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    Home»Nerd Voices»NV Finance»5 Most Important Bitcoin Trading Concepts
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    NV Finance

    5 Most Important Bitcoin Trading Concepts

    Nerd VoicesBy Nerd VoicesJune 21, 20225 Mins Read
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    Bitcoin trading is much more complicated than it seems. Becoming a good trader doesn’t just mean gaining a sudden profit but british bitcoinprofit must have the skill to cope with every market situation. For that, understanding the market concept including various trading strategies is very important.

    1. Bitcoin market:

    Bitcoin trading can’t be profitable if its market concept is not clear to you. The very first thing for every bitcoin trader is to know the market thoroughly, how bitcoin’s price changes, what factors are responsible for that, and how the market can be in the future, everything is of utmost importance. The bitcoin market is volatile. That’s what everyone knows but if you don’t know how different factors impact then you can lose your funds overnight.

    • Bitcoin’s supply:The number of total bitcoin is finite. Only 21 million bitcoin can ever be mined and nearly 19 million have been mined already. So, limited supply increases the demand and you can find a sudden hike in the price of bitcoin while there is a shortage of supply. 
    • Production cost: Bitcoin’s are produced by mining that needs a huge power supply and strong computers. Also, the time that each mining computer setup takes to create a bitcoin is different from the other because mining includes cryptographic puzzles to be solved. So, the production cost differs from time to time which affects bitcoin’s price.
    • Other crypto performance: If you trade bitcoin, looking only into the bitcoin market will not help. You have to gain a broad knowledge of the whole crypto market. Many other cryptocurrencies are performing well over the last two years and you can add them to your portfolio to keep your funds safe.
    • Trend: Most importantly, social media trends can be very tricky for new traders. It is good to study and research on your own despite following the social media trends. There is some fake news about crypto scrolling around social media and you should not take such tweets seriously. 
    • Records and graph analysis: You need to know what the price structure of bitcoin looked like in the past. Taking this and all the other factors in mind you can work on understanding the price graph of bitcoin and how the future movement of it.

    If you have an idea about all these things you will be much clearer about the crypto markets movement and decision making for trading bitcoin will be easy for you.

    2. Short term trading:

    As the bitcoin’s market price changes frequently most traders prefer short-term trading. It helps them to earn a small profit. The two main strategies for small-term trading are described below.

    • Scalping:This method of trading is for a very small duration such as for 1 minute or 5 minutes in a day. Here traders focus on the price movement carefully. Bitcoin’s price moves very frequently. So, by using their analyzing power and experience they can fix an entry and an exit point where the price will grow suddenly and massively in this short duration. 
    • Day trading:This kind of trading includes entering and exiting the trade on the same day or 24 hours. This also needs analyzing the perfect time to enter the trade and so as the exciting process. Here the amount of earning is good but the risk can be a little higher than scalping.

    3. Mid-term trading:

    Traders often prefer holding the bitcoins for a few days, weeks, or months. This is called mid-term trading. The best mid-term trading strategy is swing trading.

    • Swing Trading:Swing trading allows traders to make solid decisions that are not dependent on sudden emotion. They get more time to analyze the graph and find a suitable time to invest their funds in crypto. This strategy is good for beginners.

    4. Long term trading:

    Long-term trading actually means investing in bitcoin where you plan for several months or years. Position trading strategy can be good for those who are thinking about long-term trading.

    • Position trading:In this strategy traders don’t worry about short-term price fluctuations of bitcoin. They look from a broader perspective and try to figure out a point of time to enter the trade when they can predict that the price will increase in the upcoming months or years. 

    5. Diversified portfolio:

    This concept is like a golden rule for any kind of trader. The reason you must adopt the concept is that the whole crypto market is volatile and if the bitcoin’s price would unexpectedly go down at any point in time there would be other cryptos to save you. So, include some other well-performing cryptos in your bitcoin trading and diversify the portfolio.

    Conclusion:

    These strategies will help you play a more safe trading game and earn more too. Now there are just a few steps ahead from finding a good trading platform to opening a trading account. So, understand the concept, determine your trading strategy, and go forward to trade bitcoin. It is also recommended that you should also invest in oil, which is a more reliable and secured investment decision, With you can explore the right way to invest in oil.  Additionally, traders may leverage discounts such as the Apex Trader Funding discount to optimize their trading experience and access valuable resources. 

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