How to Trade Cryptocurrencies
Trading cryptocurrencies can be very profitable and make you a nice extra income or even become a full time job depending on how much time and effort you put into it. I’m sure we all wish that we had bought some Bitcoin at the end of 2013 and become millionaires after its phenomenal rise but there’s still a great deal of wealth to be made. The price has now stabilized and is on a steady uptrend since the beginning of this year.The cryptocurrency industry is still growing rapidly making it great to trade with. The advantage of trading cryptocurrencies over traditional currencies and commodities is the fast changes in the price can make you a nice return.
Mind set when trading cryptocurrencies
As with any sort of trading you need to understand the basics and the psychology behind it. Money management and risk assessment are both hugely important elements to trading cryptocurrencies successfully (or any kind of trading for that matter). You need to understand that, at times, your own mind will try and work against you – you are more likely to take higher risks when faced with a loss. If you can overcome the biggest hurdle, your own brain, that is a big step towards success.
When trading cryptocurrencies it is very important to keep an eye on the current news and announcements. For example, when Microsoft announced that they will accept Bitcoin payments on Xbox there was a quick surge in the price of Bitcoin and a rapid uptrend continued until the end of the month. The time of news announcements are great to start your trade and make a nice profit. I suggest checking the news and keeping up to date with the goings on regularly.
Practice on a demo
We also recommend you to get to know the platform and trading world before you start investing. As they say – practice makes perfect. Not a lot of brokers offer a demo account, but we do; you can start learning trading cryptocurrencies on our platform here.
The more you practice, the better feel and understanding of the markets you will get and soon you will be on your way to success.
Support and Resistance
Another very good tip that is a must-know when trading cryptocurrencies are the levels of Support and Resistance. Trading advice that is often given is – buy when the price is low and sell when high. Seems simple, right? But how do you know whether the price is currently considered as low or high? This is where the market term, “Support & Resistance” is very useful. The principle is the price moves as a wave in a corridor – the floor is considered Support and the ceiling is Resistance. When you look at charts you will see that it tends to bounce back from the same levels. This happens because the changes in price happen from traders buying and selling. Traders tend to buy and sell at the same levels of price bouncing back previously and it will become a self fulfilling prophecy. You can read more about Support and Resistance in this Investopedia article. You can also add Support & Resistance levels in addition to many other features to the charts on our platform.
Start your trading success!
Now that you know the basics it’s time to get to trading. Start trading cryptocurrencies on HitBTC.
We have a wide range of currency pairs to choose from and a lot more will be added soon. We are constantly working towards improving your trading experience. You can practice on our one of a kind demo platform to improve your strategies and confidence for free. Our platform is safe, reliable and user-friendly. We are taking all the measures needed for the security of your funds. Our fees are low so you can keep hold of your hard earned profit. We are passionate about cryptocurrencies and want to see this industry grow and thrive.