Are you someone who is thinking of trading Bitcoins, Altcoins, Ethereum or any other cryptocurrency? If yes, you need to learn everything about the trade before taking the plunge. While it can be said without a doubt that 2017 was the year of cryptocurrencies, since then, the value of cryptocurrencies have been increasing like never before. It was in 2017 that Bitcoins grew up $1000 to more than $10,000 and with such growth, there has been an explosion in the trading market which in turn helps the currency to keep increasing. For the cryptocurrency beginners, it is vital for you to get a feel of the movements of the market.
Due to low fee, transaction speed, increase in value and several other factors, people from all over the globe makes Bitcoin as one of the main exchange modes. What are the 4 tips that you should take into account for trading Bitcoin? Check them out.
Fluency in technical analysis is needed
As compared to other currencies or asset classes, the nature of Bitcoin makes this cryptocurrency an exception. There isn’t any governing body or central bank which influences its valuation. The pricing models of Bitcoin are highly speculative and it even ignores most of the conventional financial theory. Hence it is an absolute necessity to that you have fluency in technical analysis before entering the Bitcoin trading market.
- Follow a sustainable pace
Trading is not a sprint, it is a marathon. One of the most tasks for the beginners who are facing the Bitcoin market is to establish a schedule which can bear the brunt of the market fluctuations over the longer span of time. If you make the mistake of investing extraordinarily long hours every day, this will harm your performance and will also lead to quick burnout. It is not possible for anyone to trade effectively 24X7. Hence, you should follow a manageable schedule where you should only outline and focus on the optimal trades.
- Be updated on the latest news on Bitcoins
As mentioned above, Bitcoin is unique and any specific news item won’t have any predictable effect on the markets. There aren’t any WASDE, scheduled GDP releases, EIA inventory reports to enhance participation. Nevertheless, the unanticipated news items can be able to influence the price of Bitcoin greatly. So, whenever you think of trading Bitcoins, make sure you have easy access to live news feeds.
- Use wise leverage
Though it is a cliché but it is true that leverage is nothing but a double-edged sword. Leverage enhances your gains but also magnifies the losses. Whenever there is too much of leverage, this can lead to reckless finance management which can in turn blow off your trading account. On the other hand, too little leverage can bar your performance as premium trades might not perform till their capabilities. So, if you’re a Bitcoin trader, it is important for you to manage leverage in an effective manner. Bitcoin futures products can let you manage leverage as they give an extra emphasis on accurate leveraging.
Mistakes are always costly. Safety rules are written with blood. Though the statement sounds familiar to the soldiers around, yet losing your costly Bitcoins by committing mistakes is certainly not something that you want.
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