How to make money with bitcoin trading: strategies and advice

How to make money with bitcoin trading: strategies and advice

It is interesting to know how bitcoin trading works. Earnings on the cryptocurrency exchange in practice does not differ from classical trades. The trader should be aware of all future events in the economic sector. It is important to monitor the course and be able to predict it. You will also need the ability to control yourself, rather than drop the Bitcoins at the earliest opportunity, as soon as the exchange rate increases by 1-2 positions.

Table of content

  • Are there trade strategies for bitcoins?
  • How do publication of news and macroeconomic indicators influence Bitcoin?
  • Basic Terms for Trade
  • The most reliable sites to have an income from cryptocurrency
  • Four Rules for Successful Trading

Each side of the deal dictates its terms, the second side decides whether to accept them. Particular attention should be paid to a reliable intermediary, who will pay money to your account. Sites for cryptocurrency earning are opened almost every day, but it is necessary to work only with proven resources, so as not to become a victim of another scum.

Are there trade strategies for bitcoins?

Strange as it may sound, it is easier to trade bitcoins than ordinary currencies. The fact is that the speculative factor in Bitcoin course is too insignificant, which excludes fraudulent movements, “stop hunting” and other methods of speculators in Forex.

That's why there are no special strategies for bitcoin - there is no need for them. The simplest trend strategies will work to trade the currency pair BTC / USD. You can also use channel and breakout forex strategies. Naturally, you should not neglect the rules of management, which also work for cryptocurrency

How do publication of news and macroeconomic indicators influence Bitcoin?

A Forex pair bitcoin / dollar stands apart in a number of currency pairs. The fact is that bitcoin practically does not show any reaction to the publication of the US economy indicators. This is natural, because bitcoin is not the currency of any state and does not play any role in the economy of any country.

Another thing is news. Here bitcoin reacts very quickly to it. It is very important to follow the news of the world of cryptocurrency. If there is information about large investments in bitcoin by serious companies, you can be sure of the growth of the pair BTC / USD and open positions for sale. If some hackers once again robbed the exchange, you can safely open positions for sale.

There is another characteristic point - the news has a fairly “long-playing” effect on the bitcoin rate. For example, if the publication of NonFarm Payrolls causes an immediate sharp jump in the euro / dollar currency pair, then the news for bitcoin has an impact for the next few days.

Basic Terms for Trade

Now it is time to know how bitcoin trading works. Every member of the stock exchanges faces daily terms such as:

  1. Charts.
  2. History of concluded deals.
  3. The volume of trading on the exchange.
  4. Orders to sell or buy.

The easiest thing is to work with charts and history. Using the chart, you can track the ratio of the Bitcoin to the dollar (or any other currencies) over the past few weeks. As a rule, the difference in the graphs is clearly demonstrated with the help of “Japanese candlesticks”. Earnings on cryptocurrency depends directly on the ability to read these candlesticks.

The Japanese candlesticks have several features:

  1. The body that determines the current state of the course. If at the time of opening trades the rate of the currency was low, and by the close of trading it increased - the body is painted black or red. This candlestick is called bull. If the situation looks the other way round, that is, the rate has fallen by the end of the auction, then the candlestick is painted white or green.
  2. Shadow indicating the maximum and minimum price in the bidding stage.

Also there is the term “doji”, which is used in the event that the candlestick is almost completely missing the body, there is only a shadow. Sites for earning cryptocurrencies, as a rule, provide the maximally detailed instruction on trades and schedules. The main thing is to read it before you make the first attempt to earn money, and not after you have drained all your money.

Buy and sell form an order book. This professional term defines a list in which all users are asked to buy / sell Bitcoins or any other currencies. In an order book, you can choose the most attractive offer for you and make a deal, thereby slightly adjusting the current rate.

If you do not know how to earn on the cryptocurrency exchange, the first thing you need to do is to learn to analyze the order book, otherwise the trades will be ineffective. Data from the quotation order book allows you to calculate the spread on a pair (for this purpose the difference between the first values in the list is determined). In general, you will have to learn a few dozen new terms, but it's quite simple. Many exchanges offer trainings on virtual money. We recommend to use this service at first and only after that invest real money.

The most reliable sites to have an income from cryptocurrency

In a network new sites to have an income from cryptocurrency appear constantly, we recommend to work with the most checked up. Among them:

  1. BTC-e is one of the first exchanges, founded in 2011, as soon as the Bitcoins gained mass popularity. Confidently it is one of the five best and largest trading platforms. With the help of this exchange you will be able to trade electronic money in exchange for rubles, dollars and euros, so to speak, the “standard set”. Commission services are relatively small - up to 0.5% of the amount of the transaction. The site is checked for years, after all - 5 years on the market.
  2. Bitstamp only works with the Bitcoin-USD currency pair. The absence of many directions positively affects the work of beginning traders. You will not get confused in courses, bets, forecasts. By the way, with the help of exchanges, it's not necessary to make earnings on ease, you can simply exchange the money earned while mining or on crans at the most favorable rate.
  3. Bitfinex occupies a leading position in the industry, it amazes with the volumes of conducted transactions. The exchange operates only in currency pairs Bitcoin-USD, Litecoin-USD, Litecoin-Bitcoin.

There are a lot of Chinese exchanges on the market, for example, BTC China or Bter. The first one in 2013 was the leader in the industry, but it lost ground due to new laws, the second one impresses with the number of currency pairs. With the help of Bter it is possible to conduct trades in 35 directions. This is a true leader in the exchange market.

It is also worth highlighting the site Exmo. Service successfully works in the market for more than 2 years, daily turnover is registered at the level of 670 Bitcoins. The Exchange successfully works with Bitcoins, Litecoins and DOGE, as well as with euro, dollar and ruble. There is the opportunity to communicate in 24/7/365 mode with technical support and a low commission for transactions - only 0.2%.

Four Rules for Successful Trading

To become a successful trader, you need to know the basic principles of working with exchange sites. The four principles of success are as follows:

  1. Determine the amount that you do not mind losing. Never play for last money. Earnings on cryptocurrency will only occur if you do not take any risks at all. So you can approach to work with a “cold head”, and not “shake” over each change in the course.
  2. Make informed decisions. Buy Bitcoins only at the time of the fall, and sell with growth. But do not wait for “the very minimum / maximum”. Focus on the course above and below the average. So you are guaranteed to make a profit. If you wait for the maximum - you can completely miss the moment and stay with nothing.
  3. Believe only yourself and the graphs. Make up your strategies. To listen to rumors distributed in the chat, is strictly prohibited. All strategies and recommendations in the chat rooms of exchanges are made on the basis of personal expectations and hopes.
  4. Sites for cryptocurrency earning, in most cases work with several currency pairs.

How to become a bitcoin trader? Experienced traders recommend not to put all the money in one direction. If the site offers 3 currency pairs - distribute 100% of the deposit between these three directions. “Keep the eggs in one basket” is the main sign of inexperience and lack of knowledge.