What do you need to start bitcoin trading

The cost of the cryptocurrency is continuously changing. This allows you to earn on the fluctuations (growth, fall) of the course. The question "How to start bitcoin trading" is relevant in a unique way. After all, this “currency” is very volatile. If you get into the trend, earnings will be huge. The risks are also significant, but they are easily compensated with a competitive attitude to the purchase/sale process.

How to protect investments and not be distracted from trade

Before you start trading on the cryptocurrency exchange, it is recommended to take care of the safety of your money. If access to bank accounts is restored by a passport with banks, this is not provided for with cryptocurrency. The loss of a wallet is equivalent to the complete loss of all the money that was on it. The protection procedure is similar to other online resources, but if there is no particular need to adhere to the rules strictly, they are mandatory here.

Ways to enhance the security of personal finances in a BTC wallet:

  • set complex passwords with numbers, punctuation, uppercase letters;
  • do not store access codes on a computer (it is better to write them on paper and hide them);
  • use 2FA authentication (two-factor);
  • complete verification of exchanges (photo with passport, etc.).

If everything is done correctly, how to start bitcoin trading on the exchange will be a pleasure. Earnings on tradе bitcoin are not enough to get. It must be preserved and increased. And the protection of an online wallet account is in the first place here.

How to prepare for Bitcoin trading

To trade bitcoin immediately began to make a profit, it is recommended that at least the first month to work on a demo account. This will allow you to practice life skills in opening deals and managing their status. And along the way, compare the real change in the course with news, events on the world market.

With cryptocurrency, it is essential to understand whether the project will close soon. According to forecasts, bitcoin cash will come to this line by 2140, i.e., you can still invest in them. In general, many trends will need to be studied:

  • maximum and minimum peaks;
  • news field around selected digital coins;
  • calendar of upcoming economic events.

Experienced traders never enter the market close to the “extreme” trend values. If the current rate is close to the maximum, then you can not buy bitcoin cash. And vice versa - at the bottom of a downtrend, they do not sell it. It is more profitable to wait for either a breakdown of the maximum/minimum or a price reversal. When the value level is inside the trend, how to start bitcoin trading can be carried out without restrictions. Watching the news often allows you to predict the growth/fall of the value of assets. Useful will be the use of an economic calendar. It indicates the most significant events - the publication of economic indicators, statistics on the population. Although the cryptocurrency is not directly connected with any country, trading bitcoin a pair with the US dollar forces one to take into account the effect of this currency on BTC.

How to trade on a cryptocurrency exchange

To carry out trading operations with cryptocurrency, first of all, you should decide on the preferred trading pair and choose the optimal entry point to the market, that is, buy a digital asset at the best price. To do this, the trader can independently monitor the market and make an instant purchase transaction or place a limit order for the purchase price. The cost of the law, the trader, indicates his discretion based on what he sees the price in this bitcoin trading pair in the future.

After the digital asset is acquired, you can act in one of the following ways:

  • place a limit order for sale, indicating a higher cost;
  • keep cryptocurrency on the exchange account until it grows in value and sells it after;
  • withdraw the purchased currency to an over-the-counter account and place it in cold storage.

In each of the cases, the trader needs to wait until the current market value of the cryptocurrency exceeds its price at the time of purchase. Only in this case will it be possible to profit from the transaction.

How to learn to trade cryptocurrency

Many, seeing huge profits, forget about all the minuses, the risks of trading and stubbornly seek information on how to start making cryptocurrency trading for a living. On the Internet, many professional traders post various materials on how to learn to trade cryptocurrency and how to conduct correct and successful trading on cryptocurrency exchanges, analyzing different situations using your example.

However, for many, it can be difficult to immediately look into this area, since bitcoin trading requires a lot of fundamental knowledge and the ability to analyze information. What is the best place to start for a beginner to become a successful trader in the future and trade cryptocurrency? How much money can I start this type of earnings? What tools are needed for this?

All these questions will be answered by this informative article, which gives the necessary knowledge and skills to start a trader's career and gradually achieve confident earnings on cryptocurrency trading.

All existing exchanges can conditionally be divided into:

  • exchanges that support trading only between cryptocurrency pairs;
  • exchanges that allow you to carry out operations with fiat currencies.

Cryptocurrency exchanges provide participants with a convenient platform where they can trade cryptocurrencies, ensure the safety of traders, and provide all the necessary tools for trading.

What is cryptocurrency exchange trading

During bitcoin trading, all traders try to get profit from the transaction. Often, when purchasing digital coins, they wish to sell them at the best price later. At its core, playing on a cryptocurrency exchange is not much different from other types of trading. Making a profit from trading with digital assets will not be difficult for those who are already familiar with the principles of trading other financial assets or ordinary money on Forex.

How much to start cryptocurrency trading

One of the advantages of trading is that you do not need to invest significant investments in starting making money in this area. For a beginner, just some 100-200 dollars will be enough to buy some cryptocurrency (for example, you can purchase Bitcoin or Ether), put it on the stock exchange and start speculating with the help of particular strategies.

A beginner should start the practice with just small invested amounts since at first there is a huge chance to lose all your finances. After all, a novice trader does not yet have the experience and practice to conclude the most profitable transactions. Specific errors occur when buying or selling cryptocurrencies, and the trader loses capital.

Therefore, it is worthwhile to understand in practice how to start bitcoin trading and gain invaluable experience using small amounts of money invested, which will not be scary to lose in case of failure. Try various trading strategies from the Internet, practice using stop orders on exchanges, etc. And after you get specific skills and a little experience, you can start investing more significant amounts and make more profitable transactions.

Orders for sale and purchase

An order is the primary tool of a trader, with the help of which he makes a transaction, entering the parameters of the transaction into it. Orders can be divided into two types:

  • passive - the value of the asset in them differs significantly from the current market rate;
  • aggressive - intended for trading at the current market rate.

The lion's share of movements on the charts is formed precisely by aggressive orders. They are also called instant because they close as quickly as possible. Passive rules represent a precise forecast of the trader and close when the market matches.

All orders for the sale and purchase of an asset within one trading platform form a so-called glass of rules. This is a list of all trades placed by traders for the selected trading pair. A glass of orders reflects the liquidity of an asset, allows you to determine the mood of the market.

Technical and fundamental analysis in Bitcoin trading

Externally, judging by the schedule in the MetaTrader 4 terminal program, how to start bitcoin trading is similar to working with currency pairs. Candles, trends, lows, and highs are formed. But the situation with trade bitcoin/altcoins is somewhat different. The cryptocurrency market has no such history as the US dollar or the British pound. Plus, digital coins are not tied to any country, so events in individual states do not directly affect the exchange rate.

The basic tenets of technical analysis will have to be applied with individual reservations:

  • The market price takes everything into account - the widespread excitement around the sharply increased exchange rate is more influencing the value of trade Bitcoin, so you can’t seriously count on this factor;
  • The market is subject to trends - this rule works with cryptocurrency typically. If the pattern has begun, the price changes stepwise, with correction;
  • History repeats itself - the growth dynamics of the Bitcoin exchange rate is so high that there are no price repeats yet.

Fundamental analysis, as it is used to assess trends in currency pairs like EUR USD, is practically not applied to cryptocurrency. But the question " How to start bitcoin trading " can still be answered. Experienced traders are closely following the news in the social networks and thematic forums. It is there that you can find an informational reason for the fall or growth of the course. For example, news about breaking another exchange significantly affects the value of cryptocurrency. Such events undermine confidence in the trade bitcoin system and are capable of causing a depreciation for a while. What tools will help to make a profit? The MetaTrader 4 program has more than 20 built-in indicators that allow you to reflect the current market trends visually. They work based on technical data from previous periods, which can be called a “show of history.” If a trader has just begun to think about how to trade cryptocurrency correctly, it is recommended to focus on the study of indicators. They will help you quickly understand the current trend and your plan on how to start bitcoin trading.

The software allows you to automate trading operations. To do this, use scripts and robots (advisers). If a trader uses a standard strategy, routine actions such as setting a closing price for profit/loss and opening new orders are transferred to the program. Sometimes newcomers use other people's developments, and while they understand how to trade bitcoin on the exchange, the software does it for them.

With experience, indicators and advisers may be unnecessary, but the MetaTrader 4 drawing functions are used anyway. They mark trends, key levels, outline technical analysis figures. Sometimes they trade without their use, only based on candles formed from their combinations. At first, it will be useful to try out all the available options.

Trend and correction trading

Trade Bitcoin are assets with high volatility. This imposes restrictions on trading bitcoin methods. But in the arsenal of traders, there are enough ways to make a profit on such aggressive assets. Mostly trading bitcoin on the exchange goes in the direction of a trend that has not changed over the past year (it is holding upward). But many experts think that it is safer to make money on kickbacks and price corrections after the next surge.

Trend and correction can be determined in several ways:

  • use indicators;
  • manually draw levels and monitor breakdowns of active areas (on them the price most often stops, a trend reversal occurs);
  • use automatic advisers that signal the beginning of a new trend.

Which tool to choose and how to start bitcoin trading depends on the preferences of the trader.

Many initially use an excessive number of indicators, often duplicating each other in the displayed information. Gradually, the minimum set remains, the most convenient to apply for a particular trader.

People will also be able to appreciate the benefits of cryptocurrency trading with Maxitrade

The most popular automated cryptocurrency trading service. These services every day is becoming more and more, but here we give the most efficient and time-tested. In the fastgrowing world of crypto-conversions, it would be a pity to limit your investments to one. That is why we offer you the opportunity to transfer and trade bitcoin the most popular currencies on the market.

  • Superior service for the automation of trading strategies on cryptocurrency exchanges. One of the most famous, expensive, and challenging to explore.
  • High level of bank security.
  • Diversify your portfolio.
  • Transfers between external wallets and your account.
  • The company's privacy policy protects the interests and data of each client.

Conclusion and recommendation

Becoming a successful trader is a tough task, which requires a lot of knowledge and a lot of practice. Here you need to have both deductive skills and iron endurance. Without all this set of skills and the right psychology, engaging in effective cryptocurrency trading is simply unrealistic.

However, for a beginner, all paths are now open. After all, all the initial steps of trading were described in this article and right now, you can already how to start bitcoin trading, using small amounts to build up trading experience. It is your own experience in cryptocurrency trading that will show how predisposed you are to this type of earnings and whether it is suitable for you.

It is worth recalling again. To start trading immediately with a large amount is a pretty bad idea. Since you can lose everything already on the first day of trading. Remember, the cryptocurrency market is unpredictable and highly volatile. It is simply impossible to predict with accuracy 100% what will happen on the market even in a few minutes.

That is why it is worth learning the basics of trading, understanding how to trade cryptocurrency, continuing to study material about it every day, and becoming more and more involved in trading every day. And after a while, you can slowly increase the invested amount, so that eventually, the profit from each transaction also increases. Good luck to everyone in this complicated matter!

Something went wrong