If you don't know how to trade Bitcoin, then you've come to the right place. Our guide will help you understand everything you need to know to get started with your first steps in Bitcoin trading, how to choose trading apps platforms and how to place your first trades.
Tips, strategies, tricks to be profitable. Everything you need to start changing your financial life and have a more stable tomorrow. After reading, you will be able to start trading like a real expert.
The best platforms for Bitcoin trading
If you are new to this world and you don't even know what trading is, well, then you have to start right from the ABC and therefore we recommend that you use a free trading library to at least learn the basics.
Many resources and also a complete and free trading course, is offered by a well-known platform in the sector, it is eToro. This, in addition to offering an easy to use, regulated and safe software, also offers its users a complete guide to take the first steps in this world.
eToro is a worldwide recognized platform and boasts over six million users. Their copy trading platform is among the best there is, as it allows you to trade following what professional traders do.
This platform is available worldwide. While those who reside outside the United States can also test Bitcoin Trader. It is an excellent automatic trading software that allows its users to achieve success rates that only professional traders are able to achieve.
What does Bitcoin trading mean?
Bitcoin trading is a financial operation that speculates on the price of the most popular crypto currency in the world, to make a profit. With Bitcoin trading you don't really own the asset, but speculate that its price can rise or fall.
This gives operators a big advantage. With commodity trading - or the exchange of commodities - this advantage does not exist, for example. If the value of your asset falls, you will be at a loss. With Bitcoin trading, however, by speculating on the direction of the price, you can always make a profit, regardless of the trend of the cryptocurrency. Exciting isn't it?
How to trade Bitcoin with eToro
To trade with eToro, the first thing to do is sign up. Registration is very simple and only takes a few minutes. Just log in to the official website, click on the Register button and then enter your personal details.
Registration can also be performed through your social profiles, Facebook and Google+. Once you have registered, all you have to do is confirm your email via the link that will be sent to the email address associated with your account.
Verification of identity
As mentioned above, eToro is a perfectly regulated platform and therefore, following the stability of the relevant laws, it will be necessary to verify your identity. Such as?
Simply by sending a copy of your ID, a user bill and a bank statement. This procedure will also allow you to increase or decrease your deposit limits.
Payment of capital
With the above done, it's time to fund your account with cryptocurrency trading capital. The platform accepts the most popular payment methods on the web.
Therefore, you can deposit the money into your account by bank transfer, credit card or electronic wallet. On security you can be sure, military-grade encryption and HTTPS protect your financial data.
Perform Bitcoin trading
Once you have funded your account, it's time to open your first trade with the trading app. To do this, simply choose a trading pair and then decide whether to buy or sell.
In the beginning, we recommend that you only trade with very low amounts. This will enhance your general trading experience without running the risk of losing all your money.
How to trade online with Bitcoin Trader
Again, to start trading Bitcoin you will need to register. Once logged in to the official page, you will be asked to enter your personal information in a form on the homepage. It takes less than two minutes to open your account and no verification of your identity is required.
Deposit of capital
This day trading platform allows you to enter the world of cryptocurrency trading, with a very low initial capital, starting from 250 euros. Again there are plenty of payment methods available to fund your account.
Bitcoin trading in demo
In this case, we advise you to start demo trading. This will allow you to familiarize yourself with the platform and will increase your chances of success once Live.
In the demo, all the features present also in the live platform are available and therefore in addition to cryptocurrencies, you can also do forex trading, cfd trading and more.
Live Bitcoin trading
Once you are ready to do Bitcoin trading, just click on the Live button. The first thing to do is to adjust some basic settings. For example, how much you want to invest on each trade (start with the minimum), how much profit you want to make on each trade, which pairs you prefer to trade and so on.
Once you have adjusted all the settings, you can click on autotrading. Bitcoin Trader will start trading Bitcoin on your behalf, based on the results of the market analysis carried out by its advanced algorithms.
Advantages and disadvantages offered by Bitcoin trading
Unlike what happens with mirror trading, with Bitcoin trading you will be in command of your operations, unless you decide to put everything in the hands of a bot like Bitcoin Trader. This has advantages and disadvantages.
Low commissions. Low fees apply when trading Bitcoin. Furthermore, there are never any fees for withdrawing your profits. The commissions are so low, that even if you sent millions of euros, you would pay less than 100 euros in commissions!
Excellent performance. Bitcoin was the first cryptocurrency to be launched on the market and that is why it is also the most popular. Today, many online stores also accept it as a bargaining chip and for this reason, withdrawing and spending it becomes increasingly more convenient.
Wide availability of platforms. Today there are many platforms such as eToro or Bitcoin Trader to trade cryptocurrencies. If you want to know more, you can read our reviews.
Volatile prices. The cryptocurrency markets are very volatile, perhaps the most volatile of all. For this reason, be prepared for big gains, but also big losses. In this regard, remember that it is not worth risking money that you cannot afford to lose.
Still few historical data. Unlike other markets, such as stocks, historical data is scarce because cryptocurrencies are quite new. Typically, historical data is used by professionals to trade with greater accuracy.
What is leverage used for?
Bitcoin trading is also very risky because the trading platforms use very large financial levers. What are these levers for? Simple, to invest in a transaction, more than what is actually placed on the market.
Let's take a practical example. If you open a position with 2x leverage (in the world of Bitcoin trading they can even reach 100x and beyond) your profit will be no more than 5% but 10%, assuming and not granted that Bitcoin has earned 5% in a session.
This makes us understand how huge gains are possible by exploiting this leverage, but also enormous losses. Trading by investing larger amounts of your capital is called "trading on margin". Not all platforms allow you to do this, for obvious reasons.
How much money can you earn with Bitcoin trading?
In reality, no one can answer this question precisely. There are many factors that can affect your earning potential, including:
- Your experience in the world of Bitcoin trading
- Your knowledge of crypto markets
- The capital invested
- How much time do you spend trading
- Applied strategies, etc.
According to an authoritative survey, conducted by one of the most authoritative financial magazines in the industry, 90% of people who start trading lose money and quit everything within a few weeks / months. In fact, experts say the cryptocurrency market is the hardest to master, especially for beginners. This is due to its high volatility.
The same survey states that a professional trader can transform € 10 into € 1000 in a very short time, taking advantage of very high financial levers. However, this is something no beginner can ever easily achieve.
If you think the price of Bitcoin is set to rise in the coming weeks / months, then you can open a long-term position and invest as much as 1000 euros. If Bitcoin is worth € 10.000 today, once it reaches € 20.000, your initial investment will be doubled!