Bitcoin is a digital currency that has taken all over the world by storm. It’s created or mined when the individuals solve complex math puzzles online. These bitcoins are stored in a digital wallet that either exist on the cloud or the computer of the user.
How to Trade BTC?
There are two main ways to trade in BTC:
Buy the cryptocurrency itself hoping to sell it for a profit, or speculate on its value without owning the token. The latter is the working way for CFDs.
A CFD allows you to trade a contract based on prices in the hidden market. A CFD is a leveraged product which means you can deposit a small amount initially and make the most of the exposure of a larger position.
1. Open an Account – Looking to trade CFDs? What you’ll need is an IG trading account. It does not take that long for the account to get set up. The moment you’re done adding funds, you can grab your first position.
Don’t you forget unlike if you were to purchase and sell bitcoin, you would not need an account with a bitcoin exchange? Why? This is because you trade on prices which are offered by IG that we at cryptocointrade will acquire from multiple exchanges on your behalf.
2. Perform Your Research – Before making a final call to commence trading, it’s important for you to make sure that you’re aware of the latest bitcoin news. Doing so will help you understand what’s next for the price of bitcoin.
You should be able to recognize all those factors that affect bitcoin. As bitcoin is a decentralized currency, it does not have restrictions from economic and political concerns which affect traditional currencies. Know that anyone of these factors could have a sudden and serious impact on its price. So you will have to learn to handle the risks.
When it comes to understanding the behavior of Bitcoin, using charts can prove to be a great tool. When you gather past data it can help you make sense of how the market is moving.
3. Apply Your Plan of Action – Opened your position? You now need to manage the same with a trading plan of action. There are several various trading strategies you can carry out. They will work for traders in a variety of ways. Deciding on which one is feasible for you will be important not only to your long but also short-term trading success.
4. Place a Trade – Once you’ve fully settled on your position, you can consider the ideas of placing a trade using best bitcoin trading platform available in market.
Expecting bitcoin to rise in value? You’ll buy the market. If you think it’ll not rise in value, sell the market.
5. Close Your Position – Have you hit your profit target? Maybe you have. Or, maybe you want to cut your losses. Whatever the reason, you will need to close out your position.
Bitcoin (BTC) is exploding….it really is! Last year this digital currency, also known as cryptocurrency grew from under US$1,000/BTC to over US$10,000/BTC. With such an immense growth an explosion was bound to happen in market trading, which helped the currency keep expanding.