Bitcoin has emerged as an entity that has witnessed ups and downs like no other entity before. When Satoshi Nakamoto launched this digital currency in 2009, it had not been assigned any value. From November 2021, when it touched its highest-ever price of over $ 68,000, to now, when the Bitcoin price hovers around $ 20,000, the Bitcoin journey has been smooth and predictable. Find Out More about invest in Bitcoin technology
Reasons for an Influx of First-Time Bitcoin Traders and Investors
Bitcoin took almost two years to reach the $1 value in 2011 and another six years to reach the $ 1,000 mark at the beginning of 2017. Its price shot up to almost $ 20,000 at the end of 2017. This was when governments, banks, global business leaders, and the common man took note of this entity in all seriousness. Bitcoin became a household name, and an increasing number of people started investing in cryptocurrency.
Level of Preparedness that all beginners must have
Since 2017, the number of Bitcoin traders has constantly been on the rise. However, Bitcoin trading is not based only on speculation. You must understand how Bitcoin, the blockchain, and other significant aspects of Bitcoin trading work. You must be aware of its high volatility and accordingly adopt a plan that focuses on minimizing risks and increasing your chances of making profits.
Bitcoin trader and a Bitcoin investor are two different categories. Traders use their coins to buy and sell frequently to earn quick profits. The main difference between a Bitcoin trader and an investor is that investors opt for long-term trading strategies such as HODL.
Acquaint Yourself with Crypto-Trading-Related Terminology
If you wish to start trading in Bitcoin, there are some terms that you must be familiar with.
- Market Order: You specify the number of coins you want to buy or sell to your exchange. This is mostly used by traders who want to buy or sell quickly. They get you those number of coins at the rates available at that point in time.
- Limit Order: If you are buying coins, the price will be below the limit order, while for selling, the limit will be above the limit order.
- Stop-Loss Order: It is an order that you place with your crypto exchange that will automatically close your bitcoin trade when it reaches a specific bitcoin price. This is especially effective in limiting the losses you may face.
- Makers and Takers: Makers create orders, and so they add to the order book. The makers are responsible for adding liquidity to the exchage, since adding order to the ledger also increases its size. Conversely, the takers take away orders from the order book. They decrease the size of the order book, thus reducing liquidity. For this reason, maker fees are usually lower than taker fees.
Finding the Best Trading Platform
Search for the best crypto exchange platform. Find the one which is easy to use and has the simpler process of trading. Once you have got the best option, you should begin the registration process to create an account.
Some qualifying parameters of a good trading platform:
- Easy to use
- Good rapport
- A strong development team
- Strong customer support
- Access to different payment mode
To start trading, you must transfer a specific sum of money to the exchange to buy your own coins. Before investing your money, however, you must look for a trustworthy crypto exchnage. The bitcoin profit bot is a reliable app that you may consider investing your money in to start crypto trading. They help you make informed decisions in Bitcoin trading, thus increasing your chances of making your trading experience profitable.
Bitcoin Trading Steps for Beginners
As mentioned above, you need a strong risk management plan to control your losses, including the trading strategy you select. There are several trading strategies, such as:
- Day trading
- Range trading
- Scalping
- High-frequency trading
- Dollar-cost averaging
- HOLD
You have the liberty to close trading at any point. It may be with a profit or to limit a loss. You must always define your stops and limits.
Conclusion
Be prepared is the mantra you must adopt when you begin Bitcoin trading. It helps secure your profits, cut your losses, and make your Bitcoin trading journey pleasant.
