Bitcoin is a well-known cryptocurrency that is a digitalised electronic currency. Bitcoin is traded globally by many peoples to transfer money and trading without involving a bank. Here are few tips for beginners to start trading using Bitcoin –
Start with small
Cryptocurrency like bitcoin is a volatile method of earning. Though it takes less time to be profitable there is also risk. As a beginner, you should start investing with a small amount to avoid risk factors. Prefer sure and small profit sources over investing a large altogether. Make sure you trade regularly.
Study the market and decide
Before jumping into trading in bitcoin, first, do your homework which is very important. Study the current market status and how bitcoin works. Read charts and understand the strategies. Notice experienced traders’ strategy before you invest. Also, decide the type of trading you want. You can invest in small parts daily ( scalpers ) or you can wrap up in one day ( day trades ), else you can trade with deep analysis ( swing traders ) or long term profit ( passive trades ) schemes.
Set your profit target and stop-loss level
Before you open a position, you must set a target of profits. Most beginners make mistakes by being greedy. You should not rush for profits at the start. Trading and market activity analysis is the important thing to acquire as knowledge. Set a moderate target for what you want to achieve in due time. This strategy is safer and helps you to reduce trading risk. Suppose you invested an amount of money, make a stop-loss level to avoid loss. Don’t greed and risk much which you cannot afford. Setting a stop-loss level keeps you safe with no loss or less profit. Check here to see this page for best bitcoin gambling software.
A balance between leverage and caution
As bitcoin trading is an extremely volatile platform of trading, beginners should not take a large leap. Because leverage can bring you huge profit or also can lead you to a big loss. It is an in-between stage of risk and reward. If you are ready and mentally prepared for taking this risk, you can leverage it in trading bitcoin. There will be many old experienced traders who wait for beginners to make a small mistake and they gain profit from it. Here somebody loses, somebody wins. You have to adopt the deep knowledge of this changeable platform to count yourself in winning ones.
Using of Bitcoin
Many people prefer to hold bitcoin after buying it to enjoy more profit in future utilizing it. Whereas others do short time volatility or overtrading which can lead to loss and you have to learn risk management. Another strategy is to invest when bitcoin’s market cap is higher. Usually, people tend to buy coins while the price is low but it’s not a good idea to focus on the highest market cap of a coin.
Set a safe wallet
While dealing with cryptocurrencies you have to possess a wallet. To collect the profit you get from bitcoin trading. Make sure that you choose a trustable, secure and safe wallet according to your flexibility. It can be a cold or hot wallet which means offline and online wallet respectively. Though most people prefer a cold wallet to be safer. You can transfer your profit to your cold wallet as well.
Be aware of fraud
As bitcoin is an unpredictable trading platform there are many people to mislead you. Learn from many but conclude with your own decision. Be careful while exchanging from wallets because there are many fraudulent exchanges, wallets, emails similar to the original platform and websites to befool you. Phishing scams, Ponzi schemes, malware are some common issues you may face and have to be aware of.
Dealing FOMO
FOMO means Fear of missing out. If you find Bitcoin is trading high, then you have missed the crucial time of trading. Though it doesn’t always follow the rule of buying low and selling high. You have to deal with FOMO when someone else profits and you cannot.
Diversify
While you invest in Bitcoin, you may get disappointed sometimes. Rather if you are a beginner, you can trade in other cryptocurrencies so that if you lose in bitcoin it can balance your profit from other cryptocurrencies.
Final thought
Though bitcoin is an unpredictable platform it can bring you success. For beginners, it’s very important to grab the knowledge and then invest more. You must start investing with small amounts and apply precautions and risk management while trading.
