Bitcoin Price on ‘Second Leg of Bull Market’ – Follow Live - How to Trade Bitcoin?

 Bitcoin Price on ‘Second Leg of Bull Market’ – Follow Live - How to Trade Bitcoin?

Bitcoin experiences a dramatic crash in the past few months, but the good news is it has started to show a remarkable recovery. In late July, it was crashed to $30,000. On 20th August, it has crossed the $48,000 mark. It’s almost a 50% increase in price. This increase in the market has nearly doubled the price of Ethereum.
Since the start of 2021, we have seen a 300% surge in Ethereum prices. Even Bitcoin only gets a 40% hike. So, the good news is the Bitcoin price is getting higher day by day, and if the bad news doesn’t come, it will continue to rise. Now, you must want to learn Bitcoin trading? Isn’t it? So, let’s find how a beginner can start Bitcoin trading.

How to Trade Bitcoin?

It’s simple because you have to purchase the coin from any online exchange and wait for the price to rise. You can become a successful trader when you speculate on the increasing and falling prices. If you want to make money from Bitcoin trading, follow this guide.

Steps for Bitcoin Trading

You can follow the below-given steps and become a successful trader:

• 1.    Learn Factors That Fluctuates Bitcoin Price
  

Many factors influence Bitcoin’s price and you must know them for making profits.

• •    Bad News

Any news related to Bitcoin security, longevity, and value will have a
negative effect on the Bitcoin price. So, in this case, you can purchase
more so that when the market gets stable, you can sell and make a
profit.

• •    Bitcoin Supply

 The demand for Bitcoin is expected to increase by 2040. So, if the supply isn’t increased, then you’ll see an increase in prices. So, if you want to hold, then you should do that.

•  •    Events

 Events play a significant role in the rise and fall of Bitcoin prices. For example, security breaches and regulation changes might bring the prices down. On the other hand, good events can boost the prices.

• 2.    Choose the Trading Style

There are many trading styles and strategies. Some common strategies are trend trade, day trade, hedging, and HODL. You need to research all these strategies before choosing one.

• 3.    Get Exposure to Bitcoin

Again, you have multiple options. Bitcoin derivative is the best approach because you don’t have to own Bitcoin. You can just speculate the price and make money by using deep liquidity, hedging, leverage, and margin approach. Moreover, you can buy and hold Bitcoin. Multiple exchanges allow you to purchase Bitcoin.

• 4.    Set Your Limits

 You need to be active if you want to make money from Bitcoin trading. For example, you have purchased something; you can set limits. So that if prices get higher, you can earn a profit, and if prices get lower, you can apply stop loss. Be wise when setting limits.

• 5.    Monitor Your Trade

It’s an extension of the previous step. Once you purchase the coin, you need to keep an eye on the market. As mentioned at the start, late July was the ideal time to invest in crypto. So, you’ll get these opportunities from time to time again. You should learn technical analysis if you want to become a successful Bitcoin trader.

•  6.    Sell Your Asset to Take Profit or Loss

 When you own a coin, you’re a boss. For example, when the prices reached a certain level that makes you uncomfortable, you can immediately close the position by selling your coins. In contrast, when you feel comfortable, follow the same steps and earn profit.
So, by following all these steps, you can become a successful Bitcoin trader.