Oct 23, · Bitcoin trading platform are online sites where buyers and sellers are automatically matched. Note that a trading platform is different from a Bitcoin broker, such as Coinmama. Unlike trading platforms, brokers sell you Bitcoin directly and usually for a higher fee. May 18, · with a good strategy,research and some knowledge on price action,support and resistance you can make very good profits,With my trading experience, trading Strategy Guides offers trading guides and resources to help traders in all walks of life and motivations. i will guide you in all skill levels how to trade stocks, options, forex, cryptocurrencies, commodities, and more. i will address and. Aug 05, · Whether you are a beginner or a seasoned bitcoin trader, the following tips will help you a lot to be successful in every trade you make: Trade on Only What You Can Afford to Lose. It is advisable to trade only on what you can actually afford to lose. Traders always hope that they can make a profit from bitcoin trading.
Trade bitcoin successfullyEasy Strategies to Build a Successful Bitcoin Trading Journey - TechStory
Unlike stock markets, there are no official Bitcoin exchanges. Because there is no official Bitcoin exchange, there is also no official Bitcoin price.
This can create arbitrage opportunities, but most of the time exchanges stay within the same general price range. Bitcoin is known for its rapid and frequent price movements. 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.
The channels show where Bitcoin is trading at a particular time and compares it to the overall direction. Price changes are not linear. That is why technical chart analysis utilizes levels of support and resistance — they showcase short-term trends within the overall trend. Resistance shows where an upward trend is expected to pause or rebound. That means that there are many buyers concentrated at that time. Resistance can be used as an exit point for a transaction.
A level of support can be used to predict where a downward trend can pause or rebound. This can be used as an entry point.
Market orders are the fastest way to enter or exit a trade at the best price available at the time. However, instant execution means that the price becomes secondary. When you place a limit order, it will only be triggered once Bitcoin reaches the price you set. Thus, you may get a better price if you are patient enough. Bear in mind that the price should be profitable for you but still realistic.
The limit order will not be executed until there is a seller or sellers willing to accept the price that matches yours. If the market price is lower, it simply will not execute your order.
Here are the benefits of limit orders:. However, some aggressive trading techniques do not suit limit orders. In situations when fast execution is more important than the price difference, you should opt for market orders. When you are day trading, the activity on the exchange occurs very sporadically. Before you commit to any exchange, take your time to fully explore its functionality and thoroughly evaluate the drawbacks.
Here are the best crypto exchanges for Bitcoin day trading:. Many traders shared their experiences about their psychological struggles that have caused them losses. If you want to avoid quietly sabotaging your trading profits, adopt the right mindset:. Trading cryptocurrency for profit is a difficult craft in itself.
As you can see, future Bitcoin day traders have a lot of learning to do — from the technical aspect of this industry to controlling their emotions. Day trading may result in considerable profits as well as equally big losses. It is not for everyone. But if you take the trouble to research properly and utilize the right tools, such as Bitcoin day trading bot by 3commas, there is potential to make a great living. Some of the most popular crypto futures exchanges are:. Cryptocurrency options are also a type of derivatives contract.
Options enable its owner to purchase or sell a cryptocurrency for a specific price, at a specific date. Options are highly sophisticated bitcoin trading instruments that enable traders to limit their downside while leaving the upside open-ended. This derivatives product is an excellent tool to hedge a portfolio, but its inherent complexity does not make it a good fit for traders that are just getting started. The most popular crypto options exchanges are:.
Not all technical analysis TA concepts that work in traditional markets also work in cryptocurrency trading markets. This section covers some TA principles that also work in crypto.
The aim is to give you a handful of tools that help you to get started. The Ichimoku indicator aims to help traders find trends in the market price of an asset which can then be exploited through swing trading. The key concept that you need to understand is that if the coin is trading above the cloud and the current cloud is green, then the asset is in a bull trend.
If, on the other hand, the price is below the cloud and the current cloud is red, then the asset is in a bear trend. Just like Ichimoku clouds, moving averages are also used for identifying trends. They act by smoothing the price over your time period of choice, which makes it simple to detect market trends.
To leverage the true power of moving averages, traders combine at least 2 moving averages to get buy or sell signals. Major investors often use this as a buy signal. When opening a trade with this strategy, you would simply buy crypto assets that print a golden cross, and short assets that print a death cross. The reason being that some of the patterns that these candlesticks form can be used to predict future price development with reasonable probability. They usually signal the start of a strong trend in the direction of the engulfing candle.
If the candle engulfs more than just the previous candle for example the last 2 or even 3 candles , then the trend shift is expected to be stronger. Hammer and inverted hammer candles signal strong rejection of the market price from a key level. They are characterized by a long wick, and a small body. If a regular hammer candle occurs, that means that the price was rejected from the bottom and that a rally is likely to follow.
On the other hand, in an inverse hammer candle, the price was rejected from the top and a price drop is likely. As a general rule of thumb, the larger the wick in the hammer or inverted hammer candle, the stronger the trend shift will be. The final candlestick pattern that we cover is morning stars and evening stars. To draw a trend line, simply draw a line beneath or above the price that the price has tested on more than 2 occasions and has so far respected.
Once the line is drawn, you can clearly see if the market is trending up or down and trade accordingly. It works by quantifying the speed and change of market movements. Traders consider the RSI to be overbought when it is above 70 and oversold when it is below Hence, when it is above 70 a trader would start looking for shorts while if it is below 30 the trader would start looking for longs.
That said, again, RSI divergences should not be used as a standalone indicator for buy and sell signals and should ideally be used in combination with a trend following system like Ichimoku.
The risk of a particular cryptocurrency dropping to zero is very real. This has happened time and time again, and will certainly happen again in the future.
Cryptocurrencies should also always be part of a broader portfolio, that may include equities, metals, or bonds. Crypto traders can get hacked in a LOT of ways, but the most common ones are exchange account hacks. To reduce the risk of getting your cryptocurrency exchange account hacked, and your funds stolen, ALWAYS activate two-factor authentication on the account.
Please also make sure to use a unique and secure password. Unfortunately, even the trading venue itself that you are using, could turn against you. To reduce the risk of falling for a crypto exchange exit scam, always only stick to a reputable exchange and do NOT use an exchange to store your money. Cryptocurrencies are still a very new asset class, that is mostly unregulated in many jurisdictions around the world.
While this means that trading cryptocurrency is still VERY profitable, it is also extremely risky. Aside from sharp adverse market moves, digital currency traders also need to worry about exchange hacks, potential bitcoin network attacks, exit scams, and more. But you need to be aware of the risks.
To start conducting your first cryptocurrency trades, the next step is to create an account at one of the largest bitcoin exchanges. For that, you can check our guide comparing the best cryptocurrency exchanges for beginners.