Bitcoin trading: peculiarities of cryptocurrency exchange trading
The introduction of Bitcoin awoke many enthusiasts who are ready to invest funds in promising projects. It inevitably led to the establishment of cryptocurrency exchanges and appearance of a profession of a Bitcoin Trader.
Bitcoin Trader is a player on the digital currencies market who makes deals in order to gain profit.
Unlike fiat, Bitcoin is not controlled. Instead, users across the globe support and manage it. Some developers strive to produce more sophisticated software but they cannot change the program protocol of the digital currency.
Why is Bitcoin trading profitable and perspective?
- You can trade Bitcoin 24/7 since there aren’t any official exchanges with precise working hours and days off.
- Bitcoin is a global phenomenon. It doesn’t depend on economics or politics of some country as well as isn’t a national currency.
- Bitcoin has high volatility. Constant fluctuations of the price allow to earn on its trading.
Due to the rocketing popularity of cryptocurrency and lots of related talks of the global media, more and more people become interested in such deals and making big money. Unfortunately, traders happen to suffer losses not sticking to the basic rules of a pretty risky exchange game.
Several rules for safe Bitcoin trading:
- Do not invest all funds in cryptocurrency. One cannot be a confident and stable player living on a shoestring budget.
- Do not fix the profit at an above-average level in order to wait for the cryptocurrency sharp increase. Otherwise, Bitcoin price can plummet so that you can lose a chance to sell it.
- Do not play at short distances when the traded value is negligible. Low traded value means that only bots are involved in the game.
- Take notes of your trading strategies.
- Be skeptical about the information given on the exchange forum or chat. The majority of predictions are based on individual hopes and expectations.
Traders should draw their attention to the following nuances in order to choose a cryptocurrency exchange:
- Trading volume on the exchange. It is necessary to keep in mind that many deals are a gateway to various actions. A trader can buy cheap cryptocurrency and sell it at much higher price.
- The possibility of margin trading. Be aware of increased risks.
- Commission. You will have to find an exchange where a commission for making deals is not high.