Bitcoin has changed the concept of the traditional banking system. The blockchain technology has revolutionized the world and its implementation is not only limited to cryptocurrency. But we not going to the technical details rather we will teach you how to trade the bitcoins like the pro traders. Those who are not traders are always thinking to buy bitcoins. After buying the bitcoins with their last savings, they hope that the price will shoot higher. But things are not so easy when it comes to the investment business. Having the urge to buy bitcoins to make profit is more getting into the world of trading. Let’s find out the perfect way to trade bitcoins.
Find a reliable broker
The first thing is the find a reliable broker. There is no reason to buy bitcoins and wait for years to make a profit. Instead, you can trade bitcoins and other digital cryptocurrencies with the help of a brokerage firm. Those who are familiar with the Forex market knows how easily the traders can make millions of dollar profit by using the market leverage. Just like that, you will be trading the BTC/USD pair through a broker. Instead of buying you can also sell BTC/USD and start making some serious cash. But to make a profit, you must speculate the direction correctly. And for that, you have to develop a unique strategy.
Develop a trading strategy
The professional traders in the CFD trading industry always trade the market with some valid logic. They never place the trade without thinking about the worst-case scenario. They look for profitable trade setups in their trading platform and execute the trade with managed risk. As a new Aussie trader you should open a demo account and start trading the bitcoin. Those who are new to the concept of demo account has a lot to learn about the investment business. Demo account provides access to the financial market where you can trade with virtual dollar. The purpose of the demo account is to save the real money of the novice traders. Focus on your skills and try to come up with a unique strategy so that you can trade the bitcoin in the real market.
Cutting down the losing trades
Being a bitcoin trader, it will be hard to cut down the losing trades. But if you start trading the market with emotions, you are gambling. You should rely on mathematical data and execute the orders based on your strategy. Your strategy should be develop based on rational logic. However, never think you won’t lose any trade by trading with fixed sets of rules. Losing orders are very common in trading business and there is nothing you can do to avoid the losing trades. Try to cut down the losing trades early so that you don’t have to incur heavy losses.
Executing short orders
Trading bitcoins shouldn’t be limited to buying orders only. The amateurs are always looking for buying opportunity and eventually losing money on the major correction. Just like any other asset, you will have to deal with the bullish and bearish trend. Though the long term bias is bullish for the bitcoin, you have to prepare for the major reversal. For instance, the price of bitcoin dropped more than 10000 points after securing a record high at $20000.So, those who bought at that extreme point must have lost a big sum of money. At times you should short BTC/USD pair but this should be done on rational logic. If you find any sell signal in the trading platform, never afraid to open the short orders.
You must trade this market with a defined risk to protect your capital. Those who take too much risk are losing their capital by trading the bitcoins. Following the 2% rule of money management is one of the most effective ways to trade the bitcoins.