Wallets are necessary for trading in cryptocurrency. So, if you are a first-time trader in cryptocurrency you will need to open a bitcoin wallet on Coinbase to get started.
All Bitcoin traders are searching keenly to find the best possible options for trading and investing crypto coins. Trading Review has cited that the financial market involves some amount of risks taking because prices do go down. It is possible therefore, that you can lose your capital while trading in cryptocurrency.
Cryptocurrency trading is possible in several ways; the traditional way of doing it, that is, directly by means of “limit orders” which means that there is a specific time and place to purchase and sell a cryptocurrency. Another way is by CFDs (Contract for Difference). These are contacts that are connected to the price of the specific currency being traded. When trading in a long Bitcoin CFD, you are purchasing a contract that is connected to the price of the crypto. If the price of the crypto coin increases, the value of the contract you own will also increase. You now can sell this at a profit. Basically, there are only two trading positions in the markets; long and short.
Long: When you’re trading an asset “long”, you are expecting that the value of the asset will increase. If you are the owner of a long Bitcoin position, you’ll make a profit if there’s an increase in the price of the coin.
Short: When you’re trading an asset “short”, you’re expecting the value of the crypto coin to decrease. Therefore, in owning a short position you will make a profit if the crypto’s value starts to drop. Basically, it’s called “borrowing” of positions. When you sell the crypto coin short, you are actually borrowing the coin and selling it, hoping that eventually, you’ll be able re-purchase it at a lower value. Thus, allowing you to make money. URL: https://icoholder.com/blog/tips-for-cryptocurrency-trading/
Major Exchanges for Bitcoin & Cryptocurrencies Trading
Bitcoin is very popular among day traders because of the availability of several different Bitcoin exchanges. There are factors which will determine how to find the best Bitcoin exchange, such as your country of birth, fees, preferred payment method, liquidity needs, and limits among others.
Let’s look at some of the major cryptocurrency exchanges available in the market:
- Coinbase: This is the largest crypto exchange in the world, and it offers multiple payment options. You can find it in the US, Canada and most European countries
- Binance: This is the second largest exchange. It has a 0.1% transaction low fee and offers trading in more than 130 different currencies.
- Bitmex: This is third-biggest exchange and trades only in BTC. This is perfect for short and margin trades.
- Bittrex: This US-based exchange was initiated by Microsoft ex-security professionals.
- Robinhood: This new exchange has 6 million users and requires no fees.
- OKEx: Based in Hon Kong, this exchange trades in more than 145 different cryptocurrencies.
- GDAX: This is a US- based exchange, that allows Ether, Bitcoin, Lite coin and other crypto coins.
- itBit: This operates a two-fold function; an international over-the-counter (OTC) desk and an international exchange platform.
- Coinmama: Allows for easy buying and selling process, with an extensive universal reach and accepts credit cards.
How to Day Trade Bitcoin
Long term traders benefit from holding their coin positions for prolonged time periods. However, day traders have found out that there are many reasons why the crypto coin is profitable.
Crypto trading exchange market is very volatile when compared to stock trading.
- Bitcoin trading occurs 24/ 7.
- The crypto allows for large trades with minimal overhead.
- This is the most liquid type of cryptocurrency.
- There are multiple trading opportunities developing within a 24-hour period.
You can master bitcoin trading but this will need a lot of practice. Its not hard to start the process because there are numerous exchanges offering “Demo Accounts”. These are fake accounts with fake money which allow you to trade and check out your approaches.
In every case of cryptocurrency trading, you will have to devise a strategy for how and when you are going to acquire and sell the cryptocurrency. Bear in mind that strategies can vary and no single strategy will help you make money continually. Developing a systematic unique strategy can result in huge profits in cryptocurrency trading.