Are you someone who is thinking of trading Bitcoins, Altcoins, Ethereum, or any other cryptocurrency? If yes, you need to learn everything about the trade before taking the plunge. While it can be said without a doubt that 2017 was the year of cryptocurrencies, since then, the value of cryptocurrencies has been increasing like never before. It was in 2017 that Bitcoins grew from $1000 to more than $10,000 and with such growth, there has been an explosion in the trading market which in turn helps the currency to keep increasing. For cryptocurrency beginners, you need to get a feel of the movements of the market. Due to low fees, transaction speed, increase in value, and several other factors, people from all over the globe make Bitcoin one of the main exchange modes. What are the 4 tips that you should take into account for trading Bitcoin?
Fluency in technical analysis is needed As compared to other currencies or asset classes, the nature of Bitcoin makes this cryptocurrency an exception. There isn’t any governing body or central bank that influences its valuation. The pricing models of Bitcoin are highly speculative and it even ignore most of the conventional financial theories. Hence it is an absolute necessity that you have fluency in technical analysis before entering the Bitcoin trading market.
Follow a sustainable pace Trading is not a sprint, it is a marathon. One of the tasks for beginners who are facing the Bitcoin market is to establish a schedule that can bear the brunt of the market fluctuations over a longer period. If you make the mistake of investing extraordinarily long hours every day, this will harm your performance and will also lead to quick burnout. No one can trade effectively 24X7. Hence, you should follow a manageable schedule where you should only outline and focus on the optimal trades.
Be updated on the latest news on Bitcoins As mentioned above, Bitcoin is unique and any specific news item won’t have any predictable effect on the markets. There aren’t any WASDE, scheduled GDP releases, or EIA inventory reports to enhance participation. Nevertheless, the unanticipated news items can be able to influence the price of Bitcoin greatly. So, whenever you think of trading Bitcoins, make sure you have easy access to live news feeds.
Use wise leverage
Though it is a cliché leverage is indeed nothing but a double-edged sword. Leverage enhances your gains but also magnifies the losses. Whenever there is too much leverage, this can lead to reckless
finance management which can in turn blow off your trading account. On the other hand, too little leverage can bar your performance as premium trades might not perform to their capabilities. So, if you’re a Bitcoin trader, you need to manage leverage effectively. Bitcoin futures products can let you manage leverage as they give an extra emphasis on accurate leveraging. Mistakes are always costly. Safety rules are written with blood. Though the statement sounds familiar to the soldiers around, losing your costly Bitcoins by committing mistakes is certainly not something that you want.
