With the existence of so many local and international cryptocurrency exchanges such as Coinbase, Bittrex, Binance, etc has made the future appears bleak for people to participate in the ever-lucrative crypto and bitcoin trading. The existence of established and notable cryptocurrency exchanges have made so many people lose interest and enthusiasm for trading bitcoins.
For you to make money from bitcoins, you must be a successful bitcoin trader. Without being a successful bitcoin trader, the probability of making a profit from it is zero. Bitcoin trading may seem intimidating for most crypto enthusiasts at first, but with the aid and help of a good broker, it becomes easy for you to make a profit from the sale of bitcoin on the first day you start trading.
There are no hidden secrets of making money from trading bitcoins as well as other cryptocurrencies; it is easier to start bitcoin trading than trading stocks. Before starting out as a bitcoin trader, you need to learn the dynamics and the principles of the trade, hence, you will fail if this is not observed.
5 Simple Steps To Earn and Make Profit From Bitcoin Trading
Here are some key tips that must be observed to ensure successful bitcoin trading.
1. Opening an Account
Firstly, you start by setting up and opening an account with a trusted and reliable digital trading platform. Opening an account for the sale of bitcoins wouldn’t take much of your time. Setting up an account prepares the framework and foundation to start out as a bitcoin trader.
If you are already making use of CFDs, you wouldn’t need to have a Bitcoin exchange account. The trading platform which you sign up with will enable you to handle and process crypto trades in multiple exchanges for you.
2. Add Funds to your account
After opening an account with a digital trading platform or a reputable broker, the next step which you must follow is to add funds to the account. Lots of brokers provide multiple payment methods (PayPal, Neteller, Payoneer, Skrill, Webmoney, Payeer, Bank deposit, Wire transfer, etc) for clients to make deposits into their trading accounts. After adding funds to your account, it is recommended that you secure your bitcoin wallet.
3. Have a Trading Strategy or a Master Plan
The real trading starts after you have created an account and added some funds into your trading account. The next step is to create your trading strategy and plan. The amount of success and profit a bitcoin trader derives from bitcoin trading lies on his trading strategy. Without a trading strategy, a bitcoin trader would be lost and might lose his deposits in the twinkle of an eye.
If you do not have any experience of digital asset trading or if you are new to Bitcoin and crypto trading, you’ll need to come up with a plan which will enable you to make the right decisions when the stakes are high and otherwise. The end goal of this plan is to ensure that you do not necessarily have to open your trades for far too long or close it earlier than necessary.
4. Make In-depth Research
It is required of you to make research and get information about the latest trends and news related to bitcoin trading. You’ll need to be properly informed on the latest news and relevant information before you start trading.
Staying updated on the latest happenings in the world of cryptocurrencies gives you an edge over other traders to have an idea on the cryptocurrency prices. With quality tools such as charts which are provided by your crypto trading platform, you can observe and interpret the bitcoin’s behavior.
Make use of the relevant data derived to comprehend and to understand how the crypto market works. Use the data and the information gathered to check for the upcoming trends in the market.
How to Place A Trade and Profit For Yourself
After you must have researched and decided on your position, the next step to make is to place a trade.
You simply deposit the amount which you wish to trade and decide on your conditions by setting a stop just in case you notice a limit or if the market moves against you. Stops and limits are helpful because they enable you to mitigate dangerous risks.
Simple Trade Strategies That Can Help You Make Profit From Bitcoin Trading
Here are some helpful tips that will help you make more profit from Bitcoin trading:
Take full advantage of the day trading by basing your trade position on the expected short-term movements and get to close the position at the end of the day. This is a good strategy to use if you seek to exploit the short-term opportunities in the crypto market based on the developing news on the price of cryptocurrencies.
Scalping is another good strategy to use if you intend to make small but continuous profits instead of waiting for a major breakthrough with the potential of making a big profit. In scalping, you simply place frequent intraday trades which are based on the minor price movements.
If your trading strategy is to capitalize on opportunities arising from the market momentum, then, Swing trading would be perfect for you. Swing trading allows you to catch up with trends as they form and you get to hold on to the position till the trends start showing signs of a reversal or if that trade runs out.
Automated trading: If your plan is to make passive income from bitcoin trading, you can consider making use of tools that can make money for you even when you aren’t present. Automated trading is one of the best tools used by passive traders. Through this tool, crypto traders can start trading in an auto-pilot mode and automate their trading using tools that quickly react to the changing market conditions.
All these strategies outlined above work well for cryptocurrency traders but the potential for risk is always present. When starting out, we recommend that you start your cryptocurrency trading with a reputable e-currency trading platform which will provide the resources and information of all you need to excel in digital assets trading.
Zara is a business consultant, life coach, content creator and a media entrepreneur. On this blog, I share various tips as I inspire my readers and provide business ideas that would generate revenue for them. Feel free to read and share my posts with your friends.