Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
Trading bitcoin to make a profit has become a very popular business. Many professional brokerage firms are offering bitcoin trading services to retail traders so that they can utilize the market volatility and make a decent profit by trading the cryptocurrencies. But trading the cryptocurrencies is not as easy as the currency pairs. Even the professional Forex traders often find it hard to trade the bitcoins in the global market due to massive price swings. So, can we trade the bitcoin and create a steady source of income? The obvious answer is yes. However, you need to work hard to push your skills to pro levels.
Today, we are going to give you some simple tips that can help you to trade the bitcoin or any other cryptocurrency like a pro trader. Let’s explore the key steps.
Learn about the associated risk
You need to learn about the associated risks in trading before you trading the crypto market. Based on the recent study, we can say that more than 96% of retail traders are losing money. When it comes to trading the crypto, you should be extremely careful about the market volatility. However, the risk is somewhat less when you trade this market with the low leverage account. Most high-end brokers don’t offer insane leverage for trading in the crypto industry. Even if you intend to trade with high risk, you are not going to have high buying power. In a sense, you are limiting the risk and profit factors to a certain extent.
Use the demo account
You need to develop a trading strategy to trade the crypto market with a high level of accuracy. Most of the naïve traders are concerned about the withdrawal of their profit. You don’t have to worry about the profit since you can use a reputed European crypto exchange and get your local account funded in less than 5 business days. So, focus on the development of your trading strategy. Instead of using a super complicated trading method, try to learn the price action trading method. The price action strategy is often considered as the best way to earn more money from this market with managed risk. So, if you can master this technique, you can easily trade the cryptocurrencies.
Analyze the major trend
Never think that all cryptocurrencies are in an uptrend. For instance, think about bitcoin. After securing a record high of $20,000 in the year 2017, it dramatically fell in the global market. Those who are smart shorted the bitcoin and made a decent profit in the big drops. But those who are naïve lost a big amount of money since they went long at the deep and the price continued the bearish momentum. You need to learn to analyze the medium-term trend to trade the bitcoin or any other cryptocurrency like a pro trader. Never try to trade against the major trend since it increases the risk factors.
Analyze the fundamental news
You need to analyze the fundamental news to become a good trader. Some of you might say bitcoin is not accredited by many governments. Though it’s true but the major news on bitcoins or any crypto industry can create a high level of volatility. To become a good trader, you must learn to analyze the fundamental news. And analyzing the fundamental news is not all hard. It is much easier than analyzing the Forex major news. Though you will find it hard at the initial stage, once you learn this technique trading the cryptocurrencies will be a lot easier.
Conclusion
To become a cryptocurrency trader, you must learn to analyze the risk factors. Use the demo account to develop a systematic approach to create a balanced trading method. Try to learn from the losing trades and never get frustrated. Stick to your trading method and try to fix the faults in your trading strategy.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.