Thinking of gaining profits from large range of assets, commodities, shares and stocks is not an easy task. The point where one has to take a decision about to move further or not is what matters here. But, there is a way through which anyone can make simple yes or no decision and this is nothing but trading Bitcoin. Bitcoin have recently gained a prominent craze among the traders and is making a buzz around the trading industry. They were known as Digital Options at beginning but later named as Binary since binary means 2 values which when related to finance can be understood as up or down.
The simple point here is that traders doesn’t have to take time for deciding about these Bitcoin, this is the reason they are hugely famous among the traders. Since the trader has to choose only one among the possible two decisions yes or no, these Bitcoin are also called as Put or Call trades. To make it easier one doesn’t need to invest or purchase anything here, it is all about deciding the value of the Bitcoin either the value of an asset will either rise or fall in a given period of time. This makes it easier for the trader and moreover there is an advantage of trading Bitcoin, there is always a range of expiry times which range from 60sec to one month.
So for someone who is new to this chapter of trading and for someone who is interested in trading Bitcoin these are the few steps which guide you on how to trade a Bitcoin.
Step 1: Decide what is the type of Bitcoin you are interested in, it may be an asset, stock or commodity. Once you decide, invest some time and try to educate yourself about it. This will help you in taking a quick decision when needed, since all you have to do is to know whether the value of your Bitcoin will either increase or decrease.
Suppose if you have decided to invest on gold, analyze the market and make a decision about the present status of gold. Once you have decided all you have to do is to either place a put option if you think the value will fall down or to place a call option if you think the value will go up.
Step 2: Choosing a right Broker will help you in many ways. Before choosing a broker, check if he is fully licensed and regulated, see the options they provide for their customers. Some of them offer a welcome bonus while most of them offer a wide range of tradable assets. A welcome bonus will increase your initial deposit hugely. Once you decide the range or volume of your trades, chose a broker who offers an open account, since it gives access to maximum benefits.
Step 3: Expiry time plays a crucial role here in the case of Bitcoin trades, so once you decide your type of trades and a broker to place your trades at, it’s very important that you decide the expiry time of those trades. Generally trades may last for 60 secs or you can even place trades which last for one month. So it’s important that you consider all the possible factors which may affect your trades.
Step 4: Potential gains from your trades should be first analyzed so that you get the maximum returns from your investments. This can be done by comparing various Bitcoin Brokers.
Step 5: Increase the budget of your trading by always keeping a check on the competition between the Bitcoin brokers. We can often find a wide range of promotional offers which help us increase the value of our trading budget. One should look out for the loyalty based promotions which the brokers offer to us, and also one should check if they qualify for any trading bonuses additionally.
Step 6: keep in mind that you will never be knowing when a profitable bitcoin trading will be available and this is something which happens suddenly. So one should learn to place trades instantly and also it’s very important that one should make himself/herself more accessible to both online and mobile trading accounts provided by their brokers.
Step 7: It’s good to know about all the available options in trading the Bitcoin, for someone who wants to extend the expiry time of any of their live trades they have placed, they can do it by a new feature called Roll Forward Feature which is now available at many brokers.
Step 8: One should know when to exit the trading, since there will be many factors affecting our decision, we may sometime know that the results of our decision may not be the same as we expected them to be, that means they may even turn out to be in the other direction of what we chose so it’s very important for one to know when to take and early exit. This option is offered by many bitcoin brokers and they do suggest you when to take it.
These are the basic steps one needs to follow while trading Bitcoin. And by following these steps one can learn about the basic concepts of how to trade Bitcoin safely.