Bitcoin, the most valuable and popular digital currency, has in the past few years risen to astronomical valuations. It is the only coin that has managed to surpass the $10, 000 mark, at one point reaching $18,000. It’s not a wonder that crypto enthusiasts, as well as amateurs are trying to get into bitcoin trading, in the hope of making some money from its volatile nature. Furthermore, some traders have also found success investing in cryptocurrency funds. In Germany for example Krypto Fonds have soared in popularity over the past few years. If you too would like to make some money using cryptocurrencies like bitcoin, here are 5 tips on how to trade bitcoin.
- Use a Crypto Trading Robot
If you are new in the industry, you might find it a bit confusing trying to buy and sell bitcoin through exchanges. Luckily, there is a solution. Instead of following this long and usually tedious process, you can simply buy the services of a crypto robot, like the one featured in this Bitcoin Trader Review. Crypto robots make your work easier since they analyze the markets, and place the best possible trades automatically. If you manage to find a genuine crypto robot, then you will be assured of daily profits, with very slim chances of making a loss. Keep in mind that seasoned traders can also use such robots.
- Identify a Suitable Trading Platform
If you want to trade and profit with bitcoin, then you need a reliable, reputable and efficient trading platform. When shopping around for one, check online reviews to ascertain the worth and integrity of such platforms. A good trading platform should have an easy to use interface, and should carry out transactions quickly in addition to having low fees. Once you have identified a suitable trading platform, do not just rush in to trade. First, practice with a demo account, then trade under the guidance of a professional before you start trading by yourself.
- Have a Goal for Each particular Trade
This one calls for humility and discipline. If you have a defined goal when trading, you will not be tempted to place more trades, than you’ve planned. Being greedy when trading is always a recipe for disaster. To make the most out of trading, have a goal and a strategy and stick to it no matter the situation in the market.
- Know How to Set Target Profit and Stop Loss
Trading is a tricky process, where you can lose all your money in one swoop. In fact, most traders lose all their money within the first few months of trading. If you do not want to be among this group of traders, make use of “stop loss” and “take profit” settings. These settings cushion you from losing all your invested cash in case a trade goes wrong.
- Never Trade with Cash you Cannot Afford to Lose
Just like all other digital coins, bitcoin is very volatile, and changes in price from time to time. If you invest all your money in bitcoin, you might be exposing yourself to possible losses since the price of bitcoin can shoot downwards in an instant. This can leave you financially exposed, and in the worst case scenario, bankrupt. That’s why you need to only invest a small portion of your money in bitcoin.