In recent years, Bitcoin Trading has been growing. Many users who obtain bitcoin to hold for a long period. However, many users trade their coins frequently with intra-range strategies, day trading, leverage trading and more.
Sometimes, trading can be confusing, and within the exchange environment, there are many things to consider.
The World of Bitcoin Trading
Some users would consider the digital assets to be volatile because the often change in the bitcoin’s price. In fact, the change in the value of most currencies worldwide quite a lot. The ups and downs in the price are the way users make money trading fiat currencies, and commodities. Cryptocurrency exchanges and bitcoin trading have been grown significantly since the early days. The vast array of exchanges offering different trading services and multiple trading techniques. Nowadays, the various surroundings of the bitcoin trading ecosystem and the expectation of these exchange markets will be discussed.
To Technically analyze and predict Bitcoin’s price movements, the candlestick is the most popular chart. Different from the bar chart, in the short-term and long-term outlooks, there are different aspects. Candlestick chart shows the price of each trading session’s open, high, low and closing positions. As can be seen from the process of charts, analysts can use the trends of lines, and technical indicators to try and predict the movement of price. However, in the trading world, no predict is for certain.
Day trading and Intra-range Strategy
Day trading – trade speculated within the same day, which is quite a popular style of bitcoin trading worldwide. It means traders close their position at the end of the day or within a specific time frame. Intra-range trading is relatively the same and traders use shorter periods to get profit off scalps and sudden fluctuation in the value price of Bitcoin. Day trading strategies are driven by profit and can bring a lucrative occupation of significant loss of wealth. To take profit daily, this trading ways need to research and practice to perfect the skills.
Shorting, Long Bets, Options, and Futures Trading
Within an arranged period, this trading involves a trader placing a wager that the Bitcoin’s price will be lower or higher. In recent times, a trader got some attention for betting on a $10 million bitcoin short position and got liquidated because the price increased significantly. It means a trader placed a bet that the price would drop, but lost, leaving the trader to buy back the bitcoin at market rate. Long positions are the opposite of the trader wagers that the price will be higher over time. In essence, this trading type is like buying a good and hope the price of goods will decrease or increase with the trader profiting from the difference.
There are various methods of trading bitcoin options, futures, and speculative bets. Although a few exchanges offering these types of trades, all of them require collateral in the case of customer loses. Moreover, the bitcoin futures trading would be risk and the traders should practice their skills when entering into these types of bets.
Bear and Bull Markets
Market conditions are considered as “bear” or “bull” and sometimes using the phrases “bearish” or “bullish”. When bitcoin’s price value decreases intro to a downward trend with increased selling and short position. The increase of buying, a price rise, and traders placing long bets – a bull market condition.
During a bullish market trend, the price rises steadily and entry points often decrease. During a bearish market trend, investors wait for extended panic selling and entry points. 2 types of the market often bring a brief description of bitcoin’s price value and whether the price has a downward trend or upward trend.
Trading is not easy
Although trading is assumed as easy money, there are significant risks associated with these types of change. Firstly, many traders leave their bitcoins on exchanges. It means they leave their funds in the hand of the exchange with expectations the business is responsible and secure. In recent Bitfinex hack and the infamous Mt. Goux disaster – the hard way that trader often learned. Remember: If you don’t have your private keys, you don’t own your bitcoin.
On the flip side, trading can be lucrative with a lot of practice – a popular environment in the bitcoin space. Moreover, to gain more bitcoin with their profit lots of people trade altcoins.
Remember: In trading, predictions are often wrong and can be risky and requires much practice and even plotted charts, technical indicators.