Bitcoin Trader Guide – Full Bitcoin Trading Review
Bitcoin trading has taken the world by storm and for good reason. It is a highly liquid market in which there is great potential for making gains.
If you have been holding back because of the learning curve involved in mastering the art of Bitcoin trading, you should know now that there’s nothing for you to worry about. As it turns out, you do not have to be a trading guru to take advantage of this opportunity.
You might have heard of a Bitcoin trader – platforms that can successfully trade Bitcoin. In this article, we will talk about a number of such products and suggest some recommendations.
What are the advantages of bitcoin trading?
- Taking the Emotions out of Trading
Human thoughts and emotions often get in the way of profitable trading. This is especially true in the volatile bitcoin market where fluctuations are the order of the day. When trading using an automated system, this completely eliminates emotions from the art of trading.
It thus allows for the proper application of strategies. In turn, this ensures that all order execution goes according to the plan. Hesitation and overconfidence will no longer come into play as programmed orders are executed based on market rules. This means less anxiety for the trader and a lot more peace of mind.
- Fast Trading Means Lower Market Risk
Time plays a significant role in the outcome of trades. When trading manually, a trade may fall through before you can place an order. But when you automate the process, you can be sure of faster responses that can take advantage of volatile market conditions.
Automated systems generate orders the moment the market meets your specified trade criteria. Much in the same way as a delay of a few seconds can cost a trader massively, properly timed moves can mean significant gains.
- Handling Multiple Trades
A great way of spreading out risks in bitcoin trading is by using multiple strategies on multiple trades. However, doing so manually can be taxing. That is where automation software comes in.
Since the software can carry out numerous tasks in a fraction of a second, it makes it possible to optimize the opportunity. The higher the number of trades you make during a session, the higher the chances of profitability.
- Opportunities for Backtesting
One of the best ways to check the viability of trading strategies is by testing them on historical market data, i.e. backtesting.
By carrying out this exercise, you get an opportunity to evaluate as well as refine your strategies. Using an automated system makes it possible to do this with great ease and efficiency.
- A User-Friendly Trading Approach
This type of trading is suitable for both novice traders and professionals. There is no steep learning curve for novices. And for pros, it saves time, allows you to make more trades using custom strategies.
- Maintaining Discipline
Due to the fact that you adhere to established trading rules and automated execution, it is possible to maintain discipline. This is especially important in volatile market conditions where traders lose discipline all too easily. It also makes it easier to trade the plan and reduces the incidences of ignoring the rules.
This leads to consistency in trading, increasing the likelihood of success.
How Do I Become a Bitcoin Trader?
Now that the benefits of being a bitcoin trader are clear, how can you become one?
Here are the steps you need to follow to register a bitcoin trading account:
Step 1: Account Registration
Before you can start using the service, you will need to register an account.
The process is free of charge and straightforward. It involves providing your name as well as an email address and then verifying your account. You will also need to set a password to secure your account and provide a contact number. The verification process typically takes just a few minutes.
Step 2: Make Your First Deposit
After you complete the registration process, log in to the new account using the details you have provided. However, before you can start trading, you will need to make a deposit. For live trading purposes, the minimum deposit required is $250. It is advisable to limit your first deposit to this amount.
One of the most convenient ways to make your deposit is via a credit card. In order to do so, you may need to provide your card number, specify the type of card you have then enter its validity period and security code.
Step 3: Create a Demo Trading Account
However confident you are in your trading abilities, it is always advisable to start off with the demo account. Under this account, you get a chance to get acquainted with the features of the platform, the interface and the settings. It also gives you an idea of what it will be like to trade with real money.
Make good use of this first-hand learning experience by practicing trading with the demo balance. Try to clear this balance before starting to trade using real money.
Step 4: Start Live Trading
Now, you are ready to start trading. But before you do, you will need to customize the trading settings to your liking. Some of the settings you need to change include the amount to invest in every trade, the maximum daily trading amount and the target profit.
Think also about the trading pairs you want to invest in and set such parameters as stop loss and take profit limits. For more experienced traders, you can go to the manual options and set the indicators to match your strategy.
How Much Can a Bitcoin Trader Make?
As is the case with all forms of trading, there is no guarantee of a 100% win for every single trade. Notably, however, a bitcoin trader may have a considerably high win rate as the system shows 97% performance.
In order to increase your chances of successful trading, take note of the following tips:
- Get Trading Education
Though it might sound like you only need to make a deposit and let the system do the rest, you do have a part to play.
Before getting started, it is important to have an idea of the basics. Knowing how it all works will place you at an advantage when it comes to setting the trading parameters.
- Start Small
It is best to start with small amounts of money and gradually grow your investment portfolio. This is a great way to improve your trading skills and reduce the chances of failure.
- Never Invest More Than What You Can Afford to Lose
No matter what you are investing in, keeping in mind this basic principle will ensure financially responsible decisions.
Even when you have a high chance of making winning trades, losses are part of the game so it’s best if you are always ready to lose.
Are There Any Risks?
Though bitcoin trading has plenty of advantages, it is not 100% risk-free. Take a look at some of the downsides that you may need to take into consideration:
- Technical Mishaps
Even though everything seems simple and straightforward, theoretically speaking, the reality is sometimes different. Computing systems are prone to mechanical failure. For instance, if an order is on a computer and not the server, a drop in internet connection could hinder execution. Similarly, the host system may suffer from a crash.
The idea of setting trading parameters in the morning and coming back in the evening to check for profits may sound inviting. But it is not always practical. You need to monitor your trading system to avoid the potential of such mishaps. This will help you identify and remedy such issues fast.
In a bid to try and make the best moves, you might end up over-optimizing a strategy. This could involve continually ‘fixing’ the strategy in search of a 100% profitable outcome. Keep in mind that the overall objective is not perfection.
Making use of programmed software means that it is hard to work around issues related to market changes. These may be the result of political or economic events and other unforeseen occurrences.
What is Automated bitcoin Trading?
Also known as AI or mechanical trading, the system requires a trader to set specific parameters for entering and exiting trades. Once these are programmed into a system, a computer does the rest.
The trading process here is based on automated rules such as statistical arbitrage or technical indicators. Ultimately, the idea is to simplify complex manual trading and reduce the amount of time spent on the exercise. As a trader using this approach, you get the chance to set thresholds that align with your risk appetite.
How Do I Get Started?
Now that you have an idea of how it all works as well as the benefits and risks involved, you may be wondering how to get started. The first step would be to identify a reliable platform to use. Popular bitcoin trading platforms include Gekko, Cryptohopper and of course, the bitcoin Trader.
In order to minimize the risks involved, our top recommendation is a bitcoin trader paired with a regulated, licensed broker such as the one listed here.