Bitcoin Trading can be very rewarding when you apply a good strategy and use a proper money management. Every day trader love volatility and Bitcoin has plenty of it! But remember, where there is high volatility there’s high risk. Above all, if you are new to trading, make sure that you are able to make a consistent profit with a small investment before going big. Bitcoin trading with a demo account is a good idea but try to trade with real money as soon as possible.
Bitcoin is a unique instrument to trade. The original crypto-currency is making head turns after gaining so much value in the last few months. Many are getting drawn to Bitcoin trading trying to get a piece of the pie and while buying Bitcoin and holding them for years is certainly a good investment, most of the profits will be generated by the best Bitcoin traders.
Bitcoin technical analysis
We are trading using our own Bitcoin technical analysis and we suggest you do the same. To become one of the best Bitcoin traders, you will need to get good at reading price action. Use your favorite trading platform and use the tools provided to help you find areas where you expect buyers and sellers are waiting to enter the market.
Bitcoin trading: So simple yet difficult.
If you didn’t know, most traders lose money. Only a small part of those trying to beat the market manage to do so for a long period of time. To become profitable trading Bitcoin or any instrument, you simply need to find a small edge that will outset trading costs (spread, commission etc). We’ve been trading for many years and can honestly say that there’s tons of way to do it.
The difficulty comes after we enter in a position. Our mind is designed in a way that will get us to try to avoid closing trades at a loss. We will do all the stupid newbie mistakes like moving our stop loss and adding to our position. More info on that here. Another mistake losing trader makes is to take too big positions. You need to understand that every time you increase your position size, you decrease your edge. Make sure you respect a position size that will let you account equity move up and down while eliminating the risk of a margin call. If you wonder if you are better to buy Bitcoin and keep them for many years or to trade Bitcoin, make sure to read the Bitcoin investment strategy page.