In the past, the Forex market dominated the world. People used to trade different currency pairs just to make a consistent profit.
Many people have changed their life just by learning to trade the Forex market. Things have changed dramatically and many reputed brokers are allowing the traders to trade bitcoins. If you closely analyze the market data, you will notice the market volatility of Bitcoin is much higher than the regular Forex major pairs. When the volatility is very high, you can expect to make a big profit without having any trouble. But this statement is only applicable for the skilled traders.
Becoming skilled at cryptocurrency trading requires time. Many have tried to learn crypto trading but failed miserably. To boost the profit potential and create a well-balanced trading method for cryptocurrency trading, you should consider this article as a guide. It will allow you to learn the art of Bitcoin trading in less a month.
Learn about the support and resistance
The most important factors in the trading industry are the support and resistance level. Support and resistance level are the two most important levels where the traders buy and sell the asset. But buying and selling the asset at the support and resistance level is a very tough task. Many people have tried to execute the trade at these important levels but failed miserably. The only reason for this is the time frame. If you find the support and resistance level in the lower time frame, you are taking the trades in the minor levels. But if you analyze the data in the higher time frame, you are taking trades at the major level and you have a high chance to win from that particular trade setup.
Opening a trading account
To trade Bitcoin, you need to find the best bitcoin trading account. The professionals suggest trading bitcoins and other digital assets with the bigX platform as they offer a well-balanced trading environment. They are one of the most reputed brokers for cryptocurrency trading. Without using a professional trading environment, it will be tough to know the details of the price feed. The traders usually lose a big portion of the capital as they don’t have the skills to deal with the market dynamics. To be a good trader, you must learn to trade the market like a pro. For that, you need to open the trading account with a reputed broker.
Creation of the trading strategy
Creating the trading strategy is a very difficult task. If you closely analyze the trading history of a successful trader, you will notice, most of them are taking the trades by using a strategic approach. The system is not that complex to understand as they depend on the support and resistance level. Open a paper trading account and study the historic price data. Try to find a suitable way by which you can speculate the price movement of the digital asset. If it seems hard, you should spend some time studying the post of the successful trader and it will help you to curate a simple trading method. But don’t copy paste a trading strategy as it never works.
Riskless than 1%
If you follow the above steps, within 3 weeks you will be ready to trade Bitcoin in the global market. But you have realized that you don’t have sufficient knowledge of technical and fundamental factors of the market. So, stop using the famous 2% rule of money management and lower down the risk to 1%. By trading the market with low risk, it will help you to earn more money, and eventually, it will improve your trading skills to a great extent. So, be cautious about the risk profile when you trade the digital asset.