Topic: 5 steps for traders - page 3. (Read 423 times)

I think that the best advices I've ever seen is:
1) Do not buy coins when it is hyping.
2) Do not trade in one deal more than 10%.
 

I like the first point. Self realization is the first thing to keep in mind before you can become a pro trader, when the decision to make a trade appear, you don't come to forum to ask for advice on where to place trade.Add this point too. CUT YOUR LOSSES EARLY AND LET YOUR PROFIT RUN.

I think you need to read more information and literature about cryptocurrency, follow the news. The cost of bitcoin is very low.Many lost money. Bitcoin will grow, but it may take time. Can you wait?

I can advise you to look at the profits and losses of the one who gave these tips. It is possible that he can give advice but cannot make money by trading.

interesting notes! thanks

Thank you very for sharing your experiences
I also want to share something
1. Why Trade Bitcoin?

Before we show you how to trade Bitcoin, it’s important to understand why Bitcoin trading is both exciting and unique.

 - Bitcoin Is Global

Bitcoin isn’t fiat currency, meaning its price isn’t directly related to the economy or policies of any single country. Throughout its history, Bitcoin’s price has reacted to a wide range of events, from China’s devaluation of the Yuan to Greek capital controls.

General economic uncertainty and panic has driven some of Bitcoin’s past price increases. Some claim, for example, that Cyprus’s capital controls brought attention to Bitcoin and caused the price to rise during the 2013 bubble.

 - Bitcoin Trades 24/7

Unlike stock markets, there are no official Bitcoin exchanges. Instead, there are hundreds of exchanges around the world that operate 24/7. Because there is no official Bitcoin exchange, there is also no official Bitcoin price. This can create arbitrage opportunities, but most of the time exchanges stay within the same general price range.

 - Bitcoin is Volatile

Bitcoin is known for its rapid and frequent price movements. Looking at this daily chart from the CoinDesk BPI, it’s easy to spot multiple days with swings of 5% or more:

bitcoin trading
Bitcoin’s volatility creates exciting opportunities for traders who can reap quick benefits at anytime.

2. Find an Exchange

As mentioned earlier, there is no official Bitcoin exchange. Users have many choices and should consider the following factors when deciding on an exchange:

 - Regulation & Trust – Is the exchange trustworthy? Could the exchange run away with customer funds?

 - Location – If you must deposit fiat currency, and exchange that accepts payments from your country is required.

 - Fees - What percent of each trade is charged?

 - Liquidity – Large traders will need a Bitcoin exchange with high liquidity and good market depth.

Based on the factors above, the following exchanges dominate the Bitcoin exchange market:

 - Bitfinex - Bitfinex is the world’s #1 Bitcoin exchange in terms of USD trading volume, with about 25,000 BTC traded per day. Customers can trade with no verification if cryptocurrency is used as the deposit method.

 - Bitstamp - Bitstamp was founded in 2011 making it one of Bitcoin’s oldest exchanges. It’s currently the world’s second largest exchange based on USD volume, with a little under 10,000 BTC traded per day.

 - OKCoin - Bitcoin exchange based in China but trades in USD.

 - Coinbase - Coinbase Exchange was the first regulated Bitcoin exchange in the United States. With about 8,000 BTC traded daily, it’s the world’s 4th largest exchange based on USD volume.

 - Kraken - Kraken is the #1 exchange in terms of EUR trading volume at ~6,000 BTC per day. It’s currently a top-15 exchange in terms of USD volume.

 - Bitcoin Trading in China

Global Bitcoin trading data shows that a very large percent of the global price trading volume comes from China. It’s important to understand that the Chinese exchanges lead the market, while the exchanges above simply follow China’s lead.

The main reason China dominates Bitcoin trading is because financial regulations in China are less strict than in other countries. Therefor, Chinese exchanges can offer leverage, lending, and futures options that exchanges in other countries can’t. Additionally, Chinese exchanges charge no fees so bots are free to trade back and forth to create volume.

If you’d like to learn more about Bitcoin trading in China, this video from Bitmain’s Jihan Wu provides additional insight.

3. How to Trade Bitcoin

Kraken will be used as an example for this guide. The process and basic principles remain the same across all exchanges.

First, create an account on Kraken by clicking the black sign up box in the right corner:

bitcoin trading
You’ll have to confirm your account via email. Once your account is confirmed and you’ve logged in, you must verify your personal information. All Bitcoin exchanges require varying levels of verification as required by AML and KYC laws. Below you can find the first three verification levels:

bitcoin trading
Once your account is verified, head over to the “funding” tab. You should see something similar to the screenshot below. Select your funding method from the left side:

bitcoin trading
Kraken offers many deposit methods, which are listed here:

EUR SEPA Deposit (Free) - EEA countries only

EUR Bank Wire Deposit (€5) - EEA countries only

USD Bank Wire Deposit (Free until 3/1/2016, then $5 USD) - US only

USD SEPA and SWIFT Deposit (0.19%, $20 minimum)

GBP SEPA and SWIFT Deposit (0.19%, £10 minimum)

JPY Bank deposit (Free, ¥5,000 deposit minimum) - Japan only

CAD Interac Deposit (Free until 3/1/2016, then 1%, $10 CAD fee minimum, $5,000 CAD deposit maximum)

CAD EFT Deposit (Free until 3/1/2016, then 1%, $10 CAD fee minimum, $50 CAD fee maximum, $10,000 CAD deposit maximum)

Deposits made using the traditional banking system will take anywhere from one to three days. Bitcoin deposits require six confirmations, which is about one hour.

Now, navigate to the “Trade” tab. Using the black bar at the top of the page, you can switch trading pairs. In this example we’ll use XBT/USD. We want to buy bitcoins, so let’s put in an order. Navigate to the “New Order” tab.

Let’s say I’ve deposited $300 into my account with a USD bank wire. In the example below, I’ve submitted an order to buy 0.5 bitcoins (XBT) at a price of $370 per bitcoin.

4. Trading Risks

Bitcoin trading is exciting because of Bitcoin’s price movements, global nature, and 24/7 trading. It’s important, however, to understand the many risks that come with trading Bitcoin.

 - Leaving Money on an Exchange

Perhaps one of the most famous events in Bitcoin’s history is the collapse of Mt. Gox. In Bitcoin’s early days, Gox was the largest Bitcoin exchange and the easiest way to buy bitcoins. Customers from all over the world were happy to wire money to Mt. Gox’s Japanese bank account just to get their hands on some bitcoins.

Many users forgot one of the most important features of Bitcoin—controlling your own money—and left more than 800,000 bitcoins in Gox accounts. In February 2014, Gox halted withdrawals and customers were unable to withdrawal their funds. The company’s CEO claimed that the majority of bitcoins were lost due to a bug in the Bitcoin software. Customers still have not received any of their funds from Gox accounts.

Gox’s catastrophic collapse highlights the risk that any trader takes by leaving money on an exchange. Using a regulated Bitcoin exchange like Kraken can decrease your risk.

 - Your Capital is at Risk

Remember that as with any type of trading, your capital is at risk. New traders should start trading with small amounts or trade on paper to practice. Beginners should also learn Bitcoin trading strategies and understand market signals.

5. Bitcoin Trading Tools & Resources

Cryptowatch & Bitcoin Wisdom – Live price charts of all major Bitcoin exchanges.

Bitcoin Charts – More price charts to help you understand Bitcoin’s price history.

bitcoinmarkets – A Bitcoin trading sub-reddit. New users can ask questions and receive guidance on trading techniques and strategy.

TradingView – Trading community and a great resource for trading charts and ideas.

Hello everyone, due to this crisis I see that many traders are afraid about what happened in  the market  and some of them wondering like that, Is this the right time to buy or sell ? What should I do ? ...

I know that this period is difficult for everyone, so I want to advise every trader who is scared , confused, and  hesitant... :

1- The only one who can help and save you is yourself:
If you help yourself, then you will not need any advice from others.

2- You should see it as it is ( the loss )  , not worse than it is :
Do not complicate it, the problems ( losses ) exists in all fields, but when you do not give it a big size, then you can overcome any issue.

3- You must accept the truth ( Big fall), and deal with it ( intelligently) :
Things always change, but you must always adapt to each new situtation.


4- Take the right vision about the whole situation:
You must have a global view of the market, and  the situation must  be studied well.

5- You must give more  than you expect to receive :
When you give a great effort and do not even think about the result , then you will achieve what you want or more than it is.

Hope these tips will help everyone.

What do you think guys?