Bitcoin is one of the hottest assets in the world right now, growing beyond all previous expectations and still gaining more momentum as the days go by.
Sometimes referred to as margin trading, leverage trading is one of the most attractive things about online Bitcoin trading. With this leverage option, traders can borrow funds from their crypto broker to amplify their buying/ selling power and increase their potential returns.
This way, traders with small capital can participate and take full advantage of leverage trading to open larger positions online in the Bitcoin market.
Fiat-to-crypto exchanges allow you to trade cryptocurrency against fiat money. You have trading pairs like BTC/USD.
While crypto to cryptocurrency exchanges only allow you to trade one crypto against another I.e. BTC/ETH.
Understanding the kind of market, and the kinds of crypto pairs you want to get involved in are very important.
Trading platforms are sites that connect buyers with sellers anonymously in an automated form. This means that you buy from people who’ve placed sell orders on the site without ever communicating with them directly. The platform usually takes a small fee for the service.
Conducting transactions on trading platforms is usually the cheapest way to get bitcoins or other coins, but often it’s not very user friendly. Trading platforms have advanced options such as limit orders and stop losses that can confuse inexperienced users.
Also, when you place an order, it may not be fulfilled immediately due to a lack of sellers at the price at which you want to buy.
Examples of known trading platforms: eToro, BitValve, Phemex etc.
Sign up with invitation code GNFLL. Welcome Bonuse can be used to open positions, to pay fees or to cover losses. Bonuses cover 50% of fees and losses prior to user's own capital. Bonuses cannot be withdrawn to wallets, or transferred between trading accounts.
Don’t Panic
When trading Bitcoin, it’s important to not use your emotions. Most traders lose money when they panic sell or panic buy. Bitcoin trading is very volatile, so make up a plan and stick to it. Don’t let your emotions change your trading plan.
Don’t Go All In
It is very important to not use too much of your funds when trading. Why? Because if you risk too much, you will have a hard time not getting emotional about your Bitcoin trade. Never hold more than 50% of your holdings on a trading exchange, and never use more than 5% of your exchange balance in a trade. Learn to diversify by knowing the best crypto asset to buy at any time.
Never Be Greedy
If your trade is going in the right direction, you can move up your stop loss into the green. Because no matter what happens by now you’ll make at least a small profit. So, it’s better to guarantee a 20% win, than to gamble for 40% and risk losing.
Read and Learn from Mistakes:
All Bitcoin traders, even the professionals, have lost trades many times. Now, the important part is to ALWAYS learn from your mistakes. Because, if you do then your trading mistakes will always make you a better trader.
Take A Step Back:
Make sure that you are not staring too much on the lower timeframes like the 15 min or the 1 hour. Instead, now and then you should take a step back and look at the bigger picture. Because, the bigger timeframes are more significant, and identifying the overall trend will help you know the best crypto to buy even in the smaller timeframes.
It is important to understand that not all cryptocurrency exchanges are alike. Some allow you to trade with other users, while other exchanges will only sell you Cryptocurrency directly. Some will not even give the actual coins but will only allow you to speculate on the price.
Cryptocurrency exchanges are companies that allow you to exchange “real money” (i.e. USD, EUR, GBP, etc.), also known as fiat money, to cryptocurrencies like Bitcoin or Etherium and vice versa. The exchange is a website that helps you faciliate this trade.