Bitcoin trading is one of the best ways to make money out there today. If you need some extra cash but you do not know how to go about getting it, then you should consider going into trading bitcoin. It is one of the best money-making methods to consider for those looking for a way to make money online. You can make it your main source of income and it can also serve as an alternative. You can even sack your boss if you become an expert and a success in BTC trading. The purpose of this write-up is to enlighten you on how to become a successful bitcoin trader. Continue reading to get enlightened.
Best Bitcoin Brokers in Canada
Learn about technical analysis
You need a good knowledge of technical analysis for you to be a good bitcoin trader. So, everything you can do to learn about technical analysis is must be done. You will surely become better for it. Bitcoin is not under the control of ay bank or central government.
As a result of this, manipulation is minimal. Other assets like Forex and stock can be influenced by economic news. This is never the case with bitcoin. So, the major thing you need to understand in bitcoin trading is technical analysis. Price behavior in BTC trading is purely speculative.
Technical analysis will help you to make the right trading decision at all times. Good knowledge of price action will help you to always make the right trading decision.
Do not rush
You should avoid rushing if you want to be successful in bitcoin trading in Canada. You should shun the thought of making a lot of money from day-1. This is even a mission impossible. So, you should seek to grow gradually and built your portfolio little by little. You should always bear in mind that trading is not a sprint but a marathon. If anyone tells you that you can make millions from BTC trading overnight, that person is deceiving you. You need to develop a strategy and stick to it. If you have a good strategy, just allow it to guide you. Even if you trade 24/7, you will not become an overnight millionaire by trading bitcoin in Canada. You can only seek to make progress gradually.
Beware of news events
One other very important thing to consider when you want to trade bitcoin in Canada is news events. As we mentioned earlier, news events do not affect the prices of bitcoin. Be that as it may, some unexpected events can end up affecting the prices of bitcoin. For example, the value of bitcoin can rise when the value of the USD falls. This is because some investors losing interest in the US dollars may end opt for bitcoin. Some economic news that relates to bitcoin should call for your attention. For example, the value of bitcoin can rise or fall depending on how countries accept or reject cryptocurrencies. You should look for trading platforms that provide live news feed so that you can get helpful updates.
Use stop loss
You must never make mistakes to trade without stop loss when trading bitcoin in Canada. Stop loss will help to reduce loss and help to protect your account. You cannot say if that trade will go in your favor or against you. So, stop losses will help to control the loss you incur in case things go against you. Bitcoin trading is highly volatile. This volatility can help you to make money from BTC trading. It can also lead to losses for you. So, you need to be very careful when trading bitcoin.
One of the best ways to tread carefully is to always use stop losses. Aside from stop losses, make sure that you also use take profit. Take profit and stop loss will close the trade in profit or loss respectively. This will help to save your account from serious loss. It will help to also grow the account gradually.
When you use stop loss and take profit, you will not fret at all each time you enter a trade. Stop loss and take profit will help you to set and forget. It will give you confidence that the loss will never go beyond a particular level. It will also assure you that the trade will close automatically when the process reaches your take profit. So, there is nothing to worry about when you use stop loss and take profit in your trading.
Use leverage carefully
Leverage can make bitcoin trading in Canada very interesting. It can boost how many positions you can control. If you use a leverage of 50:1, for example, you will be able to control a position of $5,000 if you have a capital of $100. Aside from boosting your capital, it will also boost your profit. Be that as it may, leverage can work against you. Leverage is a two-edged sword. This means that it can increase your profit or increase your loss. So, use it with care when you are trading bitcoin in Canada.
Bitcoin trading is one of the best investment methods you can ever venture into. If you are looking for a way to make an extra source of income, you should consider trading bitcoin. Everyone is welcome in the BTC trading world. You will also not need a lot of money to start trading. Be that as it may, you will need a lot of knowledge to trade bitcoin successfully. So, you must continue to read and get new ideas about trading.