If you don't know how to trade Bitcoin, then you've come to the right place. Our guide will help you understand everything you need to know to start your first steps in Bitcoin trading, how to choose the trading apps platforms and how to place your first trades.
Tips, strategies, tricks to be profitable. Everything you need to start changing your financial life and have a more stable tomorrow. After reading, you will be able to start trading like a real expert.
The best platforms for Bitcoin trading
If you are new to this world and you don't even know what trading is, well, then you have to start right from ABC and therefore we recommend you use a free trading library to learn at least the basics.
Many resources and also a complete and free trading course, is offered by a well-known platform in the sector, it is eToro. This, in addition to offering an easy to use, regulated and safe software, also offers its users a complete guide to take the first steps in this world.
eToro is a worldwide recognized platform and can boast of over six million users. Their platform for copy trading is among the best there is, as it allows you to trade following what professional traders do.
This platform is available worldwide. While anyone residing outside the United States can also test Bitcoin Trader. It is an excellent automatic trading software that allows its users to achieve success rates that only professional traders are able to achieve.
What does Bitcoin trading mean?
Bitcoin trading is a financial transaction that speculates on the price of the world's most popular crypto currency, to make a profit. With Bitcoin trading you do not really own the asset, but speculate that its price may rise or fall.
This offers operators a big advantage. With commodity trading - that is the exchange of raw materials - this advantage does not exist, for example. If the value of your property falls, you will be at a loss. With Bitcoin trading, however, speculating on the direction of the price, you can always make a profit, regardless of the trend of the cryptocurrencies. Exciting isn't it?
How to trade Bitcoin with eToro
To trade with eToro, the first thing to do is to sign up. Registration is very simple and takes only a few minutes. Just go to the official website, click on the Register button and then enter your personal data.
Registration can also be done through your social profiles, Facebook and Google+. Once registered, all you have to do is confirm your email via the link that will be sent to the email address associated with your account.
As mentioned above, eToro is a perfectly regulated platform and therefore, following what stability from the relevant laws, it will be necessary to verify your identity. How?
Simply by sending a copy of your ID, a user bill and a bank statement. This procedure will also allow you to increase or decrease the limits of your deposits.
Payment of capital
Without the above, it is time to fund your account with the capital to trade cryptocurrencies. The platform accepts the most popular payment methods on the web.
Therefore, you can deposit the money into your account by bank transfer, credit card or electronic wallet. On security you can be sure, military-grade encryption and HTTPS protect your financial data.
Perform Bitcoin trading
Funded your account, it's time to open the first exchange with the trading app. To do this, simply choose a trading pair and then decide whether to buy or sell.
In the beginning, we recommend that you only trade with very low amounts. This will improve your general trading experience without running the risk of losing all your money.
How to trade online with Bitcoin Trader
Again, to start doing Bitcoin trading you will need to register. Once you have accessed the official page, you will be asked to enter your personal information in a form on the homepage. It takes less than two minutes to open the account and verification of your identity is not even required.
Deposit of capital
This day trading platform allows you to enter the world of cryptocurrency trading, with a very low initial capital, starting from 250 euros. Again there are plenty of payment methods available to fund your account.
Bitcoin trading in demo
In this case, we advise you to start trading in demo. This will allow you to become familiar with the platform and increase your chances of success once Live.
In the demo all the features are also available on the live platform and therefore in addition to cryptocurrencies, you can also do forex trading, cfd trading and more.
Live Bitcoin trading
Once you are ready to do Bitcoin trading, just click on the Live button. The first thing to do will be to adjust some basic settings. For example, how much you want to invest on each trade (start with the minimum), how much profit you want to get on each trade, which pairs you prefer to trade and so on.
Once you have adjusted all the settings, you can click on autotrading. Bitcoin Trader will start doing Bitcoin trading on your behalf, based on the results of the market analysis carried out by its advanced algorithms.
Advantages and disadvantages offered by Bitcoin trading
Unlike what happens with mirror trading, with Bitcoin trading you will be in command of your operations, unless you decide to put everything in the hands of a bot like Bitcoin Trader. This has advantages and disadvantages.
Low commissions. Low Bitcoin trading applies low fees. In addition, there are never any fees for withdrawing your profits. The commissions are so low, that even if you send millions of euros, you would pay less than 100 euros in commissions!
Excellent performances. Bitcoin was the first cryptocurrency to be launched on the market, which is why it is also the most popular. Today, many online stores also accept it as an exchange currency and for this reason, withdrawing and spending it becomes increasingly convenient.
Wide availability of platforms. Today there are many platforms like eToro or Bitcoin Trader to exchange cryptocurrencies. If you want to know more, you can read our reviews.
Volatile prices. Cryptocurrency markets are very volatile, perhaps the most volatile of all. For this reason, be prepared for big gains, but also for big losses. In this regard, we remind you that it is not worth risking money that you cannot afford to lose.
Still little historical data. Unlike other markets, such as equities, historical data is in short supply because cryptocurrencies are quite new. Usually, historical data is used by professionals to trade more accurately.
What is leverage used for?
Bitcoin trading is very risky also because the trading platforms use very large financial levers. What are these levers for? Simple, to invest in a transaction, more than you actually put on the market.
Let's take a practical example. If you open a position with a 2x leverage (in the world of Bitcoin trading they can even reach 100x and beyond) your gain will be no more than 5% but 10%, admitted and not granted that Bitcoin has gained 5% in a session.
This makes us understand, how huge gains are possible using this lever, but also huge losses. Trading by investing larger amounts of your capital is called margin trading. Not all platforms allow you to do this, for obvious reasons.
How much money can you earn with Bitcoin trading?
In fact, no one can accurately answer this question. There are many factors that can influence your earning potential, including:
- Your experience in the world of Bitcoin trading
- Your knowledge of crypto markets
- The capital invested
- How much time do you spend on trading
- Applied strategies, etc.
According to an authoritative survey, conducted by one of the most authoritative financial journals in the sector, 90% of people who start trading lose money and give up everything in a matter of weeks / months. In fact, experts say the cryptocurrency market is the most difficult to master, especially for beginners. This is because of its high volatility.
The same survey, says that a professional operator, can transform € 10 in € 1000 in a very short time, taking advantage of very high financial levers. However, this is something that no beginner can ever easily achieve.
If you think that the Bitcoin price is set to rise in the coming weeks / months, then you can open a long-term position and also invest 1000 euros. If Bitcoin is worth € 10.000 today, once you reach € 20.000 your initial investment will be doubled!