You may have heard how others have purchased Bitcoins in the past and ended up selling them for a huge profit. It is possible and there is no reason why you can’t do this too.
There are certainly experienced Bitcoin traders out there that make a lot of money from their trades.
They may not be successful with every trade but overall they make consistent profits. The thing is that trading Bitcoins successfully is not an easy thing to do. You really have to be prepared.
It is not impossible for someone just starting out with Bitcoin to be successful. But you have to be financially and mentally ready for this. Bitcoin trading is all about high risk and high reward. The key to success is to buy at low prices and then sell at higher prices. While this is obvious it is not that easy to do.
A lot of newcomers to Bitcoin trading end up panicking when they are making trades. After all they are dealing with digital currency that is worth thousands of dollars. Panic levels will rise even more if you are using your savings to trade or your pension fund!
Strategies for Bitcoin Trading
If you are really interested in Bitcoin trading then the first thing that you need to realize is that you need to use common sense and maintain self control. Don’t go into it thinking that you are going to make a ton of money in a day. If you get too greedy then you are very likely to fail.
Learn and get as much Practice as you can
You need to learn everything that you can about Bitcoin trading before you start to do it for real.
Knowledge is great but there is nothing like experiencing how Bitcoin trading works in the real world.
To give yourself a good start with Bitcoin trading sign up with a cryptocurrency exchange that will allow you to use a demo account to experience how things work in the real world. You will see real time prices for Bitcoin and it will help you to get used to the Bitcoin trading interface.
You need a Trading Plan
Successful Bitcoin trading relies on having a good strategy in place. Sure you might get lucky with your first few trades, but sooner or later your luck will run out and this can be very expensive.
One of the biggest mistakes that newcomers to Bitcoin trading make is that they follow the news, see that a lot of other people are making Bitcoin trades and this compels them to do the same thing.
Experienced traders like this because it will force the Bitcoin price up and they can profit from previous purchases.
Don’t follow trends blindly. Create a plan that defines the price that you should purchase Bitcoins for and the price that you should sell them at to realize the profit that you want. If you stick to a plan like this then you will significantly reduce the risk of panicking if you suddenly see prices fall.
Practice with Small Amounts
When you are starting out with Bitcoin trading only invest small amounts with trades. This is all part of your learning curve and early training. No matter how good an opportunity seems resist the temptation to go “all in”.
Use your demo account to perform a lot of trades before you start spending real money. If you clean out your demo account then this is not a big deal but losing all of your real money is completely devastating.
Keep your Emotions in Check
The thought of losing money can be really alarming to you. We have told you many times in this guide that Bitcoin is volatile and in one day the price can go down by a significant amount. The good thing is that the price can rise significantly in no time at all as well.
You must keep your emotions in check if you want to be successful with Bitcoin trading. Thinking logically will always be the best strategy. Never let your emotions determine which Bitcoin trades you should or shouldn’t make.
It is understandable that you will be excited about the opportunities that Bitcoin trading offers. But we strongly recommend that you take this a step at a time and learn everything that you can about trading.
Use a few demo accounts to practice with before you start investing real money. The more accustomed you are with the trading environment the better. If you make mistakes with your demo account work out what went wrong and avoid making the same mistake in the future.
