An amateur’s guide to Bitcoin trading

Whether you are an expert trader or just an amateur, you must have heard about bitcoin. Bitcoin is a cryptocurrency that has gained uncountable popularity and an unimaginable fan following. Being one of the most unique and scalable financial vehicles, bitcoin trading is still growing at an exponential rate. This virtual currency has assisted a large crowd of people across the globe to gain success and wealth through Bitcoin trading.

If you are an amateur looking to delve into these opportunist waters of bitcoin trading, here is everything you need to know.

Bitcoin trading is not much different than stock trading and you can just as easily purchase and sell them. There are three different types of trading that you can look into and choose from. Day trading avails multiple trading throughout the day to ensure the exploitation of short-term price movements for optimum profit. This type of trading goes on throughout the day and closes at the end of the day. Scalping is another similar day trading method that avails trading for a substantial profit on smaller price changes. It offers short-term trading on limited risks and is perfect for bitcoin trade enthusiast who wants to deal with hundreds of trades in a day. The last one is swing trading which is a long-term trade based on the larger picture. This trade stays open for weeks and months, navigating the price movements until and unless they reach the desired rate.

To start your very own bitcoin trading process, you will need a bitcoin exchange. A bitcoin exchange is an online website that will connect you with the right buyer or seller automatically, according to your needs. While a bitcoin exchange will charge a higher fee, they also offer numerous advantages features and protective services. The trading process can be a bit of a security hazard if the necessary precautions are not implemented. You might also need to utilize an online wallet to store all your bitcoins. You can store it on your computer with a backup but it is much safer to keep it in an online wallet. 

Trading with cryptocurrencies has gained such popularity mainly because of the numerous benefits including decentralized valuation, high leverage, lack of transaction cost, low cost of trading, and so much more. But all these advantages depend on an effective and efficient bitcoin trade process. You must learn to read the price graphs and understand the resistance and support levels to start your trading process.