The question I am most frequently asked is how do I make money trading Bitcoin. So this post is all about the ways to maximise the money you can make trading bitcoin.
Bitcoin is a really exciting market to be trading right now, but it’s important to really plan your trades, otherwise you could lose a ton of money if you don’t make smart trading decisions.
Simple Steps To Start Trading Bitcoin
If you are new to Bitcoin or new to trading financial markets, then these 3 steps will help you get started. As a professional trader and trading educator, my aim is to help people go from beginners to competent traders as quickly and easily as possible. Follow these steps and you’ll be well on your way to profiting from trading Bitcoin.
STEP 1 – Before you can start trading Bitcoin, you need to acquire your first coins.
If you’re in the U.S. one of best ways to do this is to open an account with CoinBase. They link directly to your bank account, so it seems to be the quickest and most secure way to purchase Bitcoin. Another good option if you prefer to use cash, or you are in the country not supported by Coinbase is to use Localbitcoins.
STEP 2 – Open accounts with all the major exchanges after you bought some initial Bitcoin at Coinbase.
There is typically a verification process that takes some time, but it’s well worth the effort. I think it’s a good idea to have some Bitcoin at different exchanges to mitigate risk, and have multiple options to execute trades. An exchange that offer Bitcoin plus multiple other cryptocurrencies is HitBTC and if you wish to trade regular commodities like gold, shares like Apple and Forex using only Bitcoin then WhaleClub.co is a good option. Both of them offer demo accounts to try out trading without any risk.
STEP 3 – Decide on your Bitcoin trading strategy.
Before you start trading you have to decide if you going to be a day trader, swing trader, or hold for the long-haul? Personally, I look for trades that show the potential to make at least 10% – 20%. If you’re trading for anything less than that, then the spread and fees will eat away at your profits. Make sure you keep reading the articles and posts on this website to find the best trade setups and how to pinpoint the best trade opportunities.
For charting, I like to use Cex.io.
One last thing, make sure to stay away from Bitcoin trading scams like trading robots. Anything that offers to make you a ton of money on autopilot is usually a scam.