Bitcoin fell yesterday and fell below the $ 10,500 support. That undoubtedly caused a massive sell-off across all exchanges, and it reminded me of the days when I fervently traded Bitcoin. As a trader who has gained and lost a lot, I look forward to sharing some tips with those who have just started trading or engaging in Bitcoin futures trading.
My love-hate relationship with Bitcoin was formed as early as October 2017
Yes, right before its epic climb to over $ 20,000. At the time, almost every tech-related website I visited was talking about Bitcoin and all the millionaire stories overnight.
Highly tempted, I first deposited $ 2,000 without doing extensive cryptocurrency research. When I made a 5% profit, I was totally calm and gave myself a pat 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 climbed higher and higher, I was hooked and invested a certain amount of money – $ 12,000 in total, all in one month. Then one day, you probably already know what happened, Bitcoin started a free fall.
Inside, he was having a panic attack. But I kept telling my friends, and more importantly, myself, that Bitcoin had already had a few dips in the past and that it had bounced so there wasn’t much to worry about. The only thing is that he did not recover as in the last few occasions. I watched it sink lower and lower and said no to every opportunity to sell it.
In less than a month, half of my deposit was removed, along with my trust in Bitcoin. The loss really hurt, and I spent several months crying about it. But that was like a wake-up call for me and I started putting more effort into studying what made Bitcoin work and why the Bitcoin market was moving so violently.
The Importance of Bitcoin Research
My research on Bitcoin convinced me that not only could it protect against inflation in the long term, but it could also act as a short-term investment due to its high volatility. This time, I decided to switch sides and go with the main trend.
I opened an account at Bexplus, a cryptocurrency exchange known for its easy-to-use interface and beginner-friendly orientation. Using their demo account, I learned to analyze the market with different indicators.
Sometimes he won, sometimes he lost. But since Bitcoin kept falling in those few months, I gained more than I lost, by trading Bitcoin short. Now I diversify my portfolio, invest in other traditional assets to manage risk, and apply what I have learned to trading. Although I trade Bitcoin less frequently, I still make money by depositing it in the Bexplus wallet at 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. If you hope to invest in Bitcoin and participate in futures trading, here are some tips for you …
Tip 1: Start with small capital
Starting small allows you to go very far. It is recommended that you divide your capitals for multiple positions. So if the market is going against you, you can assign 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. This is the first on the list of the most important tips to use with Bitcoin.
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 traders are those who learn to analyze the market, keep abreast of market news, and keep trying different strategies.
Choose a platform that offers a built-in trading simulator for you to practice. A good demo account serves as a sandbox to improve your skills and familiarize yourself with the rapidly changing market. In addition, some platforms even offer consulting services or personal account managers to users, and offer useful tips to earn more with Bitcoin.
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 a place where the price has the greatest difficulty to break. If the price is close to support in an uptrend, you could place a long-term order.
As we can see, the $ 10,800 level is considered as the support level for Bitcoin, while the $ 11,500 represents resistance. If we open a long position with 1 BTC at US $ 11,100 and close it when the price reaches US $ 11,500, we will win (US $ 11,500 – US $ 10,800) * 100 BTC / US $ 10,800 = 6.48 BTC.
Tip 4: Take advantage of technology
You can use different tools, tips and technology to analyze the Bitcoin market or facilitate trading. Indicators, drawing tools, and P / L calculators are available on many platforms. Using them correctly can help you better understand the market trend.
Another powerful tool is smartphones. Today, most mobile commerce applications are as comprehensive as their desktop counterparts and much more convenient.
Take the Bexplus app as an example, it not only covers the necessary functions such as real-time charts and interest wallet, but is also installed with the real-time notification to ensure that users can monitor the market fluctuation 24/7. This could keep you updated while temporarily distracting you from stress.
Like all other Bitcoin derivatives, leveraged trading is risky, but it brings in 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 platform offering 100x leverage on BTC, ETH, EOS, LTC and XRP futures contracts. It requires no KYC, no deposit fee and is running a 100% deposit bonus promotion. You can exchange different cryptocurrencies or earn money simply by depositing in the interest-bearing wallet.
“This content comes to us courtesy of Bexplus, it does not necessarily represent the vision of the author and CriptoTendencia.” We always recommend doing a thorough research before making financial investments.