Bitcoin today has become a household name in digital trading. Since its humble beginning as a barely perfect digital currency, it has transformed into a thriving $205 Billion global sensation.
But what exactly is Bitcoin, or BTC? And can you actually ‘make a killing’ from trading it? Let’s dive deeper into these questions.
Bitcoin: Decoding The Basics
Bitcoin is based on blockchain technology that enables decentralization. Any decentralized system, by definition, precludes the interference of any government or central authority. It also removes transaction limits, reduces charges and breaks down international barriers.
How To Make A Profit Trading Bitcoin
You can either directly buy and sell BTC or you can invest in CFDs (Contracts for Difference.) The latter is considered to be more convenient as you can get leverage for a bigger asset by depositing a small amount.
Getting Started With Bitcoin (CFD Trading)
Step #1: Register In Any Of The Recognised Exchanges: Create your Bitcoin account and register yourself in any of the reputed exchanges like Coinbase, Binance, or Kraken.
Step #2: Strategize A Trading Plan: Creating a trading plan is essential for systematically making gains in the market. Jot down your specific goals, then assess the investment risks and arrive at the ideal capital needed to achieve those goals.
Step #3: Study Market Trends: Trends tell a story. By getting a good grasp of the nature of the market, you’ll be making wiser investment choices.
Although it’s much easier to get started with CFD trading, it can also possess a greater risk. Make sure that you start slow, and don’t act impulsively based on apparent trends.
Some Popular Bitcoin Trading Strategies
Day Trading: In this, the trade is closed out at the end of the trading day. This is good for making profitable short-term investments.
Swing Trading: You can capitalize on a trend while it’s gaining momentum and withdraw once it plummets. This is a great approach for trading with reduced risk, but timing is everything.
Scalping: You can make frequent intraday-trades based on minor-price fluctuations. This is ideal for making small, consistent profits.
Automated Trading: You can also automate the trading process if you want to just be a passive trader.
If you feel that you need expert assistance in trading Bitcoin, Marketscap.com is the right platform for you. Not only does it allow you to trade Bitcoin but also other 800+ cryptocurrencies. The portal provides you with the latest market analytics and news, and 24/7 professional support.