Take The First Step Of Your Crypto Journey With Bitcoin Trading

Bitcoin is the most popular crypto token since its first appearance in the crypto market in 2009. The advent of cryptocurrencies has opened a new avenue of investment.

Along with investment where you hold on to your Bitcoin holdings, you also have potential scopes of scooping out profit by Bitcoin trading, by selling and purchasing Bitcoin by following its market movement.

But in order to profit from Bitcoin trading, one must conduct market research and analysis, which can be done using either fundamental analysis or technical analysis. 

Bitcoin Value 

The cryptocurrency market is an extremely volatile, and in such a market multiple factors influence the Bitcoin value:

  • There is a predictable supply of Bitcoin which can be found at any point in time. Unlike the supply of fiat currency, which is controlled and managed by the government, the limit of Bitcoin is fixed at 21 million. 
  • Bitcoin operates worldwide through open-source code, and all transactions of Bitcoin are validated and recorded in blockchain with a timestamp. Therefore, by accessing the public ledger, Bitcoin’s current supply in the global market can be verified at any point in time. 
  • Bitcoin is secured with cryptographic encryption, and to generate a Bitcoin immense of energy is required. Therefore, to even an attempt to undermine Bitcoin encryption would require an impossible amount of energy, making it the most secure network. 
Take The First Step Of Your Crypto Journey With Bitcoin Trading

Bitcoin Price Influencing Factors 

Bitcoin is the most popular crypto not without reason and there are several factors that directly or indirectly influence the price and demand of a Bitcoin.

Supply: The supply of Bitcoin is limited to 21 million, and experts analyze this limit to exhaust by 2140. When there is a finite supply, generally with a rise in the market demand the price rises.

Media:  Potential media news like that of Tesla announcing acceptance of Bitcoin as a payment mode and its final call-off, made a huge impact in the market. Negative news is thought to cause prices to fall, whereas Microsoft, Overstock, and Amazon accepting Bitcoins increased its market value.

Key events: There are worldwide events revolving around Bitcoin, its acceptance, and governmental regulations regarding Bitcoin trading and investment, which makes a major impact on the price of Bitcoin. 

The next step is to become familiar with trading strategies in the cryptocurrency market once you have an understanding of the influences and factors that affect the value and movement of the Bitcoin price. 

1. Day Trade 

This is quite simple, as it can be traced from the term itself, day trade. In this technique, you buy a cryptocurrency and monitor the price movement throughout the day, and sell the token on the same day at a greater price difference or even at a drop. 

2. Trend Trade 

Trend trading refers to following the existing market trend in trading as well. for example, if the market is bearish, you would go for short trading, while if it’s bullish you can settle for long. 

3. Scalping

With increased trading volume, this trading strategy ensures engulf and verifies profit. Despite the risks, this strategy calls for a thorough analysis of historical trends, the management of cryptocurrency assets, and the determination of entry and exit points to reduce risks.

4. Range trading

Crypto traders also take up to experienced analysts, who offer market analysis, support, and predictions of market movement every day. In this type of trading ‘Resistance’ refers to the maximum level up to where the cryptocurrency price may rise.

While just the opposite is ‘support’ which is an optimum level of an expected drop in price from the current price. Traders can trade in between knowing these two limits.

5. High-Frequency Trading (HFT)

HFT is referred to as an algorithmic trading strategy, which is mostly followed by quant traders.

While this strategy adoption requires enhanced knowledge and understanding of the crypto market, and the development of algorithms and trading bots, it is indeed a technique adapted by advanced traders only. 

However, the most essential point of Bitcoin trading is choosing a reliable and secure trading platform, and wallet system to manage your crypto holdings.

You can check out for comprehensive support, trading tools, and easy trading account setup if you are planning to start up with Bitcoin trading lately.

Related Posts:

  1. How Bitcoin wallet hacking is carried out by hackers?
  2. Can you double Bitcoin in 24 hours? – bitcoin doubler
  3. Real BitCoin Generator Hack tool – Does it work?
  4. Bitcoin wallet scam: Never ask someone to create a BITCOIN wallet for you.
  5. How to Financially Survive an Economic Depression
  6. 7 Altcoins Apart From Ethereum, Worth Your Attention