There are hundreds of crypto currencies available for traders, but bitcoin always remains a hot fedorite investment option for all.People choose bitcoin for their trading for various reasons.cryptocurrency exchange is the oldest crypto that has received a legal approval from a country named El Salvador.Their government has passed the law in 2021 and approved the bitcoin as a legal tender.Apart from that, large businesses and retailers like Starbucks, Microsoft and PayPal has started accepting bitcoin as a valid payment mode.
So, if you want to make an investment in crypto then bitcoin will be the first option that you have.
Trading bitcoin is not a simple job.It is similar to stock trading, but hard to predict the price of bitcoin.Even, you can lose your funds overnight by investing your money in bitcoin because it is highly volatile.
So, before you trade bitcoin, you need to know some basics of bitcoin trading.
If you are confused how to start and where to trade bitcoin
Mini Guide to Bitcoin Trading
Before you invest your funds on crypto, you need to consider the following factors:
– Bitcoin is capped within a certain number; and miners cannot mine bitcoin in infinite number.Thus, it is necessary for you to keep your basic understanding of Bitcoin trading and ideas on price fluctuations crystal clear.When there is adequate supply of BTC in the trade market with less number of buyers, the price of bitcoins automatically falls down and might make you incur losses; otherwise, when the demand of BTC in the trade market is high enough, the price of the cryptocurrency rises automatically..You can sell your coins during this time to get a huge return.
– There are some changes in regulation of bitcoin or you can find some vital news about bitcoin.Such news and regulations can affect the price of such coins, and you need to stay updated with these recent trends.You can find such news on your exchange.It is better to avoid fake news scrolling over social media platforms because you can lose your profits by selling your coins due to such fake news.
– There are no banking regulations for bitcoin, as there is no government or bank available that can control such cryptos.But, government of different states and their lawmakers are trying to frame a universal regulation for bitcoin.
If they successfully launch their framework for such crypto then bitcoin will get the legal name, and the price of such coins will be automatically increased.
Some traders prefer to trade bitcoin for short terms and some can keep such coins for a longer period of time.It is better to hold such coins for a longer period because you can get better returns on your investment, as bitcoin is considered as an asset like gold or metal.
Trading strategies for bitcoin
– Day trading: You can trade bitcoin on a daily basis.For example, you can buy such coins in the morning and sell your coins at night to earn a short-term profit.You do not need to take the stress of market volatility and you can get a sound sleep at night after selling your coins.
– HODL:If you want to earn a huge profit then you can choose this trading strategy.According to this strategy, you can invest your funds in bitcoin and hold your coins for years.
You can do a proper market research and choose the perfect time to invest your funds, when the price of bitcoin is low.
You can sell your coins in multiple ways, but you must have an exit plan when you enter into this market.You can sell your coins through your exchange, convert your coins into altcoins and use altcoins to cash your coins, or you can simply use a BTM to convert your coins into cash.Do not sell your coins due to some fake news circulated by major investors, and you should not invest your funds on crypto only because of your friends doing the same thing.
Apart from that, you must invest your surplus funds on bitcoin and you should diversify your portfolio by adding some other crypto currencies and tokens..
