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Bitcoin Trading 101

By July 7, 2020 how to

Did you know that traderXlab is among those Forex brokers that accept bitcoin deposits? Now that you do, it’s time to look into Bitcoin trading 101, as well as some popular Bitcoin trading strategies. 

First and foremost, in order to make money trading cryptos you need to open an account with traderXlab, a Bitcoin forex trading platform of a new generation. All live account holders get instant access to not just the trading platform, but also a personal financial advisor, who will guide you through the process of trading bitcoins for beginners. If you already have previous trading experience, you will surely enjoy getting daily tips and tricks on trading Bitcoin for profit.

Understanding Bitcoin

Bitcoin is a form of electronic money. However, unlike the traditional digital money, Bitcoin isn’t controlled or issued by a bank (decentralised) and is completely untraceable. With the elimination of the middleman and fees, cryptocurrencies became completely irreversible – if hacked, stolen or sent to the wrong person, your Bitcoins are gone forever.

Bitcoin Trading Hours

Since cryptocurrency is not regulated nor issued by any country, and neither does blockchain rely on a particular timezone, there are zero limitations to Bitcoin trading hours. Unlike stock markets that allow you to carry out trading activities strictly within their trading hours, Bitcoin and other cryptocurrencies can be bought and sold 24/7.

Bitcoin Trading Platform

TraderXlab is a Bitcoin trading platform that allows you to trade cryptocurrencies like BTC against all major fiat currencies. What is more, traderXlab platform is designed to provide crypto traders with everything they may need along the way: live news, charts, updates, analytics, social trading and much more. 

Cryptocurrency Tips 2020

The times of cheap Bitcoin have long passed and we don’t expect BTC value to drop in the foreseeable future. The price per single Bitcoin in 2020 is way over $9,000, making it quite an expensive investment, especially for those who are just starting out. With traderXlab, you don’t need to own actual cryptocurrency to be able to trade. What is more, you can trade with leverage, which gives you that extra trading power.

Unlike the process of investing in Bitcoin that requires buying and then waiting indefinitely for the price to change, you can trade cryptocurrencies against other fiat multiple times a day. This way, trading Bitcoin for profit becomes a much more realistic task with potentially a highly rewarding outcome.

Bitcoin Trading Strategies

Just like trading regular currencies, blockchain traders can follow a particular path or a combination of different strategies. Before we look at each of the strategies individually, let’s once again remind ourselves of the crucial Bitcoin day trading rules. 

The Bitcoin day trading rules are:

  1. Never invest more than you can afford to lose.
  2. Always pay attention to Bitcoin when trading altcoins.
  3. Diversify your portfolio.
  4. Stay cool and don’t get greedy.
  5. Analyse and learn from your mistakes.
  6. Use Stop Loss.

 Day Trading Bitcoin

This day trading strategy is all about trading Bitcoin within the standard market hours without exposing open positions to overnight risk. This strategy is best utilised when an emerging pattern has been spotted or as a way to capitalise on short-term opportunities based on the latest news release.

Swing Trading Bitcoin

Bitcoin swing traders enter the market once they’ve identified a particular trend within the current realm, and close their position before they notice a 180 change in movement. 

Scalping Bitcoin

A Bitcoin scalper’s focus is drawn to taking frequent profits on small price movements throughout the day. 

Investing in Bitcoin

This is the traditional investing strategy that requires buying lower and selling higher. For this to work, investors need to wait for a long time (weeks, months or years).

Summary

Bitcoin Trading 101 provides a comprehensive view on blockchain trading, platform and strategies. Bitcoin trading is very similar to day trading as they both follow the same strategies and rules. You can trade Bitcoin against fiat currencies on traderXlab platform multiple times a day, every day. Understanding Bitcoin is a good place to start. Select the strategy that suits you best, stick to the Bitcoin day trading rules and learn from your mistakes to improve your trading.