Trade Bitcoin (BTC)

$0.000000

Before you get into trading, you should familiarize yourself with the subject matter as best as you can. The cryptocurrency functions in a rather complicated way. It is based on a technology called blockchain, a tech that is still young and evolving, so learning as much as you can about how it works is a massive plus. Subscribe to as many business and cryptocurrency news sites as you can and follow the cryptocurrency’s influencers on social media.

The leading minds in any field always have much to teach you. Another thing you should understand are the risks involved in cryptocurrency trading. As a young currency, Bitcoin (and all crypto coins) are rather volatile and prices can surge or plummet at the blink of an eye. Know this and never invest more than you’re prepared to lose. Of course, being a digital currency and mostly anonymous, there is also the inherent risk of the exchange itself. Make double and triple sure to only do business with reputable and trusted sources, as digital swindlers could get the better of you if you’re not careful. After you’re familiar with the subject matter and feel ready to dive in, you can mostly use the same principles that are used when trading at other kinds of financial or stock markets.

One way you can try to predict a price growth or reduction is by reading the moving averages. These are plotted on stock charts to try and smoothen out the volatility in order to point out the direction in which a stock may be trending. As the short-term moving averages cross over the long-term moving averages, a rapid movement in price can often be noted. Another useful tactic is setting limit orders. A limit order is a way to protect yourself from fluctuating prices by setting a threshold at which you’d like to buy/sell. When the stock reaches that limit, your order automatically actualizes.