How to make money trading bitcoin?
A simple guide on how to make money trading bitcoin.
1. Open an Account
In order to trade, you need to have a trading account on bitcoin exchanges. You will also need to verify your identification.
2. Trading Plan
If you are new to the market, then you might also want to build a trading plan. It helps you make objective choices even when the risks are high so that you will know not to leave trades close too early or open for too long.
Here are some tips:
• Decide the acceptable risk for every trade as well as the amount of risk you’re willing to take.
• Set out what you wish to achieve from the trading, broken down into long and short-term goals.
• Choose which markets you wish to trade.
• Pick a risk-reward ration so that you know how much potential profit you’ll need in order to justify your potential loss.
Before trading, you need to ensure that you are up to the speed with the latest crypto news to best understand its price.
In terms of interpreting crypto behaviors, charts are the best tool you have. The past data can help you make sense of how the market is moving and comparing time frames can provide closer insights into emerging patterns and trends.
4. Place a TradeOnce you have settled your position, you can start placing a trade. Enter the amount you wish to stake on the trade in the deal ticket. Also, you can define close conditions. If you expect the crypto rise in value, then you will “buy” the market, otherwise, you will “sell”.
To close the position, simply place the reverse of your previous trade.