Bitcoin trading can be extremely profitable for professionals or beginners. The market is new, highly fragmented with huge spreads. Arbitrage and margin trading are widely available. Therefore, many people can make money trading bitcoins. Bitcoin FAQ For Beginners Who invented Bitcoin? In , during the global economic crisis, also known as The Sub-prime, a man or woman nicknamed Satoshi Nakamoto decided that it was the right time for the first digital decentralized currency. On October 31, , the Bitcoin idea was introduced with the release of a whitepaper titled Bitcoin. Dec 18, · day trading bitcoin for beginners Singapore; You can start with a trading signals provider, especially if you are a beginner day trading bitcoin for beginners Singapore The truth About Binary Options. Get your feet wet day trading bitcoin for beginners Singapore and try a few options to settle on your best fit today.
Bitcoin day trading for beginnersHow to Trade Bitcoin: Trading Strategies Guide for Beginners
However, it will take a lot of preparation and effort on your part. Reportedly, good day traders make one to two percent in profit per day. The statistical probability is slim but how can you beat the odds? Your chances of success depend on taking the right steps before you start trading:. Even though you can get deep into highly technical indicators, you should learn the basics of simple day trading strategies in the beginning.
When it comes to starting out, the more straightforward — the more effective. Basic questions you should be asking yourself when deciding on a strategy are:. In any case, day trading is a very particular kind of activity.
Positions are based on short-term movements so you need to respond quickly. If there is relevant news that could affect the price or you see an emerging pattern, the window for any actions is very limited. After you master basic techniques, you could consider using a series of strategies. There is no denying that computers can perform calculations much better than humans.
It is crucial, especially when there is real money on the line. People often make mistakes by holding trades for additional gains even though it goes against their chosen strategies. Failure to stick to the plan can have significant ramifications. People lose existing profit just because they feel they can get more. Another human flaw to point out is not being able to react quickly enough. Trading bots never make erratic decisions because a predetermined algorithm dictates every action.
Also, when it comes to day trading, timing is key. Bots can react to data and execute transactions in a matter of seconds. However, a trading bot is as good as the technology behind it. When you choose the automated trading platform by 3commas, you get a robust platform, with no downtime and technical hiccups. And considering you can share and learn strategies, indicators, and settings with other traders in the community, your trading improves even further.
All trading charts show data points for the past and current price movements. A Bitcoin day chart focuses on its price action for a specific day. You can also view changes within a specific timeframe, which helps traders make more informed decisions. Whilst there is no shortage of line and bar charts, one of the most valuable types is the candlestick chart.
It offers plenty of valuable information in a concise form. You can transfer wealth via Bitcoin without needing to use a third party. There will only ever be 21 million Bitcoin in circulation of which, Trading Bitcoin works in a similar manner to the conventional stock market, where the price is decided not by any government or regulatory company, but actually by the people themselves.
Anybody can buy or sell Bitcoin at any time. When more people are selling than are buying, the price falls. Conversely, when there is lots of interest in purchasing Bitcoin, the price will rise. BTC is a highly flexible market — the price can rise and fall very quickly. By learning about the market, you can take advantage of these fluctuations. BTC has become a highly popular asset among traders, for several key reasons.
Due to enormous amounts of speculative, short-term interest in the cryptocurrency market, BTC has experienced high volatility. Not only does this volatility make BTC trading exciting, but it also provides plenty of opportunities to rake in huge profits.
Of course, elevated risks are inherent to high volatility — which is why traders should take care to develop a risk management plan. The traditional stock market, on the other hand, is only operable Monday — Friday during standard business hours. You can trade on the BTC market at any time and in any place in the world. This means that you can also set up BTC trading bots to take advantage of market fluctuations while you are sleeping.
If you want to hold BTC over the long-run, you can do so. By buying low and selling high a few months later, you can gain an enormous profit in one fell swoop. On the other hand, you can try to take advantage of fluctuations in prices that happen within a day. This can lead to smaller, but more consistent profits. For beginner traders, however, long-term trading is a simpler path.
Bitcoin has often been compared to an actual traditional stock, and in theory, they operate much the same. Both have their prices and values influenced by the actual owners of the commodity, and those change based on the general public interest in them. However, Bitcoin trading is completely unregulated by any governmental agency. Therefore, you can rest assured that your investments are protected by outside influence.
This includes a warrant that freezes your assets in court and other things that can help the government to get access to your money. This evidence easily disproves the false claims that Bitcoin is less secure than traditional stock investments, as you and only you can access your cryptocurrency trading account. This defense has even held up after a man holding over million dollars worth of Bitcoin died, and his clients were unable to access his money in any way, even though he was holding their cryptocurrency coins.
The Bitcoin trade is definitely secure and protected from any outside interference. Additionally, Bitcoin is solely online, and therefore you do not need to concern yourself over paper bills and cheques and anything else like that, which can be stolen or lost in the real world. By switching from the aging and decreasingly reliable banks and government agencies that are easy prey to the hundreds of daily cyberattacks worldwide, you are able to rest assured that your money is the safest it can ever be, stored in a Bitcoin or cryptocurrency wallet.
The latter method is how Bitcoin CFDs contract for differences work. When you pursue this method, you are never interacting with an exchange directly. If you predict incorrectly, then you have to pay the associated loss. By making a correct prediction, you will earn the associated profit. One of the significant advantages of trading Bitcoin CFDs is the addition of leverage. After all, you are able to trade multiple times the amount of BTC than you would if you had to buy the cryptoasset outright.
The downside, however, is that potential losses are increased as leverage is increased as well. If you net a profit, it would be 50x higher than what you would have earned if you purchased the cryptoasset outright and then sold it. But, if you predict wrongly, your losses will be 50x as much. So, in order to determine whether you want to buy and sell Bitcoin outright or work with CFDs, you must determine if the potential rewards are worth the risk. Before you delve into cryptocurrency market research, we recommend reading up on the following terms and their applications.
On a Bitcoin trading platform, buyers and sellers are automatically matched up. These platforms act as a middleman between both parties, and trades are based on the current BTC market price.
Marketplaces, on the other hand, are peer-to-peer, meaning that sellers and buyers communicate with each other directly while carrying out a trade. For higher volume trades, it may be better to use a Bitcoin broker.
The dealer acts as a middleman, finding buyers and sellers who have large pools of cryptoassets. There are usually larger associated fees, but this option is more convenient, more flexible, and faster than going through an exchange platform.
It will look like this:. This is different from fiat currency prices because there is no universal BTC price that everybody follows. Depending on the platform, you may be able to change the timeframe that highs and lows are pulled from. This term refers to the total number of Bitcoins that have been traded in a specified timeframe. Traders use volume to determine the significance of a trend. If a trend is significant, it will be accompanied by large volumes — and, conversely, low volumes indicate a weak trend.
A market order also referred to as an instant order is where a trader sets the amount of BTC they would like to buy or sell. They can then order the exchange to execute the purchase or sale instantaneously. The platform will then match you up with a buyer or seller to meet your order.
In many cases, you may be matched with multiple people and at different price points. The order will be complete once enough buyers or sellers have been gathered to fulfill your set amount of BTC. This kind of order allows traders to buy and sell BTC at a specific price that they can set. This is used to minimize losses in case the price of BTC or another kind of crypto drops dramatically. If you learn to study the patterns that Bitcoin follows, and where to buy and sell at, you can take advantage of long-term trends and minor fluctuations alike.
The two main types of price prediction are fundamental analysis and technical analysis. As mentioned earlier, there is no official Bitcoin exchange. Users have many choices and should consider the following factors when deciding on an exchange:.
Could the exchange run away with customer funds? Location — If you must deposit fiat currency, and exchange that accepts payments from your country is required. Liquidity — Large traders will need a Bitcoin exchange with high liquidity and good market depth.
Customers can trade with no verification if cryptocurrency is used as the deposit method. Global Bitcoin trading data shows that a very large percent of the global price trading volume comes from China. The main reason China dominates Bitcoin trading is because financial regulations in China are less strict than in other countries.
Additionally, Chinese exchanges charge no fees so bots are free to trade back and forth to create volume. Kraken will be used as an example for this guide.
The process and basic principles remain the same across all exchanges. Below you can find the first three verification levels:.
You should see something similar to the screenshot below. Select your funding method from the left side:. Deposits made using the traditional banking system will take anywhere from one to three days. Bitcoin deposits require six confirmations, which is about one hour. Using the black bar at the top of the page, you can switch trading pairs.