Cryptocurrency Guides

Simplified yet Essential Guide on how to Trade Bitcoins today

Bitcoin is the pioneering yet the most influential cryptocurrency in the world today. That’s why many investors and traders seek to earn big from it. But if you want to begin trading with BTC, you must know how to do it properly to avoid pitfalls. Hence, read  bybit review to help you choose a bitcoin exchange platform, and know how to trade BTC through this essential guide. 

Learn How to Trade Bitcoin today with these Simple Tips 

  1. Acquire Bitcoin 

To trade BTC, you must get bitcoins beforehand. There are few methods available to pull it off. 

First, you can create your own mining machine to mine bitcoin yourself. Mining machines are computers with powerful computing powers, and are equipped with a bitcoin mining platform. These computers can decrypt blocks where bitcoins are kept. Such blocks protects bitcoin using highly complicated algorithm miners must solve, hence a machine is helpful to make the process faster. 

The problem is, bitcoin mining is still very slow despite of using a mining machine. So, consider buying bitcoins, or sell commodities to earn it from others. 

  1. Know the Basic BTC Trading Strategies 

There are several strategies to choose from for trading bitcoins. For example, you can choose day trading, or trading your bitcoins to earn profits in one day. You can also choose Scalping trading, in which your bitcoins would automatically trade once the BTC value changes. The problem with the latter is you’d risk losing your bitcoin when negative changes occur. 

Automated trading is another option, in which you’d use a bot to trade. Place bitcoin in an account, set trading parameters, and the bot would automatically do the trading once those parameters are met. 

  1. Open an Account on a Bitcoin Exchange or Bitcoin Broker Platform 

After identifying the most suitable strategy for you, find a bitcoin exchange or bitcoin broker platform where you can do the trading. These are platforms which connect traders from all over the world. Be sure to find a reliable one because this would be the entity which would handle your bitcoin. 

Keep your strategy in mind while finding an exchange or broker. For example, if you opt for day trading, there are brokers which specialize on it. If you want to go automated trading, then find a bitcoin bot platform instead of regular exchanges. 

  1. Plan every Steps accordingly 

Planning your trading is different from coming up with a strategy. This circles more on controlling your behaviors while trading, and you must stick on it to avoid losses. 

For example, you can plan to close position when bitcoin sustain specified value drop. This is to avoid losing more because of staying. You can plan to close position on positive value growth to avoid any negative drops too. 

  1. Start Trading 

Now, it’s time to set things in motion. Open your account on the bitcoin exchange, broker or bot you’ve chosen. Study the past value of bitcoin to gauge its probable movement within few days or weeks. Prepare your bitcoin from your wallet, then go for it once ideal market conditions are met. 

While trading, always remember to be careful, and only use an amount you’re willing to lose. This is an idea any seasoned trader always remember to avoid sustaining big losses. After earning, keep profit in your bitcoin wallet for safety. 

Nicole Hennig
Nicole Hennig is a freelance writer, content writer, blogger, and also a photographer. She graduated from the University of Caloocan in Johannesburg, South Africa in 2015.

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