Steps to Trading Bitcoin
By Space Coast Daily // January 15, 2020
Bitcoin is the world’s first cryptocurrency with a widespread popularity across the globe. This has given rise to the number of traders in this industry. Bitcoin was founded in 2008 by Satoshi Nakamoto.
A paper was published via the Cryptography Mailing List which explained the mechanics and ideology behind the cryptocurrency.
In 2009, the first Bitcoin software client was released as Nakamoto worked with other developers on the open-source team, without exposing his identity.
The founder vanished without a trace in 2011, after which his colleagues worked endlessly to develop the valuable cryptocurrency to its full potential.
The world’s first Bitcoin exchange was established in October 2009, with 4 million Bitcoins being mined as in November. During that period, $1 was worth 1,309 Bitcoin; which is a fraction of a penny. However, within eight years, it hit the $10,000 benchmark.
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What Made Bitcoin So Popular?
To begin with, trading bitcoin gives avenue for traders to maximize their profits during market volatility. This makes traders enjoy trading the cryptocurrency. The media is a major factor that influences bitcoin volatility. Breaking news cause the cryptocurrency to fluctuate, which enable traders cash in.
Bitcoin routinely stays at the forefront of CFD trading; all thanks to Bitcoin traders and speculators. Merchants use it as well as the preferred payment option.
Also, it is being used for trading purposes and financial transfers. Despite not being associated with any country or corporation, it is still widely popular as a financial trading instrument.
Bitcoins are mined by robust high-tech computer hardware and software. It is estimated that a total of 21 million Bitcoin will be mined, after which there will be no further production.
This as a result of the algorithm which controls the production of bitcoin and limits its quantity, alongside with the rate at which it is produced. It implies that bitcoin is a finite commodity, just like gold, crude oil and silver.
Bitcoin Trading Strategies?
Scalping:
You can scalp the bitcoin market by taking consistent, intraday trades on minor price movements. This way, you make small but continuous profits.
Automated Trading:
This is ideal for those who choose to be passive traders. Trading processes can be automated to react to dynamic market conditions on behalf of such traders.
Day Trading:
Traders with short term plans of trading the bitcoin market based on developing news or emerging patterns can use this strategy. Positions can be taken based on short-term price movements, and then closed at the end of the trading day.
Swing Trading:
For bitcoin traders looking to maximize market momentum, this strategy is ideal. Trades can be opened on various highs and lows of the market trend.
A trader can enter a trend as it forms, hold on to the position until the end of that trend before closing the trade.
In order for you to trade, here are the steps that you must take:
- You need to open an account. There are several brokers that offer great trading platforms on bitcoin.
- There is a need to develop a trading plan.
- Ensure that you make an extensive research on the cryptocurrency.
- You can then place a trade.
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