5 Easy steps for Bitcoin Trading for Profit and Beginners

bitcoin Buy Sel

Bitcoin is a form of cryptocurrency ( digital currency) in which encryption is used to verify transfer of funds and units generation.

Find an Exchange

Unfortunately, Bitcoin doesn’t have an official exchange, partly because of the risks to bitcoin and other challenges.Therefore users should consider the following

1. Location- You must put into consideration an exchange that accepts payment in your country before you decide to deposit fiat currency
2. Liquidity- this is important considering that large stakeholders will prefer bitcoin exchange with good market depth and of high cash
3. Regulation and trust – You must carefully think if the transfer of which you want to settle to is trustworthy and whether there is a possibility of the exchange running away with the customers’ money
4. Fees – You must be prudent enough to know beforehand the percentage that will be charged on every trade.

How to buy and sell bitcoins

Kraken is used to demonstrate to you as an example, although the process and the steps remain the same for all exchanges.
1. You must create an account on Kraken by signing up (This is from the sign-up box on the upper right corner) on the Kraken’s page.
2. Account confirmation- verify your account via the email. Once you have completed the confirmation process, you can now log in to your account and check your personal information. AML and KYC laws mandate all Bitcoin exchanges to incorporate varying levels of verifications.
3. Selecting the funding method.- After confirmation, go to the “funding ” tab and select the preferred funding method you would wish to use or rather the one that suits you best.
4. Trade- now navigate to the “trade” tab, you have an option of switching between trading pairs. To buy bitcoins, move to the “New Order ” tab and put an order.
5. Submit a request – Check the order book for your trading pair before placing an order.

How to make a profit: Basic for Beginners in selling Bitcoin

Cryptocurrency prices tend to rise and fall dramatically on each trading day; this among the significant risks to bitcoin. The following are some essential rules for beginners to make maximum profit from bitcoin trading.

1. Understand the market is a diverse and continuous process which requires a lot of patience, effort, and concentration. Hence it is essential to do research and be updated on the current trends.2. It will be very wise of you to spread your risks, Break your capital into smaller amounts for numerous and varied positions at different price levels.
3. Capitalize on the available and present technology for maximum profit gain.
4. The bitcoin market still experiences very high levels of uncertainties, and because of this, you should be careful enough not to invest money that might change your life drastically if you lose the money.
5. Investors in the bitcoins should know that both winning and losing is part and parcel of the trading business. It is the overall cumulative gain that matters.
6. Know the right time to cash in. Staying unemotional, focused and professional is crucial.

Is selling bitcoin profitable?

Yes, it is, in fact, you can make tonnes of money trading bitcoins, the following are among the significant reasons why bitcoin trading is a lucrative business.
1. Arbitrage opportunities. Unlike the traditional forex market a lot of investors us, bitcoin market is relatively new and not as efficient. Hence there is a more significant opportunity to arbitrage between different currency pairs, exchange rates, etc
2. Price and bitcoin demand relationship. – If you expect an increase in the number of people expected transacts bitcoins, this implies that you would make more profit by buying bitcoins at the end
3. The volatility of bitcoins enables “free leverage.” Bitcoin has between 7 to 19 times leverage of EUR USD; this is a very desirable characteristic of bitcoin despite the risks to bitcoin that might be involved.
4. Bitcoin is minimally related to other assets. Bitcoin trading volatility and prices, when compared to EUR USD, establishes no correlation between the two. There are also reports indicating uncorrelation any other form of currency.

The six most significant Risks to bitcoin

1. Merchant-label enterprises stop to use bitcoin
Various brands are accepting bitcoins as a means of payment. However, this has the potential of being a significant point of failure. If the bitcoin remains to be volatile, It is because merchants could resort to bowing out of accepting bitcoin as a mode of payment. That is, if brand name merchants ever consider bail on virtual currency, bitcoin price will tumble.
2. Cyber and information security exploits and attacks. Bitcoin exchange centers are a single point of failure; this is because they manage more than half of all trading volumes for bitcoin; hence an attack on it could mean destabilization of the market thus lowering bitcoin.
3. Bitcoin’s blockchain loses appeal. If bitcoin’s blockchain does not stand out, this could mean a potential end of bitcoin to competitors like Ethereums blockchain which uses smart contracts.
4. Stringent regulations. Increased regulatory measures by different countries can build or break bitcoin.
5. Sentiments of investors- Investor’s opinions, particularly the retail investors, who are influenced by their feelings that affect their investment decisions, have been a critical factor in the growth of bitcoin but again can be the same sentiments that can destroy the value of the bitcoin
6. The mayhem from CME listing. Fluctuating bitcoin’s value can destabilize the bitcoin’s market if its value continues to swing up and down.

How to trade Bitcoin

One can start buying and selling bitcoins by following this step:

1. You should decide on how you would want to deal with bitcoin
2. Learn bitcoin’s price moving factors
3. Decide and pick bitcoin trading strategy
4. Make your bitcoin trade.
The best bitcoin trading strategy
1. Overlay the Bitcoin chart with the OVB indicator and Ethereum chart.
2. Determine the smart Money Divergence between Bitcoin price and Ethereum price.
3. Look for the OVB to increase in the direction of the trend
4. Put a purchase limit order at the resistance level to catch the possible breakout.
5. Place SL below the breakout candle once the OBV reaches 105,000

Before you decide on whether you would wish to start engaging in bitcoin exchange, there are many factors you will have to put into consideration as I have listed above before delving into the bitcoin business.