The trading of Bitcoin and other
cryptocurrencies is at its peak since the beginning of this year with a huge
daily trading volume, as the market value of the cryptocurrency market at the
end of March 2021 reached more than 2.1 trillion US dollars, which shows the
extent of interest from Investors in this market and their desire to benefit
from it as much as possible.
What is bitcoin trading?
Like other different financial markets, the
bitcoin and cryptocurrency trading market operates on the basis of buying and
selling digital currencies, just like the forex market, stocks, and others.
For example, you can trade on the BTC/USD pair
by placing a buy order, for example at a certain price, and based on your
trading strategy, you close the position after some minutes or hours at a
certain profit margin that you specified in advance.
It is also for you as a cryptocurrency investor
that you can take a sell order when you see according to your trading strategy
that the price of a particular cryptocurrency will go down.
To sum up, the cryptocurrency trading market is
just like the foreign exchange market known as the forex.
Advantages of cryptocurrency trading
Let's get acquainted with the most important
advantages of learning how to trade Bitcoin and cryptocurrencies in general.
Short term & long term trading
In this article we mainly focus on short-term
beginner bitcoin trading, but it is also important to note that the
cryptocurrency market is on its way to expanding and accommodating many, many
companies and individual investors.
So you should consider the idea of long-term
investment in Bitcoin and other highly valued cryptocurrencies.
Leverage
When you use an internationally licensed CFD
broker for trading Bitcoin and other cryptocurrencies, you will have the
ability to apply “leverage” to your Bitcoin accounts, this means that you can
trade with more money than you have in your account.
But you have to take into account that this
exposes you to great risks and the loss of your capital, so you must adopt a
solid risk management strategy and work to implement it without any delay.
Trade 24/7
You are here dealing with a market that operates
on a daily basis and around the clock, the cryptocurrency trading market gives
you the freedom to trade at any time you want, and this is what makes its
market value rise and the volume of daily trading increases, so you can open
and close deals at any time.
How to buy and sell bitcoin
Trading Bitcoin CFDs against buying and selling
Bitcoin is as follows:
Buying and Selling Bitcoin
Transactions are based on finding someone who
wants to buy or sell at the price you want in an exchange.
This is only useful when the asset is going
down, as it can be bought at a lower price.
Little or no risk management other than a
trading strategy defined by the trader.
Third party solutions, some of which require
payment or subscriptions.
It can involve the process of finding the best
bitcoin exchange and the type of bitcoin wallet you want.
Although some exchanges are reliable and
credible, many of them are not regulated, which puts clients at unnecessary
risk.
As we have seen in the news, bitcoin exchanges
are also vulnerable to hacking as customers can lose all their assets.
Trading bitcoin online
- Buy and sell at any time.
- Take advantage of both rising (going long) or declining (going short, or selling bitcoin with the expectation that it will go down).
- Proprietary risk management tools, negative balance protection, no slippage and fixed spreads.
- Deep analytical data using the local platform or MT4, one of the most popular free trading platforms in the world.
- Register for an account and then choose from our 200+ tools including Bitcoin.
- No need for a bitcoin wallet or subscription to a bitcoin exchange.
- Trading Bitcoin CFDs gives you access to profits in a short period of time.
Bitcoin trading risks
Although there are many benefits of online
cryptocurrency trading, you also need to consider the potential risks.
The market is very volatile
The crypto trading market is very volatile, as
you can watch a cryptocurrency rise by a large percentage during the day and on
the other hand, you can decrease by a very large percentage at the end of the
day, the rise and fall rates may reach more than 50% of its value.
As such, you must ensure that you master Take
Profit and Stop Loss orders in all your open positions in order to have a
healthy control of your trades and account.
We also always advise to use a demo trading
account initially in order to master a trading strategy and work towards
achieving it.