How to Become A Successful Bitcoin Trader (5 Steps for 2018)

Introduction

Every Bitcoin trader desires to be successful in the Bitcoin industry and be Successful Bitcoin Trader. It is the dream of most Bitcoin traders to make as much money as possible from the Bitcoin industry. Some people are trading Bitcoins with the hope that it will work for them while some of them are trading Bitcoin because they heard that it once made people millionaires. Whichever may be your reason for trading your Bitcoins all you should focus on right now is how to be successful in what you do?

HOW TO BECOME A SUCCESSFUL BITCOIN TRADER
HOW TO BECOME A SUCCESSFUL BITCOIN TRADER

To start with, Bitcoin is a digital currency that allows users buy and sell goods online. Apart from buying and selling goods online, Bitcoin also allows users send a large sum of money to other people irrespective of the person’s geographical location.  A sophisticated computer creates Bitcoin alongside its users who help to mine it in exchange for a reward of Bitcoins.

  • Bitcoin Exchange 

A Bitcoin exchange is an online marketplace that allows traders to buy and sell Bitcoins. They sell Bitcoins using fiat currencies.

  • Bitcoin Trade Market  

A Bitcoin trade market is an online marketplace that connects both Bitcoin buyers and sellers to sell and buying Bitcoins. Bitcoins trade market could also substitute for a storage platform that allows users store their Bitcoins in their wallet.

As Bitcoin continues to expand its industry, so does its potential expand on a daily basis.  Over thirty million people worldwide have come to embrace the cryptocurrency that has helped in making people’s transactions a lot easier. It has also helped to turn some people into overnight millionaires with its surge in value. Nevertheless, the main goal is how to become a successful Bitcoin trader?

Related: BITCOIN EXCHANGES 2018

5 Steps to becoming a Successful Bitcoin Trader

There are five critical steps to follow during your trading journey. These steps or tips will help you know if you are treading on the right part of success or not. These five steps are;

  1. Set Goals/Plan For Your Trade
  2. Do Not Invest What You Cannot Afford To Lose
  3. Explore Other Ways To Make Money From Bitcoin
  4. Learn How To Read and Understand Charts
  5. Close Leveraged Positions Within 24 Hours
  • Set Goals For Your Trade 

In business, they say that if you do not have a business plan, then you’re likely to fail. This also goes for Bitcoin trading. If you do not set your goals or your strategies, then you are likely heading for failure. A trader should have a well-written and defined goal; this will help you to be wise and realistic in your dealings. One of the reasons of having a well-defined goal is to prevent you from being emotionally unstable in your trade. If you become emotionally weak then it, will become difficult for you to buy at a low price and sell at a high price. As a trader, you do not need to be too emotional; all you need to do is to remain professional at all times.

Related: PAY WITH BITS: THE NEW BITCOIN EXCHANGE APP 2018

  • Do Not Invest What You Cannot Afford To Lose 

Remember that Bitcoin is unpredictable and it has certain risks associated with it. As a trader, do not invest any money that you cannot lose. Money such as your live savings should not be traded or invested in Bitcoin. This is because it is dangerous. Only invest the amount of money that you are comfortable with losing. At all times, make sure you are prepared for what may be thrown at you (Whether profit or loss).

  • Explore Other Ways To Make Money From Bitcoin 

As a Bitcoin trader who aims to be successful, learn not to put all your eggs in one basket thus, exploring other ways to make money from Bitcoin could come in handy. If you rightly know how to make money from Bitcoin, then you will not need to rely on the selling and buying of Bitcoins to make money.

HOW TO BECOME A SUCCESSFUL BITCOIN TRADER
HOW TO BECOME A SUCCESSFUL BITCOIN TRADER

There are so many ways to make money from Bitcoin but among them are;

  • Bitcoin Tasks; You can participate in Bitcoin tasks. Here, you get Bitcoins by watching promotional videos, filling surveys, downloading and testing various apps, playing games and lots more! When you watch promotional videos, play games or even fill surveys you are rewarded for your efforts and time.
  • Selling Goods and Services; Nobody wants to be a successful Bitcoin trader without any money to show for it. Therefore, another way to make money is through selling your goods and services online in exchange for Bitcoins. You could sell anything ranging from your old clothes, unused books, handmade crafts, car, and gadgets. Once you can get a buyer who is willing to buy your goods, then you will be paid in Bitcoins. Apart from goods, you could sell your services such as; design services, writing services, animation services, accounting services, In case you do not know which site to use, you can check out the following articles.

10 BEST WAYS TO MAKE MONEY WITH BITCOINS (COMPLETE GUIDE)

HIGHEST PAYING BITCOIN FAUCET APPS (COMPARISON)

10 BEST BITCOIN EARNING SITES (FREE/ PAID – COMPARISON)

10 BEST BITCOIN INVESTMENT SITES (VERIFIED SITES – COMPARISON)

  • Know How To Read and Understand Charts  

One thing that is for sure is the fact that developing technical skill is hard and sometimes it could be discouraging due to its complexity, but despite that, it is vital for new Bitcoin traders to know how to read and understand market charts. One good chart tool is Bitcoin Wisdom.  There are terminologies a trader has to know. They are;

  1. Opening price; the opening price is a part of the horizontal rectangle. It is horizontal to the left where the candlestick is located. The opening price is horizontal to the candlestick located on the left.
  2. Candlesticks; candlesticks comprises of the rectangles and lines that look like a candlestick shape. It is used to illustrate the effect of the price within a particular period.
  3. Highest price; this illustrates that on this particular day, the price reached the estimated
  4. Lowest price; this illustrates that the price fell to an estimated value or price
  5. Closing price; this part of the rectangle is horizontal. It is horizontal to the right where the candlestick is located.
  6. Price direction; this shows that the closing price is less than the opening price. This leads to a fall in the price of Hence, the candlestick turns red.
  7. Trading range; the trading range is the difference between the highest price and the lowest price. It shows us the range that the price trades in.
  8. Order book; the order book contains the list of prices and quantities that traders are willing to buy and sell Bitcoin.

Aside from these terminologies, every Bitcoin trader should know some other things. They are;

  • Orders; In the Bitcoin market we have the ‘asks’ (this means sell orders), and we have the ‘bids’ (this means the buy orders).Note that the difference between the lowest sell order and the highest buy order is known as ‘’
  • There is also a section that allows traders know the current trends and happening in the market.

As a trader, you may be wondering how this translates to being successful. The good news is that if you understand the technicality of the cryptocurrency market, then you get access to a short-term support. Also, understanding this concept will help you quickly identify the resistance level when available. As a trader, if you do not understand all these technical details, you are likely going to experience some issues. Therefore, it is important to know your trade market very well.

  •  Close leveraged positions within 24 hours  

    The borrowing of capital in the hope of expecting a huge profit that is greater than the interest is known as; leveraging. As a new trader make sure you close all unprofitable and leveraged positions within twenty-four hours. This is to help you avoid paying any re-occurring interest that you are charged for.

Expert’s Opinion

In conclusion, being a successful trader takes a lot of time, hard work, and dedication. Also, reading more about the Bitcoin industry and keeping up with the latest trends will help a trader to become vast in knowledge. Hence, it will help you become innovative in the way you trade.

How to be a successful bitcoin trader
How to be a successful bitcoin trader

Related: 10 BEST BITCOIN EXCHANGES (COMPARISON/ REVIEWS)

One thought on “How to Become A Successful Bitcoin Trader (5 Steps for 2018)

Leave a Reply

Your email address will not be published.

0Shares
0 0 0 0
Follow Us