The trading of Bitcoin and other cryptocurrencies is at its peak since the beginning of this year with a huge daily trading volume, as the market value of the cryptocurrency market at the end of March 2022 reached more than 2.1 trillion US dollars, which shows the extent of interest from investors This market and their desire to benefit from it as much as possible.
Together, and through this article, we will explain how to trade Bitcoin for beginners and other cryptocurrencies with more hosting on the foundations of short-term and long-term investment in the cryptocurrency market, what are the most important risks surrounding this market and what are the most important strategies that you, as a beginner, are interested in taking into consideration in order to benefit according to the opportunities available to you, Which have a contribution to achieving your goals, whether directly or not.
What is bitcoin trading?
Like other financial markets, The bitcoin and cryptocurrency trading market works on the basis of buying and selling digital currencies, just like the forex market, stocks, and others.
For example, You can trade on the BTC/USD pair by placing a buy order, for example at a certain price, and based on your trading strategy, you close the position after some minutes or hours at a certain profit margin that you specified in advance, It is also for you as a cryptocurrency investor that you can take a sell order when you see according to your trading strategy that the price of a particular cryptocurrency will go down.
The bottom line, The cryptocurrency trading market is just like the foreign exchange market known as Forex .
Advantages of cryptocurrency trading
Let’s get acquainted with the most important advantages of learning how to trade Bitcoin and cryptocurrencies in general.
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Short term & long term trading:
In this article, we mainly focus on short term bitcoin trading for beginners. But it is also important to note that the cryptocurrency market is on its way to expanding and accommodating many, many companies and individual investors. So you should consider the idea of long-term investment in Bitcoin and other highly valued cryptocurrencies.
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Leverage:
When using an internationally licensed CFD broker to trade Bitcoin and other cryptocurrencies, You will have the ability to apply “leverage” to Bitcoin accounts your own, This means that you can trade with more money than you have in your account, But you have to take into account that this exposes you to great risks and the loss of your capital, so you must adopt a solid risk management strategy and work to implement it without any delay.
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Trade 24/7:
You are here dealing with a market that operates on a daily basis, around the clock, The cryptocurrency trading market gives you the freedom to trade at any time you want, and this is what makes its market value rise and the daily trading volume is increasing, Thus, you can open and close deals at any time.
Cryptocurrency trading risks
Although there are many benefits to trading digital currencies online, However, you also need to think about the potential risks.
- The market is very volatile:
The crypto trading market is very volatile as you can watch a cryptocurrency rise by a large percentage during the day and on the other hand you can decrease by a very large percentage at the end of the day, The percentage increase and decrease may reach more than 50% of its value.
In this way, You must ensure that you master the Take Profit and Stop Loss orders in all your open positions in order to have a healthy control of your trading and account, We also always advise to use a demo trading account initially in order to master a trading strategy and work towards achieving it.
