How do I trade bitcoins?

The value of the cryptocurrency is constantly changing. This allows you to make money on fluctuations (growth, fall) in the exchange rate. The question "How to trade bitcoins" is relevant in a special way. After all, this "currency" is very volatile. If you get into the trend, the earnings will be huge. The risks are also great, but they are easily compensated for with a competent attitude to the buying / selling process.

How to protect investments and not be distracted from trading

Before you start trading on a cryptocurrency exchange, it is recommended to take care of the safety of your funds. If access to bank accounts is restored with a passport in banks, this is not provided for with cryptocurrency. The loss of a wallet is tantamount to the complete loss of all the money that was on it. The protection procedure is similar to other online resources, but if there is no special need to strictly adhere to the rules, they are mandatory here.

How to Prepare to Trade Bitcoin

In order for bitcoin trading to start making profit immediately, it is recommended to work on a demo account for at least the first month. This will allow you to practice the skills of opening deals and managing their status live. And also along the way to compare the real change in the course with news, events in the world market.

Technical and fundamental analysis in Bitcoin trading

Outwardly, judging by the graph in the terminal program MetaTrader 4, trading in cryptocurrency is similar to working with currency pairs. Candles, trends, lows and highs are forming. But the situation with bitcoin / altcoins is somewhat different. The crypto market has no history like the US dollar or the British pound. Plus, digital coins are not tied to any country, so events in individual states do not directly affect the rate.

The basic postulates of technical analysis will have to be applied with certain reservations:

  • The market price takes into account everything - the price of Bitcoin is more influenced by the widespread excitement around the sharply increased rate, so you cannot seriously count on this factor;

  • The market obeys trends - this rule works fine with cryptocurrencies. If the trend has started, the price changes stepwise, with a correction;

  • History repeats itself - the dynamics of growth of the bitcoin rate is so high that there are no repeats of the price yet.

Fundamental analysis, as it is used to assess trends in currency pairs like EUR/USD, is hardly applied to cryptocurrencies. But the question "How to trade bitcoins" can still be answered. Experienced traders are closely following the news on social media. Networks and on thematic forums. It is there that you can find an informational reason for the fall or rise in the exchange rate. For example, news about the hacking of the next exchange significantly affects the value of the cryptocurrency. Such events undermine confidence in the bitcoin system and can cause a drop in the rate for some time.