Trade platform PrimeXBT
The value of the cryptocurrency is constantly changing. This allows you to make money on fluctuations (growth, fall) in the exchange rate. The question “How to trade bitcoins” is relevant in a special way. After all, this “currency” is very volatile. If you hit the trend, the earnings will be huge. The risks are also great, but they are easily compensated for with a competent attitude to the buying / selling process.
How to protect investments and not be distracted from trading
Before you start trading on a cryptocurrency exchange PrimeXBT, it is recommended to take care of the safety of your funds. If access to bank accounts is restored with a passport in banks, this is not provided for with cryptocurrency. The loss of a wallet is tantamount to the complete loss of all the money that was on it. The protection procedure is similar to other online resources, but if there is no special need to strictly adhere to the rules, here they are mandatory.
Ways to enhance the security of personal finance in the BTC wallet:
Set complex passwords with numbers, punctuation marks, capital letters;
Do not store access codes on the computer (it is better to write them down on paper and hide them);
Use 2FA authentication (two-factor);
Complete verification on stock exchanges (photo with passport, etc.).
If done correctly, trading cryptocurrency on the exchange will be a pleasure. It is not enough to make money on bitcoins. It must be preserved and increased. And online wallet account protection comes first here.
PrimeXBT platform for bitcoin trading
When the question of how to trade a cryptocurrency is raised, a trader most often faces a choice – to buy / sell it directly or work on an exchange. The first option is the simplest. But it requires very large investments, and the risks are corresponding. It is worth missing a little time, and the rate may be lower than the one at which the bitcoins were bought. Due to the high volatility, losses will be large. There is one more drawback – earnings can be obtained only on the growth of the exchange rate.
The work on the exchange looks different. Cryptocurrency trading is possible both on an uptrend and when prices fall. Almost all companies provide access to trade platform using the PrimeXBT program. The terminal displays the history of rate changes and allows you to apply technical analysis.
Benefits of the program:
Opening an unlimited number of orders (as long as there is free margin);
Closing deals in manual and automatic modes (Take Profit, Stop Loss);
Partial closing, transferring a stop order following the price movement;
In parallel, you can trade currency pairs, precious metals.
It’s easy to learn how to work in PrimeXBT. The interface is Russian, there is detailed help in all menu items. To solve difficult situations, you can always contact fellow traders on the thematic forum. Many people start trading on their own in this way.
How to Prepare to Trade Bitcoin
In order for bitcoin trading to start making profit immediately, it is recommended to work on a demo account for at least the first month. This will allow you to practice the skills of opening deals and managing their status live. And also along the way to compare the real change in the course with news, events in the world market.
With cryptocurrency, it is important to understand if the project will close soon. Bitcoins are predicted to approach this line by 2140, i.e. you can still invest in them. In general, you will need to study a number of other trends:
Maximum and minimum peaks;
News field around selected digital coins;
Calendar of upcoming economic events.
Experienced traders never enter the market close to the “extreme” trend values. If the current rate is close to the maximum, then you cannot buy bitcoin. And vice versa – don’t sell it at the bottom of a downtrend. It is more profitable to wait for either the breakout of the high / low, or the price reversal. When the value level is within the trend, cryptocurrency trading can be carried out without restrictions.
Watching the news can often predict the rise / fall of the asset value. Use of the economic calendar will be helpful. It contains the most significant events – the publication of economic indicators, statistics on the population. Although the cryptocurrency is not directly related to any country, trading a pair with the US dollar forces us to take into account the effect of this currency on BTC.
Technical and fundamental analysis in Bitcoin trading
Outwardly, judging by the graph in the terminal program PrimeXBT, trading in cryptocurrency is similar to working with currency pairs. Candles, trends, lows and highs are forming. But the situation with bitcoin / altcoins is somewhat different. There is no history on the crypto market like the US dollar or the British pound. Plus, digital coins are not tied to any country, so events in individual states do not directly affect the rate.
The basic postulates of technical analysis will have to be applied with certain reservations:
The market price takes into account everything – the price of Bitcoin is more influenced by the widespread excitement around the sharply increased rate, so you cannot seriously count on this factor;
The market obeys trends – this rule works fine with cryptocurrency. If the trend has started, the price changes stepwise, with a correction;
History repeats itself – the dynamics of growth of the bitcoin rate is so high that there are no repeats of the price yet.