Hey guys, today in this article, we will discuss How to Invest in Bitcoin: A Bitcoin Tutorial for new Investors. So keep reading.
The cryptocurrency market is currently down with Bitcoin, Ethereum, Ether, Polkadot, etc., all prices down after the market skyrocketed in 2021 November. However, with the prices of cryptocurrencies in a downward trend; it is perhaps the best time to invest at cryptolina.com. Ever since the price hype of Bitcoin in November 2021; when the market cap touched almost $3 trillion, it has shrunk to $949 billion. Despite the consistent downfall in the price; many experts believe that the value of Bitcoin is going to rise. Dileep Seinberg, CEO, and founder of MuffinPay, a bill payment module, shared his thoughts “By December end or January 2023, Bitcoin may rise to an all-time high of $70,000”.
So let’s start our Bitcoin tutorial:
Bitcoin Trading Strategies
Bitcoin trading needs to be planned and strategically implemented to fetch benefits out of the investment. Unmindful investments, with no prior research on potential digital currencies in the market, Bitcoin’s current market cap, and previous price movement records, could only lead to a blind end with little hope. However, not only on the market study but good and profitable trading techniques are also developed from experience; based on the amount you plan to invest, etc… Here are a few common trading strategies based on your holding time after purchase till selling off the cryptocurrency.
Day-trading bitcoin is the strategic trading plan which is referred to buying and selling of bitcoin within the same day. The strategy aims to capitalize on the swift market movement throughout the day, and the purchases are made as per the movement speculations. No position is therefore kept overnight; all transactions are completed and closed within the trading timing of the same day.
If you are a dedicated trader with enough time and patience to monitor the movement of the market and the digital currencies throughout the day; perhaps day trading is a smart way to build a career. However, initially, you may not profit much; but learning and understanding the market helps to evolve as a smarter player.
Once you let go of your preference of completing a transaction within a day and maintaining your trade margins throughout the day, you need to hold on to your digital tokens for longer. Once you hold, you need to look for a trend reversal. You look for prices to go high if you have bought your altcoins or Bitcoins at a lower rate. In case of purchase, you wait for lower rates.
The swing trading technique is primarily based on technical analysis of the market. Nowadays, numerous tools and software are available to gauge market movements, trends, and tracking for Fibonacci retracement or MACD (moving average convergence divergence) to enhance swing trading.
Risk management techniques to needs to be learned before entering the crypto market. Whether you are engaging in day trading or have time in hand to invest in a swing trading strategy; risk management is an inevitable point to ponder upon while investing in cryptocurrencies. At first, you must make sure you do not invest more than 5% of your total savings profile. Even after that, it is important to set a stop loss, which helps you to limit the range or amount of risk in every trade.
- It is important to maintain a standard of risk management. Thereby experts often recommend limiting the risk amount to around 1-2% of the total trading capital per trade.
- Overcome addiction. If you have suffered consecutive losses in 3 or 4 trades; it is important to take a break and analyze your trading pattern.
- Keeping a huge amount in your wallet might not be safe. Therefore make sure you transfer only a limited amount from your cold wallet or offline wallet to exchange for trading.
- Use only trusted and verified exchanges for trading. Do not let high transactions turn you down from trying a reputed exchange.
Trading is easier and more convenient only when you invest a little time in understanding the market; its previous trends, expert opinions, etc. Trading platforms like BitQS are integrated with analytical tools and software to facilitate traders. Besides, you must also look for an exchange with both hot and cold wallets to keep your assets safe while you are not transacting all amounts. I hope you like this article on How to Invest in Bitcoin: A Bitcoin Tutorial for new Investors.