Bitcoin trading means the method or steps through which it is possible to speculate on the price movements of the encrypted currency in the market, that is, buying Bitcoin through the exchange in the hope of a price increase so that traders use financial derivatives such as contracts for difference in order to speculate on the rise and fall of prices, and the following are the steps of trading a currency Bitcoin:
How does the price of bitcoin move?
Knowing the factors that affect the price of Bitcoin and then tracking them and seizing the right opportunity is the first step in the trading process, and among these factors; Supply of Bitcoin, advertisements and user movements, breaking news in newspapers, or developments in the integration of Bitcoin into payment systems that may increase or decrease the amount of demand.
Determining the method of trading Bitcoin
There are many ways in which Bitcoin can be traded, and the role of the trader in this step comes by choosing the method that suits him, and the methods of Bitcoin trading are as follows:
Bitcoin daily trading
Used by traders who want to profit from short-term price movements so as to take advantage of the daily fluctuations of the currency, this method means opening a position for one day only ie no overnight funding fee.
Directing Bitcoin trading In this method, a position is searched for a position in line with the current situation in the market for the Bitcoin currency.
Hedging strategy (HOLD)
This method means buying Bitcoin and holding it in the event that you have a particular or almost certain view of its price in the long term.
Determine the next move
(Buy or sell?) Derivatives trading allows both buying and selling, which can be determined based on market data; Buying means expecting a price increase and selling
Expect a lower price
Monitoring the market from time to time. The buying process is carried out if the price is expected to rise, while the sale is carried out if the price is expected to decrease, and this is what needs monitoring and tracking of the market, its sentiment and the latest moves to make sure that things are going as expected.
Close the position to take profit or reduce the loss
The trader may reach a certain level of satisfaction with the profits or a level that puts him at risk of losing, and here he can close the position which will transfer the profits to his trading account while the losses are deducted from the balance.
How to buy bitcoin
When buying Bitcoin, the value of the currency is exchanged with a person, company or institution within specific protocols and with almost absolute confidence, which opens the opportunity for a new digital world in the world of currencies, and Bitcoin can be purchased mainly through the following steps:
Choosing where to trade cryptocurrency
This is the first step of the process of buying bitcoin where sellers and buyers meet to exchange currencies with money, and here the method of exchange is determined that depends on experience and knowledge of the market, as each merchant can choose what suits him, and the purchase is often made through a special wallet or through the platforms for buying .
Select the payment option in the second step
How to fund the account or how to pay is determined, it may be from a current account, cryptocurrency wallet, credit card, PayPal and others, as the method is chosen depending on what the merchant owns and the appropriate fees imposed on each method.