How to start trading Bitcoins and be good at it? It’s practically impossible to be that good at your first trades, but you can any way give it a try, by adopting the right strategies and techniques. If you are interested in cryptocurrencies, then you are already familiar with some terms like mining, blockchain, transactions, digital wallets, trading, and exchanging. Since mining is the most expensive and slowest way to come to Bitcoins, a lot of people prefer to trade them through popular platforms, like bitcoinprime.io, and many other available online.
The trick is to recognize the right and most profitable moment, create your account (if you don’t have it already), and start trading. But, how to recognize the moment? The worst-case scenario is to buy Bitcoins when they are most expensive, and while their price rises rapidly. But recently, the price dropped under $30,000 – which is a huge drop – and while that trend lasts, you can think about buying BTCs. The rule is that the best moment to buy cryptocurrencies is when their price is going down, and the best moment to sell them is when their price is going up for more than three days.
So, to start trading, you need to open your account, but also choose your BTC wallet. Depending on the platform, you can get some freebies, to motivate you to start and check if you are capable to do that. As you get more experienced, you will be able to come up with some smart strategies, that will save you even at the riskiest moments.
There are some strategies you can use to trade, or you can come up with something on your own. But while we are here, let’s see how you can do these things, without huge risks and better chances for profit:
1. Reading and following the news
If there is something that is consistent through the years, that’s following the news. There are a lot of valuable things to learn about cryptocurrencies every day, and it’s not possible to do that if you don’t follow the news. And the news can be related to them, or to other goods that are traded in the world. Rich people can afford to invest millions in Bitcoins, but they won’t do that until they are sure the risk is at its smallest. Sometimes it may take up to a few weeks, or even months until they estimate the right moment. Of course, unpredictable things can always happen, and it’s too easy to miss the right moment, but don’t worry – even the best ones can do that.
2. Compare the charts of the cryptocurrencies
If you compare and overlay the charts of Bitcoin and Ethereum, you can see that they are similar, even though these currencies aren’t connected. The charts will help you see how things are going, and sometimes Ethereum can somehow predict Bitcoin’s ups and downs. But this method is just to make sure you are doing it right. There is no guarantee that it will work no matter what. The biggest differences are the charts are the critical moments, known as breakouts, when the price goes a lot bigger or a lot smaller in a short period. Sometimes, if Ethereum has a breakout, Bitcoin won’t have it, but you can predict that after that, the price will go up, and it’s the right time to buy BTCs, and wait for the right moment to sell them.
3. Recognize when do you need to stop
You can be active all the time, but there are moments when you need to stop and get back until the situation is clear again. Those are the moments when there are huge differences between yesterday’s and today’s price. It needs to take longer until the situation is predictable again. It seems like an easy strategy, but the truth is that it can exhaust you, especially if you want to act faster and you don’t have the patience to wait a lot. It’s crucial to be patient, especially if you bought Bitcoins for a low price, and there is a chance to make a huge profit from it.
4. Enhance your trading skills
You shouldn’t be focused only on one currency. There are a lot more, and you can choose at least one to go together with your strategies. If you diversify your trades, you are reducing the daily risks, or the chances to lose them all. Choose the trading platform smartly, so you can reduce the costs and fees. You can even watch the other people while they trade, so you can come up with some useful ideas. As we said, following the news is crucial, so you can stay informed all the time. Analyze the steps you take, and when you see that you are losing, you need to stop trading, get some rest, and then come up with some new strategy.
The crypto market is risky by itself, and almost all of the active traders are aware of it. They know that the prices aren’t stable, and the whole market is pretty volatile. That means they need to adjust their plans and strategies as the situation requires, which can be frustrating and pretty challenging.
But, if you have a good trading platform to hold on to, some flexible strategy, and people to support you (members of the crypto universe), things won’t be that bad for you. You only need to be precise, and of course, not getting very frustrated if things don’t come up as planned.
We live in a digital time, and we can expect that cryptocurrencies will become a big part of our life, sooner than we hope. Bitcoin is the major cryptocurrency, but almost every other has the same chance to become big in the world of fiat money, or even to replace them completely.
So, use the benefits this market is giving to you – if you are ready to do that. If you are afraid, then you probably need to wait a little more, and then start your unforgettable adventure in the crypto market.