This strategy is ideal for the ones who are looking to make profit from Bitcoin’s short-term market movements which helps you to make the most of daily volatility in Bitcoin’s price. Thus, there is no avoiding overnight funding charges on the position. So, here the trader does not have any Bitcoin market exposure overnight. It involves traders entering and exiting positions within the same day. Bitcoin Trading Strategiesīitcoin Day Trading: Bitcoin day trading is a most common kind of trading strategy, which is also known as intraday trading. Broadly, there are two kinds of digital wallet: software and hardware wallet with their own pros and cons. You can also purchase a specific Bitcoin wallet, if you are buying BTC and planning to hold them for little more than a short-term period. Store Your Bitcoins Safely in Digital Wallets: If you are an active Bitcoin trader, then you might need to store BTC on the exchange in order to access them. ![]() This automated process helps to provide you with significant returns based on your trading objectives. As to start with you can also take help of Bitcoin trading bots which are available at most of the cryptocurrency exchanges. Start the Process of Trading In Bitcoin: After buying a considerable amount of Bitcoin, now you can start trading in Bitcoin as per your chosen trading strategy. Pick Bitcoin To Invest In: After putting money into your account, you can select the quantity of Bitcoin that you wish to buy to trade further. Put Money into Your Account: Once you have signed up with a crypto exchange, then as a next step you need to fund your account through bank deposits, peer to peer (P2P) and via other wire transfers. Read our detailed article to “ Best Cryptocurrency Exchanges In India” for more detailed information on crypto exchanges along with their pros and cons. Just provide personal information and fulfill Know Your Customer (KYC) requirements. All these exchanges have an easy user interface and a wide range of coins including Bitcoin. You can open an account with Bitcoin friendly exchanges such as CoinDCX, WazirX, Zebpay, CoinSwitch Kuber and many others. Sign-up For A Cryptocurrency Exchange: Opening a Bitcoin trading account is a quick and easy process. Step-By-Step Guide On How To Start Bitcoin Trading It is also critical to know the associated risks and the regulatory laws which might affect one’s jurisdiction and decisions. In order to start trading in Bitcoin, one first needs to be well-equipped with adequate information and should have a familiarity of the subject. Trading via CFDs facilitates traders to trade as per the direction of market movement over the very short-term period and allows you to bet on Bitcoin price changes without actually owning any underlying coins.ĬFDs have become a popular way to trade in Bitcoin as they offer greater flexibility and with the optimum use of leverage one can take short as well as long positions in Bitcoin. ![]() Another way of trading in Bitcoin is by means of derivative financial instruments, such as Contracts for Difference (CFDs). The first way is to indulge in buying and selling of BTC on a cryptocurrency exchange. In short, Bitcoin can be traded in many ways. What Is Bitcoin Trading?īitcoin trading refers to the act of buying and selling Bitcoin via an exchange platform. Here’s a detailed guide which will explain the meaning of Bitcoin trading, how it works, and what are the factors which influence Bitcoin’s price the most and the role of technical and fundamental analysis in forming a comprehensive trading strategy. Thus, it is important for people who trade in BTC to have sufficient knowledge of how Bitcoin works so they can safely navigate the Bitcoin moves and make the most out of it via trading cautiously and vigilantly. Bitcoin (BTC) is the first and most valuable cryptocurrency in the world which is also known as a highly volatile asset, the price of which can fluctuate from one extreme value to another. With rising interest in Bitcoin amid stringent regulatory glare and mixed media coverage, trading in this particular currency has become an enticing side gig which helps to make an extra income.
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