Bitcoin Trading Guide for Beginners: Trading is the process in which traders buy at a low price and sell at a high price. You can understand...
Bitcoin Trading Guide for Beginners:
Trading is the process in which traders buy at a low price and sell at a high price.
You can understand the market in many ways so the first thing is to learn basic things from the market.
To trade Cryptocurrency, you need to open an account on a bitcoin exchange.
Verify all the details.
Deposit Money to your account.
Start your first trade on the exchange.
Before start trading first decide what you have to do-investing vs trading.
The best traders and investors know that patience is the key to making successful.
Cryptocurrency Investment
In bitcoin, many people believe that the price will ultimately rise because they believe in the technology, ideology, or people behind the currency.
many people invested in bitcoin, with the few years become rich. they all invest in the long term, not for the short term. this is the philosophy for investing
First, bitcoin is very volatile. In other words, you can make a nice profit if you manage to correctly anticipate the market.
Second, traditional markets have a particular opening and closing times such as stocks and commodities market, while Bitcoin trading is open 24/7.
With Bitcoin, you can buy and sell whenever you like. Bitcoin is unregulated in most countries makes it relatively easy to start trading without the need for identity-verification processes.
Cryptocurrency Trading
There are two methods which used to analyze Cryptocurrency price
1.Fundamental analysis: In fundamental analysis refer to accounting and finance.
Fundamental analysis tries to predict the price by looking at the big picture. In Bitcoin, for example, the fundamental analysis estimates Bitcoin’s industry, news about the currency, technical developments of Bitcoin (such as the Decentralize network), regulations around the world, and any other news or issues that can affect the regulation of Bitcoin.
For example, China instantly decides to ban Bitcoin in the year 2017, this results in a sudden price drop. Good news also matters to increase prices like Bitcoin hard fork and regulation of bitcoin by any country.
2.Technical analysis: Technical analysis is a trading discipline by analyzing statistical trends gathered from trading activity, such as price movement and volume. It has many tools like OBV, RSI, MACD, and the most famous is Japanese candlestick.
Technical analysis Tries to predict the price by studying market statistics, such as past price movements and trading volumes. It tries to identify patterns and trends in the price and based on these deduce what will happen to the price in the future.
Which strategies are better?
We discuss both strategies technical and fundamental. The simple magic of trading is a mix of both strategies will probably yield the best results.
We can start trading in two way
1.Day trading: This method involves conducting multiple trades throughout the day, and trying to profit from short-term price movements. Day traders spend a lot of time staring at computer screens, and they usually just close all of their trades by the end of each day. picking up pennies currency. Scalping focuses on extremely short-term trading and it’s based on the idea that making small profits repeatedly limits risks and creates advantages for traders.
2.Swing trading: This type of trade tries to take advantage of the natural “swing” of the price cycles. Traders try to identify the beginning of a specific price movement and enter the trade then. Swing traders try to see the big picture without constantly monitoring their computer screen For example, swing traders open a trading position and hold it open for weeks or even months until they reach the desired target.
Basics of Trading
Order Book
The Order Book is the complete list of buy orders and sell orders are listed in the market’s order book, which can be viewed on the trading platform. The buy orders are called bids since people are bidding on the prices to buy cryptocurrency. The sell orders are called asks, since they show the asking price that the sellers request.
Volumes
As here in the image Top10, cryptocurrency volume is given. This will help you find the Trends of the price. You can decide the price is going up and down by the trading volumes. It is an important factor. while weak trends are shows by low volumes. For example, the upward trend will be shown by high volumes when the price rises and price declines show the low volumes.
Stop Loss
Every trade has a price break-out. We can identify stop loss by the historical graph. For this open the weeks and days chart.
Now you’re familiar with the Basic of trading,
Read the Price Charts
It’s time for a short intro to reading price graphs. Japanese Candlesticks a very widely used type of price graph, Japanese candlesticks are based on an ancient Japanese method of technical analysis. Each “candle” represents the opening, lowest, highest, and closing prices of the given time period. Due to that, Japanese Candlesticks are sometimes referred to as the OHLC graph (Open, High, Low, Close). It depends on the candle is green or red, you can tell if the closing price was higher or lower than the opening price. If a candle is fully green, it means that the opening price was lower than the closing price. If it’s a bear market, most of the candlesticks will be red. Bull and Bear Markets These terms are used to indicate the general trend of the graph, whether it’s going up or down.
First, you make your own strategy to trade in cryptocurrency.
No one can explain to you how to make money with trading.
First, you have to learn after you can start to earn.
Before you invest, proper risk management is more important than making money.
Is it possible to predict the future? Answer me on a comment
So we can’t predict any cryptocurrency price.
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