Tech » Cryptocurrency

The Only Bitcoin Trading Guide You Need!

Ryan Green | Updated On December 20, 2023

Bitcoins have taken the crypto investment industry by storm and it is a highly volatile yet valuable cryptocurrency to make money. Investors must have thorough knowledge about Bitcoin trading to purchase, trade, and sell the asset. 

If you find bitcoin trading intriguing and want to learn all the ins and outs, this blog is your friend. 

Here we have discussed the step-by-step process of Bitcoin trading, and all the fundamentals that investors need to know. So, without any further ado, let’s get into it!

What is Bitcoin Trading?

Bitcoin trading is a procedure of buying and selling BTC through Crypto trading platforms like BitAi Method. 

There are many ways to trade BTC which include, via derivative financial instruments like Contracts for difference. 

Trading via this method offers great liquidity, and flexibility to the investors depending on the price change. 

Simply put, Bitcoin trading is the process of buying, and selling BTC for profit gains. 

Bitcoin trading might sound simple, but it needs a deeper understanding of the industry.

 Moreover, one needs to be well-equipped with crypto trading tips for beginners, rules, and regulations and must be familiar with the risks. 

Now that you know what bitcoin trading is, let’s go ahead and look at the steps for the same. 

How to Do Bitcoin Trading?

After gathering enough information and knowledge, you can proceed with Bitcoin trading. We have listed the step-by-step guide below. Just follow through the entire process. 

Step 1: Sign up for a cryptocurrency trading platform.

The first step that one has to do for Bitcoin trading is to open an account with a crypto trading platform like BitAi Method or Crypto.com. 

All you need to do is choose your preferred platform with a user-friendly interface, create your account with your personal information, verify your identity, and fulfill the Know Your Customer (KYC) process. 

Step 2: Add money to your account.

Once you have created your account, navigate through the account dashboard to get familiar with the functions. 

From here, go to the banking section to add your digital wallets or bank account. 

After adding the payment method, add money to your platform wallet. The crypto platforms accept all the major bank accounts and payment wallets.

Step 3: Choose BTC to invest.

Now that you have money in your wallet, explore the Bitcoin charts and other cryptocurrencies available on the platform. 

Choose the quantity of Bitcoins you want to purchase, and select the mode of payment to complete the transaction. 

Step 4: Purchase Bitcoins and know about trading bots.

Your purchased Bitcoins will be stored in your wallet. Now you have to analyze the market data, graph, and price to start trading Bitcoins. 

You can also take support of Trading bots that help to make detailed market analysis and future predictions. Or, you can trade with your strategies to make profits. 

Step 5: Manage and store your Bitcoins.

Depending on the holding period, there are two wallets available. If you are an active trader, you need to store and manage your assets through the exchange wallets. 

However, if you wish to hold the BTC for a longer period, you can even purchase more secure Bitcoin wallets available in the market. 

So this is the entire process of Bitcoin Trading. Not everyone can make profits with this method as it involves a very strategic framework.  

Let’s look at some of the best Bitcoin trading strategies in the next section. 

Bitcoin Trading Strategies 

These are the Bitcoin trading strategies that you can use to make profits in the cryptocurrency market:

This is the most common trading method, also known as intraday trading. In this, the traders enter and exit the positions within the same day. It is suitable for people who want to make profits with BTC in the short term. 

Please note that Crypto is a highly volatile market, so the profits and losses depend on market fluctuations. 

Bitcoin’s swing trading strategy is based on assumptions where the traders can take advantage of both the ups and downs of the market. 

It is less stressful than day trading but requires a lot of experience to get the idea of fluctuations. 

It is also known as trend trading and is ideal for long-term investors. In this strategy, you purchase BTC and hold it for a long period to make profits in the future. 

With this, the market movement is easier to predict, but the investors can only get profits after a certain period. 

It is the riskiest Bitcoin trading strategy where traders focus on extremely short market periods. You can make small yet frequent profits with every market fluctuation. 

So these are the strategies you can incorporate in your Bitcoin Trading game. Moving ahead, let’s understand the factors affecting Bitcoin Trading. 

Factors Affecting Bitcoin Trading

Some key factors play a huge role in Bitcoin trading. Let’s discuss each of them here. 

• Market Capitalization Value: Bitcoin being the largest and one of the most expensive cryptocurrencies in the world has the biggest market capitalization. These statistics make it the most sought-after crypto investment for a long-term goal. 
• Key Events and News: Any important news or event in finance or other industries directly affects cryptocurrency prices and market movements. The overall Bitcoin market is affected by key events. 
• Supply and Demand: The crypto market works on the principle of demand and supply. There are a finite number of Bitcoins that will ever exist, so the market price depends on when there are BTCs available or unavailable in the market. 

While Bitcoin Trading holds big opportunities, it is still quite new and largely fragmented.

 However, if you want to start your Bitcoin trading journey, we are sure that this blog will help you with the process. 

Please make sure to learn everything about the investment terms, market volatility, crypto performance, and market risks before trading.