A Bitcoin Trading Tips for Beginners
By Space Coast Daily // April 14, 2021
We’ve seen a tremendous rise in altcoins over the last couple of years. The cryptocurrency market has become more saturated than ever and that’s not surprising considering how well some coins are moving even amidst the pandemic.
If you’re planning to invest in these virtual currencies, why not stick with the one that started it all?
Since being introduced over a decade ago, Bitcoin went from being less than a dollar to becoming something that’s worth over $60,000. The world’s leading crypto has become one of the frontrunners in 2020. Despite its tremendous price increase in the last couple of years, Bitcoin is still worth getting into.
Experts still forecast tremendous growth for the crypto in the coming years – meaning it hasn’t reached its full potential yet. If you want to invest in this particular crypto then here are a few tips on how you can significantly decrease the risks while upping your chances at getting better gains.
Trade On Trusted Platforms
The good news is that it is very easy to get into crypto trading. There are countless websites and platforms that allow you to begin trading in just a few clicks. However, keep in mind that not all of them are actually good for you.
As there are many platforms available, it is a must that you become discerning when it comes to choosing one. For starters, platforms that let you buy bitcoin should allow you to do so using various currencies and methods. This means finding a trading platform that’s very accessible and versatile.
It’s worth noting that there are underlying costs when it comes to buying and selling bitcoin. Each platform has its own rates on how much they’ll charge you for anything that goes on in the blockchain. Ideally, you’d want to find trading platforms that charge the lowest rates for any transactions.
Lastly, it’s best that you read up on reviews before you use a trading platform. There’s a helpful community of crypto traders worldwide who’ll help you find the best trading platforms that are fit for beginners.
By trading on trusted platforms, you can significantly lower the risks you come across. Keep in mind that there are various ways you can get your bitcoin wallet compromised online so be very careful about how you work your way around trading.
Ideally, you’d want a trading platform that gives you access to a demo account. A demo account should allow you to trade bitcoin in real time without having to spend any actual money. It’s a good way to practice without risks. Luckily, most platforms offer demo accounts.
The concept of trading is simple. You buy bitcoin at a lower price and then hope to sell it for a profit later. Due to its easy-to-understand concept, a lot of people tend to get greedy when they are just starting out. However, it’s always best that you start small up until you master trading bitcoin.
It’s very exciting to begin trading bitcoin but since you are new to the practice, it’s best that you be very careful. It’s easy to get a profit but it’s also very easy to lose your initial investment as well.
Once you master trading bitcoin, you can move on to bigger trades. Some experts even trade multiple currencies at once. Trading bitcoin is a learning process. It may seem easy at a glance but there are many tips and tricks behind it that can help you maximize your gains.
Analyze, Don’t Guess
The common misconception when it comes to bitcoin trading is that it’s purely about luck. However, bitcoin trading is all about analysis and your understanding of the crypto market. That being said, you can increase your chances of making gains by being more discerning about your trades.
One of the ways you can help your trades is by analyzing the current movement of bitcoin. While the prices do move erratically from time to time, there are also certain patterns that you can follow as well. Bitcoin usually relies on good momentum so when movement is good, you can expect the price to be stable at around that price.
On the other hand, bitcoin is also affected by various factors such as developments on the blockchain and news about bitcoin. Always get yourself updated about the latest happenings connected to bitcoin. Good news means good movement, bad news means bad movements.
It’s also worth noting that there are special filters called indicators on trading platforms. These are complex but very useful tools that can help you predict the movement of assets easily. There are a lot of techniques involved in using indicators and usually, you’ll be using more than one as you trade.
Always Keep Your Cool
As compared to forex trading and stock market investing, cryptocurrencies like bitcoin are way more volatile. The price of bitcoin can drop by thousands of dollars in just a split second and that has happened more than once already. What’s important though is that you keep a calm head no matter what happens.
Trading with your emotions is never a good idea as you can end up losing more than you have already. For instance, if you’ve been on a losing streak with your trades – it might be better to stop for now. Don’t hold on to your hopes by believing that the next trade or two will make you recover your losses immediately.
It goes the same for when you see the price of bitcoin surge dramatically. You might think that it would be wise to suddenly invest more but keep in mind that some of bitcoin’s upsurges are followed by significant downtrends.
Despite what many others believe, it’s not yet too late to get into bitcoin. You can still earn a lot of money through trading but that’s only if you know how to do it properly. It may seem tough for beginners to get into but with enough practice, you can begin trading like a pro in a short matter of time.