How to trade Bitcoin

Surely you have heard about the innumerable benefits of investing in Bitcoin and the characteristics of these crypto assets.

You will also be aware of the risks involved in doing so, of the high volatility that characterizes cryptocurrencies, and of the complexity that some exchange platforms display.

Gaining experience in the crypto world implies exposing yourself to losses and suffering them, but it also allows you to operate with knowledge of the future and increase the chances of success of your operation.

However, nobody swims taught and making your way in the intricate world of cryptocurrencies is important to gain experience .

However, doing it without any advice is crazy, and you should not invest randomly or, at least, without a plan drawn up that allows you, at least, to create a series of plausible objectives in the short and medium term .

Do I need to be taught how to trade Bitcoin if I have experience?

Without a doubt. Although you may think that you are an expert in crypto investments, the chances are that you still have a lot to learn.

The changing conditions of the crypto market mean that even the best investors in the world are exposed to losing their money due to a bad move , so do not reject help or advice if you have it within your reach: it can help you avoid a bad drink in the future.

Even if you are able to navigate the main exchanges, do not think that you know everything about the crypto market: it is relentless with those who invest without meaning, and it is always better to err on the humble than to be conceited.

In any case, even if you consider yourself an expert investor, we recommend that you take a look at the following guide that we have prepared in which we tell you everything you need to know about Bitcoin and how to trade with the longest-lived cryptocurrency of all .

And do not forget that, above all, security comes first and your steps in the crypto market should only be guided by references and common sense . Distrusting the system is the only way that your assets do not end up in the hands of hackers.

What factors influence the price of Bitcoin?

We are going to start by talking about the fluctuations in the value of Bitcoin , one of the main reasons why an investor wins or loses money.

Although they are not the only ones, they are decisive for the price of a Bitcoin coin to rise or fall and, therefore, the investor ends up with a positive or negative balance at the end of the day.

Keep in mind that even knowing the factors that affect Bitcoin, its value can enter a sudden trend change for no apparent reason.

For starters, the supply of Bitcoin has a lot to do with the current price of the asset. The fact that Bitcoin was designed as a finite asset made many investors not understand why they should bet on it, but the truth is that by creating a controlled scarcity, its value is kept high.

This, however, has not freed bitcoin from suffering significant losses . However, the upward trends experienced have also managed to reverse the negative effects of the devaluation.

There are experts who assure that BTC's value losses should not be feared, since there would be indications that would reflect a periodicity between the devaluation peaks and the maximums of its upward trends.

Another decisive factor that inevitably affects the value of Bitcoin is bad press. Any published news that speaks negatively about the safety, value or longevity of the asset can have an immediate negative effect, starting to lose value almost instantly.

Integration is another important trait. It is essential that Bitcoin is integrated , even partially, into the main payment systems to guarantee its long-term viability. If not, the price of the cryptocurrency will gradually fall.

You must understand one basic thing that governs the price of Bitcoin: something only has value when people give it to them. That is why the BTC is so sensitive to appreciations: because its market value depends, to a large extent, on them.

Finally, we must take into account the key events. Some regulatory changes or certain security breaches that compromise the integrity of any of the aspects of Bitcoin will cause the asset to lose value.

Trading styles and strategies

Bitcoin trading broadly comprises two blocks or categories. On the one hand, we would have the purchase of Bitcoins in the crypto market , in order to sell them at a later time when the price has increased.

Thus, it will be possible to obtain a benefit from the sale of the assets at a higher price than the price set at the time of purchase.

But it is also possible to trade price movements without owning the currency , something that is only possible through a Contracts for Difference (CFDs) account.

A Contract for Difference is understood as a contract between two parties that stipulate that the seller will make payment to the buyer of the difference between the current value of an asset and its value at the time of signing the contract.

Our trading strategy may be different depending on the objective we pursue and, above all, our investor profile, which will determine the way in which we interact with the assets.

One of the best-known forms of trading is called intraday trading , which involves opening and closing positions before the market closes. In this way, we will not expose the assets to the market at night.

What is special about this? Well, by doing this, the overnight financing costs of our position are avoided, an ideal strategy if what we want is to take advantage of the short-term price movements of BTC .

Intraday trading allows you to get the most out of the daily fluctuations in the value of Bitcoin.

Another effective method is trend trading , which involves opening a position that matches the current trend. The ideal is, for example, to open a position to buy when the asset has experienced a downward trend and has begun to rise, so that we buy it at a lower price.

As soon as the asset has peaked and shows the first sign of devaluation, the asset is sold to do so at a higher profit margin.

Trend trading requires a thorough study of asset trends and detailed control of the evolution of its value.

The hedging strategy is another way to approach trading. It is used to reduce the risk exposure of opening a position contrary to an existing one. In other words: it is a strategy that protects you if the market moves in the opposite direction to yours.

For example: if you have decided to invest in Bitcoin, but as soon as you have done so, the asset has started to lose value, a good way to cushion the losses and partially offset them is to open a short position to sell.

It's a good way to avoid exposing yourself to total losses and to get some coverage against a trend that goes against forecasts.

Finally, we have HODLing , a strategy that consists of buying and holding Bitcoins. Although the HODL bug has been accepted, today HOLD and HODL are used as synonyms.

However, this tactic is only beneficial if the asset's future prospects are especially beneficial. Also, if your trading plan states that you should sell your position to limit losses, you should do so and you will close your positions automatically.

The importance of expert advice

As you may have seen, trading Bitcoins can be much more complex than it seemed.

In fact, knowing how to deal with these assets is much more than knowing how to buy and sell cryptocurrencies, and that is why patience and perseverance are required to learn all the ins and outs of the crypto market.

Learning yourself can be successful, but it requires a great deal of time and a series of resources that are often not within our reach.

Drawing up specific plans to operate with BTCs is usually essential so that each movement that occurs with these assets is not a false step, since there is no need to take additional risks when trading with Bitcoins.

In addition, the advantage of having specialized advice is that you can obtain very useful information on other aspects related to trading.

Advice is not for newbies: trading professionals also need expert support on certain trades.

One of the platforms that has grown the most in the field of cryptocurrencies is Criptan , whose app offers, among other resources, specialized advice to all its clients in order to get the most out of their investment. In this way, mistakes are avoided when investing money.

Bitcoin trading: step by step guide

We are going to make a small guide with all the steps to follow so that you understand all the processes of Bitcoin trading.

To get started, you need to open a CFDs account. Some CFDs tools have demo accounts that allow you to test some of the main features before creating a real account, allowing the user to become familiar so that they know how to operate with the account.

Some platforms offer specialized advice and analyze the situation of each user to explore the best options for each one, something essential in case you are not sure whether or not to opt for a CFD.

Next, it is important that a specific method is chosen to trade BTCs.

Keep in mind that opening an account with CFDs is only beneficial in certain circumstances, and the best thing in these cases, if you are not very clear, is to resort to experts in cryptocurrencies and trading operations for advice on how to operate through a Contract . by Differences .

If you have been recommended to opt for a CFD and you are convinced that your position is the correct one to opt for it, it will be essential to build a trading strategy plan .

This is especially important, because it can be very helpful in making decisions based on objective information that has outlined an operation.

In other words: a strategic plan is vital in order not to enter or exit a given trade early or too late.

Another point that you should keep in mind is that you have to keep up with the markets. Financial assets are exposed to the news, and anyone related to security and global macroeconomics can alter their position and put it in check.

For this reason, keeping up to date with all the news is important, something that the platform that we mentioned before does especially well, since it integrates an interface into its app itself through which it is possible to consult the main news that surrounds the crypto world. .

And it is that operating and monitoring is essential so that the position in Bitcoin is adequate at all times. In addition, other elements come into play here, such as stop-loss or take-profit orders, which crypto professionals can advise you on.

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