This post covers the basics of Bitcoin trading. It will help you get familiar with basic terms, understand different ways to “read” the market and its trend, make a trading plan, and learn how to execute that plan on Bitcoin exchanges.
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Bitcoin Trading Summary
Bitcoin trading is the act of buying low and selling high. Unlike investing, which means holding Bitcoin for the long run, trading deals with trying to predict price movements by studying the industry as a whole and price graphs in particular.
There are two main methods people use to analyze Bitcoin’s price – fundamental analysis and technical analysis. Successful trading requires a lot of time, money and effort before you can actually get good at it.
In order to trade Bitcoins, you’ll need to do the following:
Open an account on a Bitcoin exchange (e.g. CEX.io, eToroUS users disclaimereToro USA LLC; Investments are subject to market risk, including the possible loss of principal. 78% of retail CFD accounts lose money.CFDs are not available to US customers.Proceed to eToro, Bitstamp)
- Verify your identity
- Deposit money into your account
- Open your first position on the exchange (i.e. buy or short-sell)
That’s Bitcoin trading in a nutshell. If you want a really detailed explanation, keep on reading.