Bitcoin trading is one of the most lucrative forms of online trading which has gained so much popularity in the last couple of years. Bitcoin has been termed as one of the most important invention in human history as it has allowed for people to use virtual money to trade online.
If you are looking to start trading with Bitcoin then this is some of the most useful tips which you can use to guarantee your success in trading.
1. Know the risks
Bitcoin trading is very exciting but one thing that a trader needs to understand is that it carries a degree of risk. The reason for this is because bitcoin trading is very volatile and the prices can fluctuate with over 5%. Understanding the risks involved will be very helpful in determining the amount that one is looking to trade with.
Knowing the risk involved will also help in finding ways to mitigate the risk. Bitcoin Loophole System is one of the relatively new bitcoin systems which ensure that investor can expect excellent returns.
2. Find a Good Exchange
In bitcoin trading, one has to find a good exchange which can guarantee benefits and profits. In looking for a good exchange there are a couple of things which one needs to consider. The exchange has to be trustworthy and regulated to ensure that they do not run away with investor’s funds.
It is also important to determine the location of the exchange; this will come in handy when you are looking to deposit fiat currency. Liquidity is another key consideration especially if you plan to invest a lot and thus you will need large liquidity. The most popular exchanges include; coinbase or Kraken. These are the two popular exchanges that you will need.
3. Set Target and Stop Loss level
Bitcoin trading needs to be carefully calculated, this means that you need to have a clear exit strategy. This means that before you start trading you need to have a clear strategy on when you need to start taking profit and also on what level you need to start cutting your losses.
This will mean that at a certain level you cannot risk it further and you will have to stop trading and wait for more favourable period. The stop-level is the most critical level in bitcoin trading as it limits your losses beyond a certain point preferably at 25% of the position size.
4. Fund Your account
You cannot start trading in bitcoin if you do not have money in your account. You will need a brokerage account which you can open in Coinbase or Kraken as these two are the largest and well-regulated exchanges which ensure better trading.
Funding the account should not be hard as all you need is to add a payment method where you can choose your bank account or your credit card. In adding funds you need to know the processing fees involved, for instance, Coinbase charges 3.99% as processing fees. Once this is done then you are ready to start trading.