Bitcoin is the first decentralized currency which quickly changed the cryptocurrency platforms across the whole world. Along with its introduction to the markets, several other coins also emerged. Today Bitcoin is priced at 15,849.26$. This makes it a requirement for saving some so that their benefits can be enjoyed by us too.
For acquiring Bitcoin or any other Cryptocurrencies, two methods must be followed. The first method is to buy some of them from the online wallets and hope for its value to increase in future so that one can hope for profit. Another method is to place bets on it without owning the tokens in the market. The latter method is termed as bitcoin trading. Whenever a person places their bets on the current speculations of the market, they bet on whether the price of the Cryptocurrencies will increase or decrease. This process utilizes the need for making a small deposit and gets the gains from any profits made. However, due to the extreme volatility of Bitcoin and other Cryptocurrencies, it can be said that a loss of deposits can be evident.
1. Opening a trading account:
For placing a bet or simply put trading, one needs to open a trading account. There are various trading platforms like the Poloniex or Bitrex. It takes a few minutes to open an account and make a deposit.
Before starting the betting part, it is advisable to research about the various Cryptocurrencies. It is required to understand the current prices of the major coins and get a general understanding of them. The same applies to Bitcoins as well. As the Cryptocurrencies are above the speculations of the financial and the political effects in the market, it is advisable to know the factors that cause its price to go up and down. The various factors affecting the prices are supply, market cap, key events and industry adoption. Additionally, various traders are found to be studying the charts of the coins for a successful bet.
3. Applying strategies:
After researching all the necessary requirements, it is time to know about the strategies of tradings. These strategies help to get an objective of what steps are to be followed. The various Cryptocurrency trading strategies are day trading, swing trading. scalping and automated trading. These strategies are effective when adopted in an effective manner.
4. Placing a trade: After applying research and strategies
it is time to place a trade order. This usually involves two steps, the sell or the buy trade. In case the charts seem like the price is going low and is likely to increase, the buy order is confirmed where coins are bought. After a certain time, if the price goes up or down, the sell order is processed. Depending on the amount made back, a profit or loss is incurred.
This is the last step which depicts how much amount one has gained or lost. After learning of the outcome, the above processes are repeated.
Thus, there are no foolproof ways where it can be claimed that a trader will make a profit each and every time. But, it can be said that a trade’s profitability can be increased by knowing the various parameters needed. However, this article recommends a trader to successfully divide the amount of their trade between various Cryptocurrencies so that one out of all the trades made will provide a profit.
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