no longer necessary to have many specialized apps to start as cryptocurrency is much more accessible now.
But Why Would You Want Trade Bitcoin Over Other Instruments?
· Global Availability
One of the most significant benefits of Bitcoin is its availability on a worldwide scale. It's being distributed all over the globe through the use of different electronic exchanges everywhere. Also, the trading market is never closed. That means your investment never stops working. Unlike other trading platforms like Forex, Bitcoin never takes days or weekends off. It's one of the purest forms of currency ever created. It means that traders everywhere can buy, sell or exchange any time of day that is most convenient for them. It doesn't matter if it's during or outside of regular waking business hours or holidays.
· The Volatility of Bitcoin is a Dream Come True
The currency is known for being incredibly volatile. A move of 3% in one day is not uncommon or exceptional in any way for Bitcoin. Also, during the exceptionally volatile periods, price often moves on the scale of double digits. When done correctly, these swings can be some of the most profitable in history over short periods of time. And the more the price continues to move, the more substantial the sum of profit that can be made is as well as any occurring drops.
· It Can Be Leveraged by Individual Traders
We can't forget the leverage that can be used with Bitcoin either. It gives traders the ability to generate vast amounts of monetary returns that far exceed their initial investment of a proportionate size. Basically, with the use of different platforms, you can get a return of $2,500 for every $200 invested or more. Most of the platforms used to make that kind of money take severe amounts of functionality to leverage correctly.
When mixed with the extreme volatility of Bitcoin, the amount of leverage can be powerful enough to open doors for individual traders. There is usually a very distinct form of professional traders who understand how to capitalize on trading like this. It's a very hands-on, day-to-day-based business you have to keep up with. Usually, individual traders have a limited amount of free time and capital to keep in an account that is used for trading. When compared to other instruments and assets, leveraging Bitcoin is one of the most potent ways to get some serious bang for your buck in a short time frame.
· Bitcoin Rarely Trades in Lockstep with Other Mediums
Bitcoin is also incredibly unique. There's no other store of value that is like it and it's one of the world's first widely traded digital currencies. It's also a programmable currency that has a predictable level of inflation. It's because of this that Bitcoin prices typically move entirely independent of any other currencies or trading exchanges like Forex, stocks or bonds. It's a complete global network and is almost entirely safe from the risks that different currencies face. It’s unique, independent nature, and helps to reduce the number of external sources from affecting its traders.
New developments in Bitcoin's space now and frequently do impact price. There are not standard moves in the market as events are usually relatively rare. Some examples include the Cyprus bank bail-in, regulatory changes of the legal side of Bitcoin and increasing Chinese control of capital overseas. These are some major external factors that usually have some severe effects on other currencies and markets, but not often with Bitcoin. It's usually easier to trade Bitcoin based on prices per specific action.
For anyone who is just starting with Bitcoin, there is a detailed technical methodology that is used for predicting the changes in prices through the use of studying past market data. Mainly those involved in volume and rate. That means it's not necessary to pick up every release of data or significant event that occurs for accurate predictions and interpretations. There's no need to worry about any weirdly worded bank statements or announcements when dealing with Bitcoin.
Bitcoin is a trading instrument, and a means to step into a new market. And there's yet one more critical reason to mention why Bitcoin is such a great medium currency.
· Tax Reasons for Bitcoin Vs. Regular Money
One of the best things about the value of Bitcoin when using dollars, euros, yuan or any other currency is you never have to worry about any side shots from tax collectors. Even though Bitcoin has some extreme changes in price, they are based on traditional currencies of some kind. That means any deposits or exchanges, as well as withdrawals, are also denominated in conventional currencies as well.
Disadvantages of Trading with Bitcoin without Understanding it
Until you have a reasonably good understanding of the cryptocurrency, you'll be solely reliant on the advice from other people to give you the inside scoop on Bitcoin and trading it. Any significant events or anything of great importance will have to be relayed to you from a trusted, outside source. It can make for indecisive times and some confusion from time to time.
Buying and spending with Bitcoin in even the smallest amounts of be the best way to learn. You'll learn about different ways to trade below. And there are a ton of learning and educational platforms that teach all about the inner working so cryptocurrencies and Bitcoin. If you have more questions, there are also tons of online forums where pe are more than happy to help out.
How to Trade Bitcoin with Fiat (Regular Money)
CFDs are the power behind Bitcoin trading. They allow you to trade Bitcoin without ever having to use them. They were initially created for the primary purpose of getting your hands on Bitcoin without ever having to own it. And for many people, CFDs are a great place to start trading.
But today, for the sake of actual trading as an owner of Bitcoins – we're going to start by talking about the different types of traders there are. That way you can begin to understand which type you are likely to be most comfortable with. Each kind of trading has its own ups and downs and takes time to learn. The best traders often specialize in one type of trading but have a deep understanding of several different trading methods. There are some things to think about when trading with Bitcoin; various types of trading mean different ways of payments, timeframes, etc. Other factors are, what your own trading styles are, signals you follow and how many times you plan on trading on a regular basis. The following types of trading are all unique and we'll touch a little on CFDs in each.
The Basics of Bitcoin Trading Strategies
· Buy & Hold
Traders of this nature are commonly called "holders" within the Bitcoin community. They tend to buy and hold proponents that take a long view. They are typically ones that utilize the very long-term approach and bank on the rising price of Bitcoin. They think more regarding monthly, weekly and sometimes but not as often daily charts. They are a very distinct type of trader with the primary goal to get as much cryptocurrency as possible as they foresee it becoming increasingly valuable as time progresses on.
As of now, this method of trading is highly realistic with Bitcoin. Bitcoin is far superior to nearly every other currency in the market as of now. And it's continually climbing. There is a limited amount of only about 21 million coins, with inherent advantages over traditional fiat currencies. Anyone trading in buy & hold methods of trading usually base their actions on many different fundamental analyses than that of other technical analysis based decisions. They typically make their major decisions on the potential of Bitcoin, rather than on the current trends and charts.
They’re relatively unmoved by daily changes in Bitcoin prices. For the most part, the fluctuations that happen throughout the day rarely bother them. Many don’t even mind the extreme changes that occur and those with a lot of experience know the volatile nature of Bitcoin because of its’ history. They also tend to think of price crashes as major opportunities in which they can purchase more Bitcoin and make a lot of money in the long run. It’s like a sudden discount they love to capitalize on. They may pull profits if the price hits a peak they don’t think will maintain but rarely will they liquidate all of their Bitcoin assets at one time.
When it comes to CFDs, this isn't a good trading method. CFDs are not usually sustainable for holding for an extended period because of the price it costs to maintain them. It's simply not justifiable. Also, it's smarter to keep your Bitcoins in a person wallet, something you cannot do with CFDs.
· Swing Trading
Traders of this nature typically hold for a few days or a few months. The strategy is to trade significant price, moving between two different extremes. For example, if the price isn't following a strong upwards or downwards trend, it's tendency is to range between a high and low cost.
But the levels at which buyers or sellers reliably enter the market correlate with volume. The result is a fixed price of direction reverse. Bitcoin price can even remain within set levels for a specific period and still be OK for swing trading. Swing traders also consider many other factors; they rely heavily on technical indicators that reveal oversold and overbought conditions seen on the market. These conditions are usually dictated by common sense, and self-explanatory conditions and terms that indicate market sentiment as well as momentum, something that can become unbalanced and needs to be corrected. Many of the indicators frequently employed by traders of this nature are Bollinger Bands, RSI and Stochastic Oscillator.
Once Bitcoin prices reach a level, the traders then bet on a reversal of price. This is especially true when indicators are based on a change or direction. If the price continues instead of reversing back, it’s clear sign that it’s time to exit. Swing Trading is said to be highly effective when it comes to working with CFDs. There is a good time frame match that coincides with bigger price moves. And if prices continue past a reversal point that is projected, there is typically a minor loss. If on the other hand, they operate as predicted, then there is a lot of profit to be made.
· Trend Trading
This is a harder to navigate trading technique than many others. The trend is typically your friend until it ends. Traders of this nature often enter lengthy or prolonged patterns with the goal of capitalizing on it until the end of the trend. Not like swing trading, trend traders have no specific target in mind. And this is especially true when prices reach new highs like Bitcoin has this year.
The secret to active trend trading is to make it a type of art form, one where the trends formation is subtle and in early stages before everyone else jumps on it. With trend trading, you'll be able to hit higher highs with emerging trends at a consistent pace with continually growing prices and declining ones as well. It can be hard to get the hang of trend trading, taking some time to break through to another level.
Trends typically grow as people start to rush towards them, they gain momentum and when strong, are commonly noticed by non-Bitcoin owners and the media. In turn, this continually draws more and more attention to a trend in the long run.
Eventually, prices go up, reach a parabolic state and then dramatically start to extend. It's at this point that the trends typically start to crash at an alarmingly, almost violent rate. Quality trend traders get in quick, make money and exit before the crash that hits everyone else hard. Trying to pick the tops is a foolish way of trend trading as it's usually smarter to wait for assurance that a trend is growing. You can get confirmation through the Rate of Change and Moving Average Convergence-Divergence. Then you'll be able to take the profit sooner rather than later.
· Day trading
People who day trade know how to keep a position on a market while they’re on duty. They’re typically operating on a 12-16hour shift minimum. Sometimes their shifts can go much longer. And in fact, when it comes to day trading it similar in intensity to the stock market. You'll often hear them complaining their lack of sleep or looking like zombies, but they are a specific type of trader that takes a certain mindset to become. They may alter between swing trading and day trading, or nurse specific accounts until it's time to bear them out or liquidate them. Traders of this nature might trade on trends as well and will scalp when needed.
Individuals who day trade are also likely to follow different sub-hourly or hourly charts with the occasional reference to higher time frames when needed. Their trading style is often better reserved for the people who want to make trading cryptocurrency like Bitcoin their fulltime occupation and not some side hustle.
There are also scalpers, people who are looking to profit on the minute to minute exchanges. They typically use different imbalances in the market to order and book a multitude of minor profits. They usually get massive returns on a lot of smaller profits. It's more about the volume of trades here than the size of the trades themselves. Scalpers use charts that usually only show about 5 minutes of duration or so. This is a tough trading method and takes a lot of experience to get into.
Why Trade Cryptocurrencies vs. Other Assets?
There are some reasons that Bitcoin is such a lucrative trading vehicle vs. other assets. For one, it's something like the world has never seen. It's a cryptographic, untraceable, utterly secure method of changing value. It's one of the fastest, safest ways to anonymously transfer money around the world with record times. Even though it's called a coin, there isn't a coin to speak of – the entire platform is based strictly on the electronic transfer of money.
One reason Bitcoin became so popular is because of its ability to eliminate double spending effectively. It's been one of the only currencies to do that efficiently, and the only one online. It's a highly valuable commodity that is growing in popularity and starting to be accepted worldwide by governments and financial institutions all over the world. And as far as digital currency goes, it's nothing like say an mp3 that can be transferred from one person to thousands of others. Instead, it's a peer-to-peer based exchange that runs on the blockchain technology. For Bitcoin, there is only one transaction recorded on a public ledger (blockchain) that can be evaluated and validated by other users.
It's entirely safe, due to this fact: if any portion of the blockchain is found to be invalid or containing false information, then the entire blockchain that the single transaction is contained on is deemed invalid until the correct information is replaced. That means blockchains cannot be tampered with or manipulated by hackers or groups of hackers, government organizations, etc.
What else makes Bitcoin special? There are a lot of arguments as to the effectiveness of digital currency. And more importantly, as to whether or not it will succeed or fail outright. But as far as Bitcoin has come and seems to be going, it’s unlikely that the currency will go anywhere at all. The concern with investors is primarily based around investing, something that is a bit of a global phenomenon when it comes to Bitcoin. The politics behind the entire project are one that is designed to support all of the people involved and protect the general user as well as larger entities. It's the newest digital currency, and unlike gold and fiat (regular money), it's not regulated or trackable by any bank, government or other financial institution.
Even regular money is projected to crash at some point with a destabilizing centralized system. Whereas, Bitcoin is entirely decentralized and only expected to grow in value over the next 5-10 years in at which point it's likely it will stabilize and become a real currency on a worldwide basis.
There are more advantages than this, however. For example, there is a complete elimination for the need of any third party verifiers, and it can entirely bypass restrictions. Also, there is another major plus to trading, low cost for exchanges. And sometimes, you can even perform transactions for a completely free of charge service. Fees typically depend entirely on size of specific transactions. Bitcoin also offers a lot of benefits to merchants as well.
The transactions are entirely secure and irreversible; this protects merchants from fraud. Also, there is almost no risk ever of chargebacks or fraud; merchants can, therefore, offer their goods and services at a discounted price and thereby generate more sales. They can then pocket the differences for themselves, watch the profits grow and make more money than possible with traditional Fiat or savings accounts in banks. And, with no card processors taking massive amounts of capital merchants save on the percentages that would typically be taken out by more extensive processors like Visa and Mastercard.
What Indicators are Useful in Crypto Trading?
Regarding indicators and patterns, cryptocurrency is full of them. There are a multitude of different trading interfaces that commonly feature different indicators. They're basically a visual depiction of a mathematically derived and sometimes revelatory market aspect. They could be specific indicators like MACD, Bollinger Bands, RSI or others. There are many that you should master at a fundamental level at minimum, before moving on. They could include things such as money management and other discipline effecting aspects as well.
· Technical Indicators
Technical indicators use mathematical calculations to promote effective trading based on past and current prices as well or volumetric activity. The technical analysts use the information to help evaluate different levels of historical performance. They can, in turn, predict future prices with the given information.
But they do not give exact signals as to when to buy or sell. Traders need to learn the signals themselves to determine when and how to read them accurately. Several different types of indicators can be used to confirm to each's unique style.
· Avoiding Redundancy
Multicollinearity is a term used for stats that refers to the multiple different types of counting that occurs regarding the same information. It's a common technical problem with the analysis. And it happens when the same kinds of indicators are applied to a single chart.
The results will, in turn, create signals that can be determined as misleading. With experience, the indicators can confirm price moves that are expected. In reality, however, the multicollinearity will sometimes make variables seem less impactful than they are and make it hard to predict market conditions accurately.
· Using Complementary Indicators
To avoid problems that are associated with multicollinearity, traders would be smart to select indicators that work well or complement each other. They want this to happen without causing redundant results that could be seen as confusing. Traders of all types and sorts could use one momentum as well as trend indicator. A good example would be a Stochastic Oscillator or momentum based indicator. An ADX or Average Directional Index would be another example. Each provides different information, and each offers a different interpretation on market conditions. One may be used to confirm the others and make it a much safer investment.
How to Make a Profit When Trading Cryptocurrency
· How Much Can You Earn?
There is no real cap on Bitcoin as of now. With 21 million Bitcoins on the market, the platform offers near infinite possibilities for what can be traded. And considering that that Bitcoin has jumped more than $10k since August of this year, a lot of people made millions. That's not to say, there aren't some serious risks when trading. There is always the potential to lose as much as you made or more. And without correct knowledge of how to trade, the risk is even higher than one can imagine.
· Is Trading Crypto Safe?
As said before, there is always a risk. For the most part, crypto trading is safe when it comes to being impervious to hacking. But when it comes to actual exchanges, scams, and ICOs, that is a different risk altogether. For example, let's talk about Mt. GOX for a minute. Mt. Gox was the most extensive exchange in the world, holding a majority of all crypto investors and they ended up ripping off tons of investors. Billions were lost, and the CEO was eventually indicted on charges of several types of fraud.
· Managing Risk + Coping with Volatility
There is never really a way to predict the market with precise accuracy. It's next to impossible, but that's not to say it is impossible. Investors need to have specific strategies that allow them to cope with risks and the natural volatility of Bitcoin. It comes down to the idea that holding onto a trade that is losing while looking forward to its recovery, is considered the worst position a person can be in. This is about trading, finances, and emotions. Consider the losses and the cost of performing business and cutting it quickly. It's withdrawal that allows you to live to fight another day. A margin on call can wreck you and put you in a dangerous place.
Top Tips for Trading Bitcoins and Altcoins
Some compelling tips can help you save a lot of time when trading. For one, always determine ahead of time, the exact price that you'll be exiting on. You want to have this number at the same time you put in your order for your first trade. It's known as a close at loss feature. The feature is one of the most important on the market and said to help you if greed takes over or you start to pull profits before the time is right. You always want to set a price target at which you'll take at least a portion of your earnings.
You'll always want to make sure your trade is worth the risk. The potential for profiting should always be at least two times what it is of the potential loss. If there is a pattern's projected target that is a lot more then the price to enter than your stop loss is, it's probably an attractive trade. The ideal situation would be one in which your stop loss is placed to the other side of significant S/R; when the level breaks, you're signaled that prices are moving against the grain of your set expectations.
Always make sure and exercise extreme patience when you wait for potential trades to materialize. Another great tip is to never put more than 1% of your current capital for trading at risk on a single trade. It requires some serious time, money and education to learn how to trade efficiently.
What are the Best Trading Hours for Cryptocurrencies?
When it comes to trading Bitcoins, they are nothing like stock and commodities. Regular stocks only trade during specified business hours. But when it comes to Bitcoin, the trading remains constant and active 24 hours, seven days a week and 365 days a year. The clock from a volume standpoint is mainly distributed across American, Europe, and Asian sessions.
It's the most comfortable and most convenient way to trade. It takes minimal fees when compared to other traditional exchange types and withdrawals happen within a few hours on a global scale. There are far less harsh requirements for trading Bitcoin then there are for other exchanges like the stock market. And this is especially true if you're trading Bitcoin exclusively.
Why You Should Avoid Trading Binary Options on Bitcoins
Some options are available, but they're not the same as binary options - they're available through several Bitcoin traders. When used correctly, real option strategies can help to push the range of possibilities and extend a trader's field of market actions.
The options are used to allow inexpensive market positions, the trading of the volatile nature of the coins and much more. These complex options are said to be highly worthy of investigation because of their unprecedented flexibility.
Then there are binary options. They can effectively be used to predict future prices. They're available from a wide of brokers, but the problem is they're not necessarily recommended for Bitcoin traders that have better options. It’s because they put the control in the hand of the brokers, and when you’re a veteran in the world of Bitcoin, it’s a much safer bet to get different options.
How Do Spreads on Cryptocurrency Compare Exchange Fees?
When it comes to using different platforms and exchanges, spreads can differ slightly then the current price of Bitcoin. There is a difference between the buy and sell amount of any asset on a security standpoint. Bitcoin will spot price for a trader to buy a contract that is slightly under the current value being sold.
When using CFDs, they are suitable for traders. They can be highly efficient and an excellent place for a person to start with Bitcoins. But they are not considered to be stable or ideal for long-term holders of cryptocurrency. The reason is when you use a CFD; you have to pay the price for your coin to be held. It's not a lucrative or sustainable way for traders or investors to make money. The cost is considered a premium and takes about 1% of your daily position.
Leveraging on a CFD happens through a type of loan that is made between the exchange and the trader. The interest has to be charged for the entire duration of the arrangement. In contrast, Bitcoins can be contained in a person, digital wallet where you don't have to pay the daily percentage as you do on CFD. One of the most significant benefits of CFDs is that you can experiment on them as demos with no risk. The software used, simulates an actual trading interface in real-time with the actual price of Bitcoin, but you have simulated money you can use to learn. And you can use the demos as long as you’d like until you’re comfortable enough to trade for real money.
What Tools Can You Use to Help You Trade?
There are great tools on the market to teach you about trading. The main one we’ll talk about is called Plus500 Demo. It’s the software we spoke of earlier. It will allow you to get into Bitcoin without worrying about losing a bunch of money. You’ll be able to take all the same actions as you would on an actual trade exchange using virtual currency, but without all the risks that would happen when you’re investing real money.
As said before, trading takes extensive time and money to get into. You'll need to learn continuously; education is one of the most critical factors of trading. Having capital is also essential, but not just having capital – having the guts to take calculated risks when the times comes and not being greedy is important. Knowing when to buy in is as just as important as knowing when to sell. And that is precisely why using demo software like Plus500 is highly recommended before you start using real money. There are many other trading tools available as well. And knowing correct terminology is also vital to your success with Bitcoin trading. Also, it’s important to remember that each cryptocurrency has it’s own unique platform and method when trading. So use this as a kind of beginners guide into cryptocurrency trading with software demos and time, you'll likely get the hang of it hopefully make a lot of money down the road.