Cryptocurrencies are a creation of digital society and they work 24/7. You can trade cryptocurrencies at any time of the week. Unlike stocks and commodities, the cryptocurrency market is not traded on a regulated exchange. Instead, cryptocurrencies can be traded every hour of the day on a growing number of “crypto” trading exchanges such as Coin-Bits.
There are two popular ways to start trading crypto. One way is to buy cryptocurrency on exchanges, like buying Bitcoin on an exchange like Coin-Bits.com. Here, you own the cryptocurrency yourself and you are probably waiting for the price to go up considerably so that you can sell it for profit.
Alternatively, you can trade a different contract (CFD) on a particular cryptocurrency. A CFD is a derivative where a broker agrees to pay a trader the difference in value of an underlying security between two dates; the opening and closing dates of the contract. You can either hold a long position (speculating that the price will go up) or a short position (speculating that the price will go down).
Steps to trading bitcoin
- Open an account
To trade bitcoins, you will first need a Coin-Bits trading account. The setup only takes a few minutes and you can you can start trading as soon as you have added funds.
- Build a trading plan
After opening a Coin-Bits account, you need to choose a trading strategy, but if you’re new to the markets, you may also want to consider a trading plan. A trading plan can help you make objective decisions even when the stakes are high, so you don’t leave trades open too long – or close them too early.
Here are a few tips for crafting a plan:
- Describe what you want to achieve from your trading, broken down into short and long term goals
- Decide on your acceptable risk for each transaction, as well as the amount you are willing to risk overall
- Choose a risk / reward ratio so you know how much potential profit you need to justify your potential loss
- Choose the markets you want to trade. Do you want to start with just bitcoin, or try a few others?
- Do your research
Before you start trading, you need to make sure you are aware of the latest news on bitcoin, in order to better understand what will follow for the price of cryptocurrency.
When it comes to understanding the behavior of bitcoin, graphics can also be a valuable tool. Past data can help you understand how the market is evolving, while comparing time frames can provide a more accurate look at emerging trends and patterns.
- Place a trade
Once you have settled your position, you will need to trade using our web currency trading platform.
You enter the amount you want to bet on your exchange in the offer ticket. You can also define your closing conditions: define a stop to close your position when the market moves against you by a certain amount, or a limit for the time when it moves in your favor. Stops and limits are essential for good risk management.
If you expect an increase in the value of bitcoin, then you will “buy” from the market. If you think it will fall, you will “sell”.
In the end, all you need to start trading crypto is a cryptocurrency wallet and a cryptocurrency exchange. Be aware that there are countless other options for wallets and trading, so choose a company with a good reputation like Coin-Bits.co and start trading crypto.