Bitcoin crashed last week and lost more than $ 10,000 quickly. While it has gained 1,200% from its low of $ 3,000 in March 2020, many traders are spooked by its high price volatility. As a crypto trader who has gained a lot and lost a lot, I look forward to sharing some advice with those who have just started trading Bitcoin futures.
A Love – Hate relationship story with Bitcoin
My love-hate relationship with Bitcoin was formed in October 2017, just before its epic surge to over $ 20,000.
At that time, almost every tech-related website was talking about Bitcoin and every millionaire stories overnight. Very tempted, I invested $ 2,000 first without doing extensive research on cryptocurrencies.
When I first made a 5% profit, I was totally calm and slapped myself on the back for making money on the first try. I also told myself that I just wanted to make some money and that I would sell my Bitcoin as soon as I made some more. But, as Bitcoin went higher and higher, I was hooked and made a huge amount of money – $ 12,000 in total, all in one month. But, one day, well known throughout the crypto market, Bitcoin began a free fall.
Inside, I was having a panic attack, but I kept telling my friends, and more importantly myself, that Bitcoin had already faced these types of drops in the past and recovered, so there wasn’t much to be had. to worry.
The problem was that he did not recover like the last times. I watched it sink lower and lower, and said no to every opportunity to sell it. In less than a month, half of my investment was gone, along with my confidence in Bitcoin.
The loss really hurt and I spent several months mourning her. But that was like a wake-up call for me and I started putting more effort into studying what made Bitcoin tick and why the Bitcoin market was moving so violently.
Understanding the leading crypto
My research on Bitcoin convinced me that not only could it protect me against inflation in the long term, but it could also act as a crypto investment in the short term due to its high volatility.
Therefore, this time, I decided to switch sides and follow the main trend. I opened an account at Bexplus, a crypto exchange known for its easy-to-use interface and beginner’s guide. Using their demo account, I learned to analyze the market with different indicators. Sometimes I win, sometimes I lose. But since Bitcoin continued to fall in those few months, I gained more than I lost by shorting Bitcoin.
In this way, I now diversify my portfolio, invest in other traditional assets to manage risks, and apply what I have learned to trading. Although I trade Bitcoin less frequently, I still make money by depositing it in the Bexplus crypto wallet with an annual rate of up to 30%.
I still believe that Bitcoin is a force for good and an ideal asset despite its volatility, especially at a time when the government continues to print more fiat money. So if you are hoping to invest in Bitcoin and engage in futures trading, here are some tips for you:
Tip 1: start with a small capital
Starting small allows you to go a long way. It is recommended that you split your capitals for multiple positions. So if the market goes against you, you can allocate a position in the opposite direction to loss coverage.
Remember, if you are trading BTC CFDs, the buying power will increase significantly with the help of leverage. For example, if you open a position using 0.01 BTC and 100x leverage, the position will be worth 1 BTC.
Tip 2: Practice and improve your skills and strategies
Making money speculating on price movements seems like a game of chance, but it is not. Successful crypto traders are those who learn to analyze the market, keep abreast of the news, and keep trying different strategies.
So, choose a platform that offers a built-in crypto trading simulator for you to practice. A good demo account serves as a sandbox for you to improve your skills and become familiar with the rapidly changing crypto market. Furthermore, some platforms even offer consulting services or personal account managers to users.
Tip 3: Trade with support and resistance
Support is a place where the price tends to find support as it falls. This means that the price is more likely to rebound from this level rather than fall below it. As for resistance, it is the place where the price has the greatest difficulty to break. If the price is near the support in an uptrend, you could place a long order.
As we can see, $ 42,000 – $ 45,000 is considered the support level for Bitcoin, while $ 52,000 is resistance. If we open a long position with 1 BTC at $ 45,000 and close it when the price reaches $ 50,000, we will win ($ 50,000 – $ 45,000) * 100 BTC / $ 50,000 = 10 BTC.
Tip 4: Take advantage of technology
You can use different tools and technologies to analyze the crypto market or facilitate trading. Indicators, drawing tools, and P / L calculators are available on many crypto platforms. Using them correctly can help you better understand the market trend.
Another powerful tool is smartphones. Today, most mobile trading applications are as comprehensive as their desktop counterparts and are much more convenient.
Take the Bexplus app as an example, it not only covers the necessary functions such as real-time charts and interest-bearing wallet, but is also installed with the real-time notification to ensure that users can monitor the market fluctuation 24 hours. of the day, 7 days a week. This could keep you updated while temporarily distracting you from stress.
Like all other Bitcoin derivatives, leveraged crypto trading is risky, but it brings juicy profits when used correctly. If you are hoping to try BTC futures trading, I highly recommend Bexplus Exchange.
Bexplus is a leading crypto derivatives exchange offering 100x leverage on BTC, ETH, EOS, LTC, and XRP futures contracts. Also, it does not require KYC or deposit fee and is running a 100% deposit bonus promotion. You can trade different cryptos or earn money simply by depositing into the interest-bearing crypto wallet.