How to Make Money with Bitcoin for Beginners (2024)
- Review of the Best Bitcoin Traders for Beginners for December 2024:
- Glossary of Key Terms for Bitcoin Trading
- What Does BTC Mean & How Does it Work?
- Bitcoin Trading vs. Investing in Bitcoin
- How to Buy Bitcoin
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- Reasons to Buy and Sell Bitcoin in December 2024
- Is Bitcoin Safe to Invest in – How to Trade Bitcoin with Minimum Risk in 2024?
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- How to Start Trading Bitcoin?
- How to Read Bitcoin Price Charts
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- Risks to Consider When Trading Bitcoin in 2024
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- Common Bitcoin Trading Mistakes
- Common Bitcoin Trading Strategies
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- Frequently Asked Questions
- Final Thoughts
Bitcoin was established in 2009. It was the world’s first cryptocurrency and is still the most popular and best known.
A cryptocurrency is a digital or virtual currency that is secured and traded using cryptography – a system of complex mathematical algorithms or codes.
Bitcoin was created by an anonymous person (or group of people) known as Satoshi Nakamoto. They aimed to establish an electronic cash system that was completely decentralised, operating on a peer-to-peer system.
Bitcoin is not owned by a central authority or government institution. It can be sent directly from user to user without any need for a middle-man, such as a bank.
Users can remain anonymous through the use of encrypted keys so bitcoin transactions cannot be traced back to them. Bitcoins can also be transferred and withdrawn anywhere around the world.
Bitcoin is notoriously volatile, as has been well-documented in the media in recent years. This high volatility means there is the potential to make good profit margins. But never forget this comes with risks.
With the added incentive of low entry levels, trading bitcoin has become an attractive option for many. However, anyone trading in any market should be aware that there are always risks involved.
In this article, we explore the basics of trading bitcoin, looking at how the cryptocurrency operates, reasons to consider trading bitcoin and what you will need to know before you get started.
Review of the Best Bitcoin Traders for Beginners for December 2024:
- AvaTrade – Best for Comprehensive Forex and Cryptocurrency Trading
- ProfitFarmers – Best Semi-Automatic Bitcoin Trader
- Uphold – Best Bitcoin Trader With No Commission or Account Fees
1. AvaTrade
Pros
- Highly regulated
- Free deposit and withdrawal
- No commission
- Low minimum deposit
- Social and copy trading
Cons
- Not available for US clients
- Inactivity fees
AvaTrade offers a user-friendly platform that caters well to beginners interested in Bitcoin trading. With its intuitive interface and educational resources, AvaTrade provides an ideal environment for those new to the world of cryptocurrency.
The platform offers access to Bitcoin trading alongside various other cryptocurrencies, allowing beginners to diversify their portfolios.
AvaTrade also provides educational materials such as webinars, tutorials, and market analysis, which are invaluable for novice traders looking to learn the ropes of Bitcoin trading.
Additionally, AvaTrade's customer support is available to assist beginners with any questions or concerns they may have, providing guidance and support as they embark on their trading journey.
Overall, AvaTrade's beginner-friendly approach and comprehensive resources make it an excellent choice for those looking to start trading Bitcoin with confidence.
2. ProfitFarmers
Pros
- Automated trading signals
- User-friendly platform
- Educational resources
- Guided trading
- Designed to cater to traders of all experience levels
Cons
- Dependence on signals
- Subscription costs
Best Semi-Automatic Bitcoin Trader
ProfitFarmers – The World's First Free Crypto Trading Co-Pilot
ProfitFarmers is a semi-automatic copy trading platform that produces AI trading signals combined with education and advanced tools to trade better and no trading experience is needed.
It is partnered with Binance.com exchange to buy/sell cryptocurrencies that are paired in BTC, USDT and BUSD.
Sign up now to use their platform for free and upgrade to its $21 trial offer for 21 days to access all their features!
- Copy trading signals
- Advance Features (Trade Guardian, Laddering Mode, Market updates, etc.)
- Trade Doctor/Session with one of their trading expert
- Pro trader 5x blueprint (helps you 5x your account)
- And many more
3. Uphold
Pros
- Easy account setup, ideal for newcomers
- Intuitive user interface and app
- Abundance of advanced trading features
- Ability to trade across various asset categories (cryptocurrency, fiat currencies, metals)
- Regular addition of new, low-liquidity altcoins
- Transparent and secure reserve system
Cons
- Limited charting capabilities
Best for: Diverse asset support
Type: App & web
Uphold stands out as a top choice for purchasing Bitcoin and other cryptocurrencies in the UK.
With over 10 million users spanning 150 countries, Uphold makes buying, trading, and storing assets, including Bitcoin and 250+ other cryptocurrencies, simple and secure. Uphold prioritizes safety and transparency, operating on a 100% reserve model to hold user funds securely.
Additionally, the platform regularly updates real-time asset and liability data, accessible to the public every 30 seconds, ensuring transparency.
Glossary of Key Terms for Bitcoin Trading
- Cryptocurrency – A digital or virtual currency that uses cryptography for security.
- Bitcoin – The first and most well-known cryptocurrency, created in 2009 by an unknown person or group using the name Satoshi Nakamoto.
- Altcoin – Any cryptocurrency other than bitcoin.
- Exchange – A platform where buyers and sellers can trade cryptocurrencies.
- Wallet – A software or hardware device that allows users to securely store and manage their cryptocurrencies.
- Bitcoin debit card – A payment card linked to a bitcoin or other cryptocurrency wallet that allows its holder to spend bitcoins and traditional fiat currencies at merchants that accept debit or credit cards.
- Cash out – The process of selling bitcoins for fiat currency, such as USD or EUR, in order to withdraw the funds to a bank account or other payment method.
- Market order – An order to buy or sell a cryptocurrency at the best available price.
- Limit order – An order to buy or sell a cryptocurrency at a specific price or better.
- Stop order – An order to buy or sell a cryptocurrency once it reaches a certain price.
- Stop loss – A type of order that automatically sells a cryptocurrency when it reaches a specified price to limit potential losses.
- Margin trading – A trading strategy that involves borrowing funds from an exchange to leverage a larger position in a cryptocurrency.
- Candlestick chart – A type of chart used to visualize price movements over time in a cryptocurrency.
- Bitcoin fork – A change in the protocol of the Bitcoin blockchain that results in a new version of the blockchain and diverges from the original version. This can occur as a result of changes to the consensus rules or a disagreement within the community.
What Does BTC Mean & How Does it Work?
Unlike paper money, bitcoins are not printed. Instead, they are ‘mined’ on computers.
Bitcoin mining requires high-powered computers and a lot of painstaking work, so miners are currently rewarded with 12.5 bitcoins for every new bitcoin they create.
Around 1,800 new bitcoins are mined every day and the most that can ever exist is 21 million – this was decided by Satoshi Nakamoto when they created Bitcoin.
As well as creating new bitcoins, mining serves to verify bitcoin transactions that have been made in the past.
Miners check that blocks of transactions are accurate before adding them to the blockchain – the blockchain is the technology behind bitcoin and is a series of blocks of data providing an immutable record of historical bitcoin transactions.
Crucially, this verification checks that bitcoins are not being duplicated. The blockchain acts as a ledger that anyone can download and check, but no-one can tamper with data that has already been added to the chain.
To earn their bitcoin, miners must verify 1 MB worth of transactions and solve a complex mathematical problem, also known as a ‘proof of work’.
To solve this problem, they must essentially guess a 64 digit-hexadecimal number, known as a hash, that is equal to or less than the target hash (hexadecimal is a system used in maths and computing that represents numbers using 16 different symbols, rather than the usual 10).
The chance of coming up with the correct hash is around 1 in 13 trillion and miners are racing against millions of others to be the first to complete a proof of work, so bitcoin mining is highly specialised and competitive.
Bitcoin Trading vs. Investing in Bitcoin
Bitcoin trading and Bitcoin investing are two different approaches to the cryptocurrency market.
Here are some differences between the two:
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Time Horizon – Bitcoin trading is generally focused on short-term price movements, while bitcoin investing is focused on long-term growth.
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Risk – Bitcoin trading is generally considered more risky than investing due to its volatility and short-term nature. Investing in bitcoin is considered less risky, but still carries some risk due to the unpredictability of the market.
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Strategy – Bitcoin trading requires a more active and hands-on approach, as traders need to constantly monitor price movements and make decisions based on technical analysis or other indicators. Bitcoin investing is a more passive strategy, as investors buy and hold bitcoin for the long term and do not typically make frequent trades.
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Knowledge and Skills – Bitcoin trading requires a higher level of knowledge and skills, as traders need to understand technical analysis, chart patterns and other Bitcoin trading strategies. Investing in Bitcoin requires a basic understanding of the technology and the market, but does not necessarily require advanced trading skills.
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Returns – Bitcoin trading can potentially offer higher returns in the short term due to its volatility, but also carries higher risk. Investing in Bitcoin may offer more stable returns over the long term, but may not offer the same level of potential returns as trading.
Ultimately, whether to trade or invest in bitcoin depends on your personal goals, risk tolerance and knowledge of the market.
Trading Bitcoin may be more suitable for those looking for short-term gains and willing to take on higher risk, while investing in Bitcoin may be more suitable for those looking for long-term growth and willing to take a more passive approach.
How to Buy Bitcoin
Don’t invest in unless you’re prepared to lose all the money you invest.
Buying Bitcoin involves several steps, and it's important to note that cryptocurrency investments are speculative and come with risks.
Before purchasing Bitcoin or any other cryptocurrency, ensure you have thoroughly researched and understand the investment.
Here's a general guide on how to buy Bitcoin:
Get a Bitcoin Wallet
Before you can buy Bitcoin, you'll need a digital wallet to store your cryptocurrency securely.
There are various types of wallets, including software wallets (online, desktop, or mobile), hardware wallets (physical devices) and paper wallets (printed or written records). Choose one that aligns with your security preferences.
Choose a Bitcoin Exchange
To purchase Bitcoin, you'll need to use a cryptocurrency exchange.
Some popular exchanges include Binance, Kraken and Bitstamp.
Research different exchanges and choose one that is accessible in your region and provides the services you require.
Sign Up and Verify Your Account
Create an account on the chosen exchange and complete the necessary identity verification procedures.
This typically involves providing personal information and verifying your identity with documents like a driver's license or passport.
This step is required to comply with Know Your Customer (KYC) regulations.
Deposit Funds
Once your account is verified, you'll need to deposit funds into your exchange account.
Most exchanges accept deposits in various currencies, including fiat currencies like USD, EUR, or GBP.
Place an Order
After your funds are deposited, you can place an order to buy Bitcoin.
There are different types of orders, including market orders (where you buy at the current market price) and limit orders (where you set a specific price at which you want to buy).
Specify the amount of Bitcoin you want to purchase and review your order.
Set Order Parameters
- Choose the amount of Bitcoin you want to buy. You can enter the amount in BTC or your preferred fiat currency (e.g., USD, EUR).
- Set your preferred order type. Common types include:
- Market Order: Executes immediately at the current market price.
- Limit Order: Specifies the price at which you want to buy Bitcoin. It will only execute when the market reaches that price.
- Review the order summary, including fees, before confirming.
Confirm the Order
After setting the order parameters, click "Open Trade" or a similar button to confirm your purchase.
Stay Informed
Stay informed about the cryptocurrency market and security best practices. Be cautious of phishing scams, and regularly update your wallet software for security patches.
Reasons to Buy and Sell Bitcoin in December 2024
While mining bitcoin is not a viable option for most, trading bitcoin is fairly straightforward once you understand the basic principles.
As mentioned previously, bitcoin’s volatility is one of its main attractions to traders. This means we can see rapid price swings both up and down, and if bitcoin traders anticipate the market correctly, they can make from some Bitcoin fast profits. Of course, they can also make significant losses.
Another benefit of Bitcoin for beginners is that you can trade around the clock. Most stock markets are limited to the working hours of the countries where they operate.
However, you can buy and sell Bitcoin on exchanges around the world so it is possible to trade day and night. And as bitcoin is a global currency, it is not affected by the financial stability or situation of any single country. In fact, it can go up while other markets are falling.
Finally, the relative lack of regulation makes it an easy market to get started on, as you do not need to go through a lengthy verification process.
Is Bitcoin Safe to Invest in – How to Trade Bitcoin with Minimum Risk in 2024?
Trading bitcoin can be risky due to its volatility, but there are steps you can take to trade it safely. Here are some tips to help you trade bitcoin safely:
Educate Yourself
The first step to trading bitcoin safely is to educate yourself about it. Learn how bitcoin works, the technology behind it and the factors that affect its price.
This knowledge will help you make informed trading decisions.
Choose a Reliable Bitcoin Exchange
When trading bitcoin, it's important to choose the best Bitcoin exchange that has a good reputation and takes security seriously.
Look for an exchange that has strong security measures, such as two-factor authentication and cold storage for your funds.
Use a Strong Password
When creating an account on a bitcoin exchange, make sure to use a strong, unique password.
Avoid using common passwords or reusing passwords from other accounts.
Enable Two-Factor Authentication
Two-factor authentication adds an extra layer of security to your account.
It requires you to enter a code from an authentication app or text message in addition to your password when logging in.
Keep Your Funds Safe
Don't keep all of your bitcoin on the exchange. Instead, transfer your bitcoin to a hardware wallet, such as a Trezor or Ledger Nano, which stores your private keys offline.
This will protect your funds from hacks and theft.
Start Bitcoin Trading with Small Trades
If you're a beginner Bitcoin trader, start with small trades to minimize your risk.
As you gain experience and confidence, you can gradually increase the size of your trades.
Use Stop-Loss Orders
To limit your losses, use stop-loss orders when trading bitcoin.
A stop-loss order automatically sells your bitcoin if the price falls below a certain level, which helps prevent large losses.
Don't Panic Sell Bitcoin
Bitcoin is known for its volatility, and prices can fluctuate rapidly. Don't panic sell if the price drops suddenly.
Instead, stick to your trading plan and use stop-loss orders to limit your losses. Choosing when to sell Bitcoin should be a calculated decision, unbiased by emotions.
Stay Up-to-Date
Keep up-to-date with the latest news and trends in the bitcoin market.
Follow reputable sources and stay informed about regulatory changes and market developments that could affect the price of bitcoin.
It's important to be aware of the potential risks before getting involved in bitcoin trading.
While it is true that Bitcoin can provide potentially high returns, it is also highly volatile and can suffer from extreme price fluctuations.
Additionally, the lack of regulation in the cryptocurrency market can make it vulnerable to fraud and scams.
It's important to have a sound understanding of the market and to be aware of the risks involved.
Traders should be prepared to potentially lose their entire investment and should only invest funds that they can afford to lose.
It's also important to use a reliable and trustworthy exchange, and to take security measures such as using two-factor authentication and storing cryptocurrency in a secure wallet.
How to Start Trading Bitcoin?
Step 1. Check Your Internet Connection
The first thing you will need to trade bitcoin is a good, secure internet connection.
Step 2. Choose a Bitcoin Exchange
The next step is to open an account on a bitcoin exchange. This is a digital marketplace where you can buy or sell bitcoin.
There are two types of exchange:
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Fiat to crypto – Here you can buy or sell bitcoin and other cryptocurrencies using fiat currency (for example, traditional currencies backed by the government that issued them). This type of exchange is generally beginner-friendly.
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Crypto to crypto – These are for exchanging one cryptocurrency for another and are generally set up for more experienced traders.
Some of the most well-known bitcoin exchanges include Kraken, Binance and Bitstamp, but as there are many available, it is important to do your research before settling on one.
Things you should check include:
- Safety standards – Several bitcoin exchanges have fallen victim to security breaches so you should check if the exchange you are considering is among those that have been hacked. Look for its privacy policies, user data encryption and whether it uses two-factor authentication.
- Transaction fees – Some exchanges will charge for transactions such as deposits and withdrawals while others will offer these for free.
- Usability – Make sure that you can easily navigate and understand the platform.
- Reviews – Look on forums such as BitcoinTalk and Reddit to find out if others have had a positive experience using the exchange.
Step 3. Open an Account
To open an account with a bitcoin exchange, you will need to register and go through a verification process to authenticate your identity.
Once your account is open, you can transfer funds to start buying bitcoins.
Step 4. Open a Bitcoin Wallet
Once you start buying bitcoin, you will also need a bitcoin wallet to store it in. This consists of a public address, which is where your bitcoins will be sent, and a private key which is used to unlock your funds and send bitcoin to others.
Unlike a bank account, when you store funds in a bitcoin wallet you are wholly responsible for their security.
There are different kinds of bitcoin wallets and the type you choose will depend on how you want to use your bitcoin and the level of security you want:
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Mobile – This runs as an app on your phone and can be used to pay for goods directly. It is useful if you are using bitcoin daily but is vulnerable to hackers.
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Web – This type of wallet is stored on an online server and controlled by a third party, such as a cryptocurrency exchange. Again, these are easy to access from any device with an internet connection. However, they are also at risk from hackers and there is the danger that the organisation operating the wallet might turn out to be untrustworthy.
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Desktop – These wallets are downloaded and installed on your computer, so your private key is stored in your hard drive. They are more secure, as there is no third party involved, but they are still connected to the internet so vulnerable to hackers, malware and viruses.
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Hardware – Using a secure hardware device to store your private keys is widely regarded as the safest way to store bitcoin. The most common form of hardware wallet is a USB stick.
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Paper wallets – This involves printing off your public address and private code in the form of a QR code which you will then scan to make transactions. While not vulnerable to hackers or malware, you will need to take good care of the piece of paper containing your details.
Step 5. Buy Your Bitcoin
The price you pay for bitcoin depends on the exchange you use, there is no single global price.
How to Read Bitcoin Price Charts
To read bitcoin price charts, follow these steps:
- Select a chart – Choose a chart that suits your needs, such as a line chart or candlestick chart.
- Choose a time frame – Select a time frame for the chart, such as hourly, daily or weekly.
- Analyze the chart – Look for patterns and trends in the chart, such as support and resistance levels, trend lines and chart patterns.
- Use indicators – Add technical indicators to the chart, such as moving averages, Bollinger Bands and Relative Strength Index (RSI), to help identify trends and potential trading opportunities.
- Monitor news and events – Stay informed about news and events that may affect the bitcoin price, such as regulatory changes or major adoption announcements.
Remember that reading bitcoin price charts requires knowledge and experience, and it is important to practice and develop your skills over time.
Once you have become more advanced, you may want to consider some of the following in your analysis:
Fibonacci Retracement Levels
Fibonacci retracement levels are a popular technical analysis tool used to identify potential levels of support and resistance in a market.
The levels are based on the Fibonacci sequence and are calculated by drawing lines between the high and low points of a trend.
Bitcoin traders use these levels to identify potential areas for buying or selling.
Volume Indicators
Volume indicators, such as On-Balance Volume (OBV) and Volume-Weighted Average Price (VWAP), can help Bitcoin traders understand the level of trading activity in the market.
High volume can indicate strong buying or selling pressure, while low volume can indicate a lack of interest or liquidity.
Moving Averages
Moving averages are a popular technical analysis tool used to smooth out price data and identify trends.
Bitcoin traders use different types of moving averages, such as simple moving averages (SMA) or exponential moving averages (EMA), to identify potential levels of support and resistance in the market.
Oscillators
Oscillators, such as the Relative Strength Index (RSI) and Stochastic Oscillator, are used to identify overbought or oversold conditions in the market.
Bitcoin traders use these indicators to identify potential reversals or changes in the trend.
Chart Patterns
Chart patterns, such as head and shoulders, triangles and flags, can help traders identify potential trend reversals or continuation patterns in the market.
Remember that technical analysis is just one tool for analyzing the bitcoin market, and it is important to consider other factors, such as fundamental analysis and market sentiment, when making trading decisions.
Risks to Consider When Trading Bitcoin in 2024
Bitcoin has become very successful over the past few years and many are rushing to capitalise on the opportunities it presents and get that Bitcoin fast profit.
However, cryptocurrency is still a very new market and remains highly risky. So while there is the potential to make money trading bitcoin, you should have a clear idea of the pitfalls you may encounter before getting started.
A Volatile Market
As mentioned previously, the Bitcoin price is constantly going up and down so it is very hard to predict what will happen in a given period.
While this can lead to healthy profits, it can also mean big losses if you misinterpret what is likely to happen next.
Fraud
As there is little regulation of the bitcoin market, security is a major issue. While many bitcoin exchanges are reputable, others are not and there have been instances of investors being defrauded by fake exchanges.
Cyber Attacks
As discussed in the previous section, bitcoin exchanges are very attractive to hackers and if your bitcoins are stolen by a hacker there is no way to retrieve them.
Reliance on Technology
Bitcoin is a digital currency completely based on technology. This not only leaves it more open to cyber-attacks and fraud but it also means that it is not backed up by any physical collateral, such as gold or property. If the technology fails or is shut down, bitcoin is worth nothing.
Emerging Market
Bitcoin is still in its early stages so there is little data or experience to draw on. There is a lot of uncertainty around how it will evolve in the coming years.
Common Bitcoin Trading Mistakes
Here are some of the most common bitcoin trading mistakes that traders make, along with tips on how to avoid them:
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Failing to do proper research – It's important to do your due diligence and research a cryptocurrency thoroughly before investing. Avoid making hasty decisions based on hype or speculation.
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Emotional trading – Making trades based on emotions, such as fear or greed, can lead to poor decision-making and losses. Stick to a trading plan and avoid making impulsive trades.
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Not using stop-loss orders – Stop-loss orders help protect your investment by automatically selling your bitcoin at a certain price level to minimize losses. Failing to use them can result in greater losses.
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Ignoring risk management – Proper risk management is essential to successful trading. This includes setting stop-loss orders, avoiding trading too much of your portfolio on a single trade, and using appropriate leverage.
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Chasing losses – It's natural to want to recoup losses, but chasing losses by making larger trades can lead to further losses. Stick to your trading plan and avoid making impulsive trades.
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Overtrading – Overtrading can lead to exhaustion, mistakes, and losses. Set realistic trading goals and avoid trading excessively.
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Not staying up to date with market news – Stay informed about the latest news and trends in the cryptocurrency market to make informed trading decisions.
Common Bitcoin Trading Strategies
There are different methods for trading bitcoin and other cryptocurrency and, in this section, we look at some of the most popular approaches.
It is also important to note that there is a difference between investing in bitcoin and trading it.
Bitcoin investors will buy the currency and then hold on to it for a lengthy period in the belief that its value will ultimately go up.
Bitcoin traders, on the other hand, are looking to make a profit by buying bitcoin and then selling it again after a short period.
They may do this by adopting one or more of the following approaches:
Bitcoin Day Trading
Day traders will make several trades during one day to benefit from short-term price movements.
Day traders may hold their assets for a few minutes or a couple of hours but the idea is always to sell them by the end of the day to make quick, small profits.
Pros
- Potential for High Returns
- No Overnight Risk
- Increased Liquidity
Cons
- High Risk
- Time-Intesive
- Transaction Costs
Scalping Bitcoin
This is similar to day trading but taken to the extreme. Scalp traders will buy and sell bitcoin very rapidly, holding their assets for a matter of minutes or even seconds before selling up.
They may operate around the clock, making hundreds of trading moves within a 24 hour period. As with day trading, the aim is to make many small, quick profits in a short timeframe.
Pros
- Quick Profits
- Reduced Overnight Risk
- Frequent Trading Opportunities
Cons
- High Transaction Costs
- Stressful and Demanding
- Risk of Overtrading
Swing Trading Bitcoin
This involves holding a position for longer than a day.
Swing traders will look at the bigger picture, studying trends in the market and trying to predict when price movements will begin and end.
Once they have entered the market they may hold their position for days, weeks or even a couple of months as they monitor the market before trying to sell up at the best time to profit from movements in price.
Pros
- Time Flexibility
- Reduced Stress
- Larger Profit Potential
Cons
- Overnight and Weekend Risk
- Transaction Costs
- Potential for Missed Opportunities
HODLing
HODLing meaning: a long-term investment strategy in which traders buy and hold bitcoin with the expectation of profiting from price increases over time.
Pros
- Long-Term Potential
- Simplicity
- Reduced Transaction Cost
Cons
- Missed Short-Term Opportunities
- Loss of Capitalization
- Risk of Downturns
Bitcoin Trend Trading
This is a long-term trading strategy in which Bitcoin traders identify trends and hold bitcoin for the duration of the trend to profit from price increases.
Pros
- Capturing Significant Moves
- Simplicity
- Long-Term Potential
Cons
- False Breakouts and Reversals
- Missed Opportunities in Raging Markets
- Entry and Exit Timing
Mean Reversion Trading
This is a Bitcoin trading strategy in which traders identify when the price of bitcoin has deviated too far from its average price and then buys or sells accordingly.
Pros
- Potential for Profit
- Contrarian Approach
- Defined Entry and Exit Points
Cons
- Timing Challenges
- Potential for Extended Deviations
- Market Trends and Momentum
Arbitrage trading
This is a Bitcoin trading strategy in which traders take advantage of price differences between different cryptocurrency exchanges by buying bitcoin on one exchange and selling it on another.
It's important to note that no single Bitcoin trading strategy is guaranteed to be successful, and traders may need to use a combination of strategies depending on market conditions.
Additionally, Bitcoin traders should always do their research and understand the risks involved with each strategy before implementing them.
Pros
- Risk-Free Profits
- Quick Profits
- Consistent Gains
Cons
- Limited Opportunities
- Execution Challenges
- Transaction Costs
If you have decided that you would like to trade bitcoin, the first thing to do is to find the right platform for you.
These are often known as bitcoin exchanges. There are several options to choose from and many of them will also offer demo accounts so that you can learn how trading works and the features of each platform.
Bitcoin is one of the most well-known and widely recognized cryptocurrency options available.
This makes it one of the best options for people to trade when they are beginning to learn about trading and markets.
Many bitcoin exchange platforms will offer users educational resources and demo accounts. These allow individuals the opportunity to learn about how trading works and practice developing their own strategies before risking real money.
There are several free courses available online which will offer you an introduction to the world of bitcoin. A simple “how to trade Bitcoin” google search will return plenty of results to help you in this matter.
Many platforms and exchange platforms will also offer educational resources, training tools and demo accounts to allow users to learn and practice their skills.
The first thing to do is choose a cryptocurrency exchange platform that suits your needs.
To make money with Bitcoin as a beginner, follow these steps:
- Educate yourself about Bitcoin and how it works.
- Create a secure wallet to store your Bitcoin.
- Buy Bitcoin from reputable exchanges or individuals.
- Monitor market trends and analyze the price movements.
- Decide on a strategy: long-term investment or short-term trading.
- Consider diversifying your portfolio with other cryptocurrencies.
- Stay updated on news and developments in the crypto space.
- Be cautious of scams and protect your digital assets.
- Consider using dollar-cost averaging to invest regularly.
- Stay patient and remember that investing in Bitcoin carries risks.
Bitcoin trading is never without risks. No matter how careful you are, you will always have the potential to lose money.
Having said that, taking the time to learn Bitcoin trading and using demo accounts to build strategies can help to boost your chance for success.
There are no risk-free Bitcoin trading strategies and it is important to recognize this before you invest any money. There are, however, some strategies and techniques which are considered to be lower risk than others.
An example of this would be copy trading which doesn’t require in-depth knowledge. One of the best ways for a beginner to develop your strategy is to use demo accounts which will enable you to practice trades without losing money.
Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.
There is a lot of contradictory advice when it comes to any kind of trading and it can be difficult to know who to trust. It is always recommended to choose reputable resources when you are thinking about investing.
If you choose a course, you should make sure that it is backed up by a recognized body.
It is usually a safe option to trust the educational resources that are available on platforms as these platforms are monitored and regulated.
Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.
HODL is a term commonly used in Bitcoin trading and it stands for "Hold On for Dear Life." It originated from a misspelling of "hold" in a Bitcoin forum post and has since become a popular mantra among cryptocurrency enthusiasts.
HODL signifies the strategy of holding onto Bitcoin long-term, regardless of market fluctuations, with the belief that its value will increase over time. It encourages investors to resist the temptation to sell during market downturns and maintain confidence in the long-term potential of Bitcoin.
As with any form of trading, you should never invest more than you can afford to lose. No matter how careful you are to build a strategy, there is always the potential to lose money. Before you invest, you should consider how much you can afford.
Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.
BTC is the abbreviation for Bitcoin. It is the ticker symbol used to represent and identify Bitcoin in cryptocurrency exchanges, financial markets, and online discussions.
BTC stands for the decentralized digital currency that was created in 2009 by an anonymous person or group of individuals using the pseudonym Satoshi Nakamoto.
Bitcoin is the first and most well-known cryptocurrency, which operates on a peer-to-peer network and utilizes blockchain technology for secure and transparent transactions.
Here is how can you short crypto, like Bitcoin, in simple steps:
- Open an account with a reputable cryptocurrency exchange that supports short selling.
- Deposit funds into your account.
- Borrow Bitcoin by entering a short position.
- Sell the borrowed Bitcoin at the current market price.
- Monitor the market and wait for the Bitcoin price to decline.
- Buy back the Bitcoin at a lower price.
- Return the borrowed Bitcoin to the lender, keeping the price difference as profit.
- Be cautious as short selling carries risks, and losses can occur if the Bitcoin price increases.
It is not directly possible to buy Bitcoin (BTC) with Apple Pay. However, you can follow these steps:
- Link your Apple Pay to a supported cryptocurrency exchange or digital wallet.
- Purchase Bitcoin using a linked debit or credit card within the exchange or wallet.
- Verify the transaction and confirm the purchase. Remember to check with the specific exchange or wallet provider for any updates or changes regarding the acceptance of Apple Pay as a payment method for Bitcoin purchases.
Bitcoin can be used to purchase a wide range of goods and services, including but not limited to:
- Online retailers and e-commerce platforms that accept Bitcoin payments.
- Gift cards for popular retailers and services.
- Travel and accommodation bookings on certain websites.
- Food and beverages at select restaurants and cafes.
- Electronics, gadgets, and computer hardware.
- Digital products such as software, music, and video games.
- Donations to charities and non-profit organizations.
- Luxury items, jewelry, and art from select vendors. Always check if the specific merchant or service provider accepts Bitcoin before making a purchase.
The value of 10,000 Bitcoin varies depending on the current market price. Please check a reliable cryptocurrency exchange or financial website for the most up-to-date Bitcoin price to calculate the value.
Final Thoughts
There has been a lot of media interest and hype around bitcoin in recent years, with reports of people making their millions by trading and investing in the cryptocurrency.
Bitcoin and other virtual currencies have made trading more accessible, with lower entry levels and the opportunity to trade wherever you are in the world as long as you have an internet connection.
As a young and volatile market, bitcoin offers exciting opportunities, but there are also many risks involved. With the potential to make a lot of money there comes the potential to lose a lot too.
If you are considering trading bitcoin, you should make sure you have learned all you can about the market, researched your trading strategy and identified a reputable exchange platform. And, as with all kinds of trading, you should never invest more than you can reasonably afford to lose.
WikiJob does not provide tax, investment or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal.