How to Trade Bitcoin?
Bitcoin is a popular and highly volatile cryptocurrency. Introduced in 2009 by anonymous developer/s Satoshi Nakamoto, it’s the world’s first, largest, and most well-known digital currency.
Read on to discover everything you need to know about Bitcoin; how it started, how it works, Bitcoin trading strategies, and how to trade Bitcoin on forex.
Bitcoin Trading History
Bitcoin is a decentralized system of peer-to-peer electronic exchange. It was designed to circumvent traditional banking infrastructures after the 2008 financial collapse. As such, transactions don’t require any third-party intermediaries to take place. Bitcoin is created, distributed, traded, and stored using a digital ledger called a blockchain.
Bitcoin is an emerging asset class known for its volatility and has been through numerous boom and bust cycles during the Bitcoin trading history. However, despite these uncertainties, Bitcoin has seen astronomical growth since it appeared on the market over a decade ago.
While still a cryptocurrency, Bitcoin has evolved in recent years into a highly attractive investment. Gaining traction in the forex community, Bitcoin attracts traders who apply forex trading strategies to take advantage of the volatility in its price changes.
When did Bitcoin start trading?
It took time from Bitcoin being introduced on the market to people actively trading it:
1. Bitcoin Genesis Block
On January 3, 2009, the first “genesis block” was mined, launching the original blockchain. A week later, the first test transaction took place.
2. Bitcoin value
Bitcoin had no monetary value when it was first launched; its price was completely arbitrary. Miners initially traded Bitcoins back and forth for fun. The first Bitcoin transactions took place in internet forums by people bartering tokens in exchange for goods and services.
3. Bitcoin for pizza
On May 22, 2010, a man in Florida managed to negotiate the delivery of two Papa John’s Pizzas priced at $25 in exchange for 10,000 BTC. This established the first real-world value of Bitcoins at 4 Bitcoins per 1 cent. Today, the cost of that many Bitcoins is almost $300 million! From that day on to crypto fans, May 22nd became known as “Pizza Day”.
4. Bitcoin mining
In 2011 miners improved Bitcoin’s code and adapted it for different uses. They also began building other networks like Ethereum and Litecoin, expanding the cryptocurrency market. Certain businesses began accepting Bitcoin as an asset alongside traditional currencies. These wider uses for Bitcoins led to a steep rise in Bitcoin’s perceived value.
5. Bitcoin exchange
In 2010 Bitcoin became available on the exchanges. This made it easier to start trading Bitcoin. It now has a reliable price against the USD. In El Salvador, Bitcoin has even been adopted as legal tender.
Read Also: ECB Cryptocurrency – All you need to know!
What is Bitcoin Trading?
So now that you know how it all started, you’re probably asking what is Bitcoin trading?
Traditionally, trading Bitcoin involved buying tokens through an exchange in anticipation of a price rise over time.
However, you can now trade Bitcoin without owning or exchanging any tokens. You can speculate on Bitcoin price movements using CFD derivatives. This enables you to take a position based on your expectation of a rise or fall in Bitcoin prices.
The volatility surrounding Bitcoin creates a possibility of high yields on trades. This of course means that Bitcoin trading also carries higher risks.
How Does Bitcoin Trading Work?
Bitcoin trading works by speculating on expected Bitcoin price movements. With tixee, you can open a position on the price of Bitcoin with CFD derivatives. This allows you to potentially take advantage of Bitcoin price movements in either direction.
The accuracy of your prediction and the size of the market movement will determine the amount of profit or loss you make.
How to Start Bitcoin Trading
Bitcoin trading basics, in three easy steps:
- Step 1: Open a CFD account. At Tixee, we have a wide range of trading accounts suitable for traders of all experience levels. We also have over 5 platform options, including MetaTrader 4 and MetaTrader 5, to fulfill all your trading needs.
- Step 2: Fund your account. Depositing funds into your Tixee account is easy, intuitive, and safe. We have several secure funding methods to fund your account and to get you started on your trading journey. We don’t charge any funding fees and the process is straightforward.
- Step 3: Choose a strategy. Read on below for tips and tricks to get you started in Bitcoin trading.
Bitcoin pro trading
Bitcoin’s volatility has started to attract professional day traders who apply forex trading strategies to take advantage of the fluctuations in its market value.
At tixee we have a wide range of trading accounts to suit traders of all experience levels. We will outline some popular Bitcoin trading strategies below for you to trade Bitcoin like a PRO!
Bitcoin Trading Strategies
1. Bitcoin copy trading
Bitcoin copy trading allows you to mimic the positions of more experienced traders. It enables beginner traders to shorten the trading learning curve. Your success largely depends on choosing the right trader to mimic.
Bitcoin copy trading platforms were created so that novice traders could bypass the years of trial and error it takes to learn how to trade.
It’s worth bearing in mind that the success of your Bitcoin copy trading depends on who you choose to copy and how much money you wish to risk. If you’re mimicking a low-risk expert trader, you may put more money into a trade. However, if you choose to copy a trader who has high-profit margins but also a high-risk profile, it may be best to trade with less money at first.
2. Bitcoin margin trading
Bitcoin margin trading means that instead of exchanging or taking ownership of Bitcoin tokens, you trade speculatively on Bitcoin price movements using CFD trading.
CFDs are always traded with leverage. This means that you lay down a deposit, or ‘margin’, but you gain full market exposure.
How to trade bitcoin on forex?
If you have traded forex or CFDs on either the MetaTrader4 or MetaTrader5 platforms, you won’t have any issues understanding how to trade Bitcoin on forex.
At tixee, along with Bitcoin, we have a large selection of cryptos for you to trade, along with over 220 CFD assets.
Trading Bitcoin on forex/CFD platforms means:
- No Bitcoin tokens are owned or exchanged during a trade
- You don’t need to own a crypto wallet
- CFD trading is leveraged
- You can trade crypto-fiat pairings like BTC/USD pairs (as opposed to most crypto exchanges that only allow you to trade crypto-to-crypto pairings)
- You make your deposits and withdrawals using the currency of your country
How to Auto Trade Bitcoin?
You can auto trade Bitcoin using automated crypto trading platforms. The program will execute trades on your behalf based on set algorithms.
Automated Bitcoin trades can help you:
- Buy and sell Bitcoin much faster than you could manually
- Execute orders consistently, based on precise indicators
- Trade 24 hours a day, 7 days a week
- Save time having to monitor the Bitcoin markets yourself
If you’re used to trading using indicators, a bot can save you time, and help you to execute more precise buy and sell orders.
However, it’s worth noting that to auto trade Bitcoin requires a certain level of experience. It’s also still necessary to actively monitor crypto prices to ensure your trading strategy remains in line with market conditions.
If you aren’t familiar with the kinds of trading indicators used by auto bots, you should probably steer clear of this method until you’ve gained more market exposure.
Bitcoin Trading Analysis
By opening a trading account at tixee, you gain access to the award-winning MetaTrader 4 and MetaTrader 5 platforms, with market news and insights, real-time market watch quotes, and analytical charts to elevate your trading strategy.
These platforms integrate innovative tools for accurate technical, economic, and market news analytics for an advanced Bitcoin trading analysis. MT4 and MT5 allow you to apply multiple trade execution modes and technical indicators, no matter how complex, as well as auto-trading functionality.
Bitcoin Trading Tips and Tricks
Using a regulated broker and a trusted platform like MetaTrader 4 or MetaTrader 5 allows you access to exclusive training webinars and 24/5 customer support to help you stay ahead of the game.
Here are some useful Bitcoin trading tips and tricks:
- Employ risk management strategies: because Bitcoin is one of the most volatile assets on any CFD platform, it’s useful to maintain a balanced trading psychology and employ a solid risk management strategy. If you’re used to the minor movements in decimal percentage points of forex assets, the Bitcoin price movements in the tens and hundreds of currency units per day may come as a surprise. But remember, by opening a trading account with Tixee, you get access to all our risk management and educational tools, including in-platform stops and limits, so you can implement them into your trading.
- Keep on top of the latest news: the crypto news is very important to Bitcoin price movements. Any press surrounding Bitcoin and its security, value, longevity, regulatory or integration changes will have an impact on its market price. Tixee gives you access to the latest real-time market updates and insights.
- Pay attention to Bitcoin price correlations: and learn about their potential implications. It will help you to strengthen your portfolio and potentially mitigate your risk more effectively if you trade in assets whose prices don’t move in tandem. Remember, Tixee offers you access to over 220 CFD assets and all major crypto assets.
Best time to trade Bitcoin
Although the crypto market is open 24/7, if you’re executing large buy and sell orders, you’ll want to do so when the market is at maximum liquidity.
You will also want to take advantage of Bitcoin price movements when the market is at its most volatile and more opportunities for lucrative trades become available.
Bitcoin investment is seeing an evolving trend from East to West in recent years. Many argue that the best time to trade bitcoin now coincides largely with the US stock market hours (Monday through Friday, 09:30 to 16:00 Eastern time), with the weekend being the worst time to trade.
Bitcoin Trading Platform
At tixee, we offer you a platform that allows you to trade in Bitcoin using CFD derivatives.
By using tixee as your preferred broker, you gain access to both the MetaTrader 4 and MetaTrader 5 platforms. Read more about what makes the MT4 and 5 platforms among the world’s most popular trading platforms.
How to Trade BTC – Conclusion
Bitcoin is one of the most popular and valuable cryptocurrency, and one of the most actively traded. Its rise over the years has inspired the development of thousands of other cryptocurrencies.
Bitcoin trading offers the possibility of earning profits, with a small amount of money. Unlike traditional assets, Bitcoin trading is also possible 24/7.
The volatility of the crypto market means that traders can take advantage of Bitcoin price movements. However, a suitable risk management strategy needs to be employed to ensure that you don’t lose money on an unsuccessful trade.
Frequently Asked Questions
You can certainly turn a profit from Bitcoin trading. This will of course depend on how well you know the market and your ability to analyze it, as well as underlying market conditions. Using copy trading at first may help you learn how to trade Bitcoin by mimicking expert traders. But of course, there is always the other side to losing your funds.
Several factors impact Bitcoin’s price, including:
Bitcoin supply. Bitcoin has a finite supply. The price of Bitcoin will most likely increase as demand rises in the next few years.
Bitcoin press. Any bad press surrounding Bitcoin and its security, value, or longevity will have a negative impact on its market price.
Bitcoin integration. How well Bitcoin is perceived also depends on how well it is integrated into new payment systems and traditional banking frameworks. Successful integration will probably have a positive impact on Bitcoin’s price.
Bitcoin news. Changes in regulatory structures, any breaches in security, and macroeconomic announcements about Bitcoin all affect its market value.
The value of Bitcoin is extremely volatile but has risen considerably since it first entered the market. Bitcoin’s price is affected by supply and demand, availability, other cryptocurrencies, and investor sentiment.
On opening an account at tixee, you gain access to real-time market news updates, insights, quotes, and charts.
Tixee clients have exclusive access to training webinars and 24/5 customer support. We have a wide range of trading accounts suitable for traders of all experience levels.