Trading Bitcoin – Is it profitable?
You need to have a certain mindset to be profitable
Many people ask the question if that trading Bitcoin and other cryptocurrencies are profitable. Everybody is different and has different methods and risk tolerance and in trading and investing you need to have a certain mindset. You can’t just go in and expect to profit in the beginning and become rich in a short period of time. Investing and trading take time to learn, do wrong decisions and learn from them. Therefore you should take a steady approach filled with patience. Don’t be one of the people who rush to leverage trading platforms to trade without any knowledge. If you plan to do this just because of excitement from the potential profits that there are – stop. Educate, learn how to read charts, learn about positions and learn about the leverage trading platforms like PrimeXBT, Bitmex, Bybit, and Deribit.
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Don’t go in the market expecting not to have losing trades in the beginning. And don’t quit after you have made consecutive bad trades, analyze your mistakes and start over. This is why you need to have the proper mindset to become profitable while trading Bitcoin and altcoins. It takes courage to accept that you may lose, to learn and willingness to continue. Educating is the most important step in trading and trying to apply it.
Trading Bitcoin successfully – What do I need to learn?
Let’s start with the most basic thing, first, you should research the exchanges on which you will trade cryptocurrencies. Doing good research will help you choose the right platform for you and make you feel more confident. All of the trading platforms have something different to offer for different types of traders. Different leverage designs, lower fees, and better UI. On our website, you can find different reviews for exchanges and educational articles. As we want you to learn everything that is needed so you can be a profitable trader.
Trading Bitcoin can be exciting and scary at the same time
Trading Bitcoin with a proper understanding of the market
You need to see how the market behaves and get used to the fact that the market is very volatile. Read about cycles so you can have a broader understanding as a whole. Trading Bitcoin also means that you are trading the most scarce asset on the planet. Don’t forget this – the volatility in the near future may become mindblowing as we witness new money entering the market.
By getting involved in Bitcoin trading you are also getting exposure to an asset with amazing characteristics. An asset that is limited, decentralized, independent from central banks, immutable, global and neutral. These are some of the reasons why we see interest growing globally year after year. One other reason that we will see more volatility coming is that the cryptocurrency market cap is still very tiny. And in the next bull run, we will witness institutions entering heavily in the market.
Knowing the leverage trading platforms
As I said at the beginning of the article you need to research leverage trading platforms. You can start your research with the trading fees on the platform.
As every platform has a different fee structure you need to have at least a basic knowledge how much will it cost you to trade on that platform. This is why we at bitcoinbuyersguide have compiled an article about the fees on different leverage exchanges which you can see here. Knowing your fees will also help you to calculate your profit. For you to trade cryptocurrencies effectively you need to calculate accurately. And you don’t want to end up paying more than you should because you have been on the wrong exchange for you. Here you can read how to properly calculate your profit on PrimeXBT.
After you do your research on the fees of the trading platforms you to check the security. It is a very important factor without exception as we are talking about a lot of money traded and kept on the platforms. You as a potential trader need to see which one has the sufficient security so you can trust it with your Bitcoins.
After that comes the stability of a platform as you want to have full control of your positions. Without stability, a platform is doomed as you don’t want to be liquidated because you couldn’t adjust your position. Of course, no platform is perfect but there are very stable and secure exchanges out there.
For profitable trading, you need to feel at home and this is maybe the most pleasant part of your research. Researching the UI (user interface) so you can trade in an environment that you find effective and good looking as we are in the 21st century. Considering that you may end up staying for long hours to trade, you would like to have a nice interface. An interface that is easy to navigate and have everything you need so you can have uninterrupted trading sessions.
Is there more to trading?
If you want to have profitable trading sessions you need to learn how to properly manage positions. Adjusting a proper stop-loss and take-profit with reading charts and understanding the indicators. In the beginning, you should read about RSI, MACD and Ichimoku Clouds. Those indicators will help you in making better decisions when you open positions. Knowing when to open and close position is crucial and you must always have a tight stop loss set up especially if you are trading with high leverage. We have an article explaining why managing positions properly is very important which you can read here.
Trading Bitcoin can be very profitable due to the exchanges offering the needed instruments like PrimeXBT, Bitmex, Bybit, and Deribit. But the most important factor is you, as you make the decisions, you open the positions and you decide how much capital you will use. You need to learn to manage properly your positions and margin, know when to open and close your positions. Furthermore, this is a long learning process and don’t get discouraged if your first trades are not successful. The market is there, volatile, perfect for trading and making big profits. Go use it!
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