In this guide we will teach you how to trade Bitcoin for profit. Its important to understand the differences between a long term investment and a short term trade.
We will go through time in the market versus timing the market, risk management and what bitcoin trading platform to use.
What is long term investing?
Long term investing refers to an asset that you intend to hold for more than a year.
A commonly used term for long term investing in the cryptocurrency sphere is HODL.
For long term investing the time in the market is much more important than timing the market.
What is short term trading?
Short term trading refers to an asset that you intend to hold for less than a year and it can be just a few seconds.
Many people use leverage when they do short term trading to maximum their profit since they are such a short time in the market.
For short term trading its more important to time the market than time in the market.
Time in the Market VS Timing the Market?
Best Bitcoin Trading platform for long term investing
Best Bitcoin Trading platform for short term trading
If you are going for short term trading you should look for the best bitcoin trading platform offering a good leverage to a low price. We would look for a large and well established trading platform like BitMEX, Bitfinex or Binance.
Read more about bitcoin trading platforms.
Conclusion
The value of cryptocurrency rises and falls every day, and thus is a great way for people to trade bitcoins and gain some profits along with returns on their investments. Purchasing bitcoins online and then selling them is one of the easiest hassle-free ways in which anyone can make some money online. We at, Cryptocoinzone, a bitcoin review site, bring you some of the ways in which you can earn profits by bitcoin trading exchange.
Bitcoins are generated through a mining process which requires solving of algorithms to decrypt it, and the time taken to do so always depends on the skill sets of the miner. This process being hectic, is what has caused people to purchase cryptocurrency through bitcoin trading sites.
To be able to trade bitcoins and earn profits, one of the basic requirements is setting up an account with a trustworthy bitcoin trading exchange platform, and then make deposits in your account. Once your account is set up and verifies, you will be able to monitor the trading market and make decisions on when to buy and sell bitcoins.
The bitcoin trading site will charge you a minimal transaction fee, but would make the process of converting bitcoins into local currencies and vice-versa easy. Though one should always keep in mind that the market is changing every second and it will take some time to understand how it works.
One can also exchange bitcoins into any other cryptocurrencies, and sometimes that also helps you make some profit. Additionally, if you are not sure about doing the trades yourself, you can opt for the services of a bitcoin trader who would not only manage your cryptocurrencies but will always be updated with the market trends and trade bitcoins for you.
There are various ways to trade bitcoins, you need to see which strategy works the best for you. You can either become a day trader or opt for swing trading or just wait for the market to become stable before trading. Having accounts in multiple bitcoin trading exchanges is also a smart move, so that if for some reason your primary account crashes, you won’t end up losing all of your investments.
For further guidance, you can have a look at our reviews and articles at Cryptocoinzone and start earning profit on your bitcoins/crypto currencies today.
