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Bitcoin Trading Guide: How to Trade Cryptocurrency and Make Profit

21 Jul, 2023
Bitcoin Trading Guide

Bitcoin has gained immense popularity as a cryptocurrency across the globe. Its price skyrocketed from $0.01 in 2010 to above $40,000 by late 2021. Bitcoin's journey has been characterised by drastic price surges and subsequent bursts, maintaining consistent market volatility. This unpredictability and associated high risk highlight the importance of approaching Bitcoin trading with caution, whether one is a beginning or expert trader.

What is Bitcoin (BTC)?

Bitcoin trading

Bitcoin (BTC) is widely recognised as the world's first and most valuable cryptocurrency. It's renowned for its high volatility, with the price often experiencing significant fluctuations. Therefore, individuals who engage in Bitcoin trading should thoroughly understand how Bitcoin operates. This knowledge will enable them to navigate Bitcoin's movements effectively, allowing for cautious and vigilant trading that maximises potential gains.

"When did Bitcoin start trading?" you might ask. Bitcoin (BTC) has been in the market since 2009, when it first traded at approximately $0.0008. In 2011, the coin surpassed the $1 per 1 BTC milestone and embarked on a volatile journey from there. When learning how to trade Bitcoin, it's crucial to remember that prices can fluctuate in both directions. 


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What is Bitcoin Trading?

Bitcoin trading involves buying BTC to sell it within a short timeframe, which could be as brief as days, hours or even minutes. The high volatility of BTC allows for the possibility of achieving a favourable return in a very short period. However, it's important to note that losses can occur just as rapidly. One significant advantage of Bitcoin trading is that it can be conducted 24 hours a day, 365 days a year. 

There are two primary methods for trading BTC: scalping and swing trading. 

  • Scalping involves buying and selling to maximise profits from small price movements. Scalpers closely monitor prices to identify favourable opportunities. 
  • Swing trading is typically the preferred method for non-professional traders. It involves attempting to predict market movements and holding onto an asset until it reaches an optimal price before selling. This timeframe could range from days to weeks or even months after the initial purchase.

What are Bitcoin's features?

Bitcoins offer direct benefits:

  • You get freedom from government control, banking intermediaries and inflation. 
  • Bitcoin transactions are tax-free and faster than traditional bank transfers. 
  • Bitcoin accounts are easy to use, and alternative units like MilliBitcoin and Satoshi exist. 
  • Various wallets and tools are available.

When you start learning how to start Bitcoin trading, you should be aware of the Bitcoin trading bot notion. This is a programme that executes trades based on pre-configured indicators and parameters. These include market indicators, trading volume, price and order book data. Once set, the bot monitors the market and automatically executes trades when conditions align.

For example, a simple strategy based on moving average crossover can be used, where buying occurs when the fast-moving average crosses above the slow-moving average, and selling occurs when the opposite happens. Trading bots simplify monitoring and decision-making processes, while more complex strategies consider additional factors and signals.


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How to start Bitcoin trading

Bitcoin trading involves buying and selling Bitcoin on an exchange platform. There are multiple ways to trade Bitcoin, including through cryptocurrency exchanges and derivative financial instruments like Contracts for Difference (CFDs).

How to start Bitcoin trading

Trading Bitcoin through CFDs allows traders to speculate on price movements without actually owning the coins. CFDs offer flexibility and the ability to take both long and short positions in Bitcoin by utilising leverage. Before starting Bitcoin trading, gathering sufficient information, understanding the associated risks, and being aware of regulatory laws that may impact your jurisdiction and decisions are important.

This is how to start trading Bitcoins: 

  • To begin trading Bitcoin, you need to sign up for a cryptocurrency exchange like StormGain. Such exchanges have user-friendly interfaces and support many coins, including Bitcoin. Simply provide your personal information and complete the necessary Know Your Customer (KYC) requirements.
  • Once you have registered with a crypto exchange, the next step is to fund your account through bank deposits, peer-to-peer (P2P) transfers or wire transfers. 
  • After depositing funds, you can choose the quantity of Bitcoin you wish to purchase for trading purposes. With sufficient Bitcoin in your account, you can start trading according to your chosen strategy. Some cryptocurrency exchanges also offer Bitcoin trading bots to assist in automated trading and help achieve your trading objectives. 
  • You may need to store your BTC on the exchange for easy access if you're an active Bitcoin trader. Alternatively, you can purchase a specific Bitcoin wallet if you plan to hold the coins longer. There are two main types of digital wallets: software wallets and hardware wallets, each with its own advantages and disadvantages.

Building a Trading Plan

Creating a trading plan is crucial for successful cryptocurrency trading. It helps you navigate high-stress markets, make rational decisions, and analyse past trades. Here's a quick guide to making a trading plan:

  • Define your goals and objectives. Determine what you want to achieve in trading, such as long-term trades or day trading, risk preferences, and profit expectations.
  • Use fundamental and technical analysis. Study market conditions using fundamental analysis (e.g., blockchain metrics) and technical analysis (e.g., price charts and indicators) to evaluate cryptocurrency value and predict market movements.
  • Select cryptocurrencies and determine position sizes. Consider market trends and volatility to choose the cryptocurrency to trade. Decide on position sizes in advance to manage risk effectively.
  • Set entry and exit points. Calculate entry and exit points based on technical analysis. Identify profit targets and rational exit levels, avoiding overly restrictive rules.
  • Develop a risk management strategy. Determine the amount of capital to risk per trade and use stop-loss and take-profit orders to limit losses and secure profits.
  • Implement and monitor your plan. Test your plan with small trades before applying it to larger ones. Stick to the rules and remain disciplined, monitoring trades to ensure they align with the plan.
  • Evaluate and adjust your plan. Continuously evaluate your plan's efficiency, keep trade records, and make adjustments as needed to improve your trading skills.


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How to Trade Bitcoin on StormGain: Step-by-Step Guide

StormGain lets you trade Bitcoin through the app or web platform. Decide which one works best for you. So, how to trade Bitcoin and make profit? Let's find out step by step. 

Step 1: Register and fund your account 

To begin, you'll need to register with StormGain. Use your e-mail address and create a password to create an account. Once registered, you can replenish your balance using a bank card through Simplex or another crypto wallet. 

Step 2: Start trading BTC 

After your account is funded, you can start trading Bitcoin on StormGain. Choose the BTC trading option and begin your trading journey. 

Step 3: Utilise trading signals 

To maximise your profit potential, take advantage of the trading signals available in StormGain's mobile app. These signals provide valuable insights and guidance for your trading decisions. 

StormGain Bitcoin trading
StormGain Bitcoin trading

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Bitcoin (BTC) / Tether (USDT) Trading


Why Trade Bitcoin with StormGain

StormGain offers a convenient and user-friendly interface for investing in major cryptocurrencies. It has clear and low-interest fees, with zero commission for account maintenance and platform usage. 

The platform provides 24/7 access to trading tools across different devices, allowing users to trade anytime and anywhere without technical difficulties. Security is prioritised, ensuring safe and secure trading.

Additionally, users can add funds and purchase cryptocurrency using their credit cards through the Simplex system. Depending on the chosen programme, users can enjoy additional benefits compared to a standard account, such as +500x leverage and the ability to add funds and pay with Simplex and debit/credit cards.


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Exchange BTC

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Want Bitcoin for free?

Try our Bitcoin Cloud Miner and get additional crypto rewards based on your trading volume. It's immediately available upon registration.

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How do I trade Bitcoin?

To trade Bitcoins, follow these steps: 

  1. Create an account on a Bitcoin exchange, like StormGain. 
  2. Confirm your identity. 
  3. Add funds to your account. 
  4. Initiate your first trade on the exchange (i.e., buy or short-sell).

Is Bitcoin good for day trading?

Day trading has the potential for high profitability, but it can quickly become a nightmare if you jump in without a solid understanding of its operation. It's important to recognise that day trading is a complex route to making money. Invest time learning about the mechanics of day trading and the various factors that influence market prices to increase your chances of success.

Can you trade bitcoins for cash?

You can convert Bitcoin into cash by using a cryptocurrency exchange. This is a convenient option if you already use a centralised exchange and store your cryptocurrency in a custodial wallet. Simply select the coin and the amount you wish to sell, accept the offered rates, and you will have access to your cash.

Is Bitcoin trading safe?

Making money from an investment relies on the purchase and sale prices of the asset. Selling at a higher price than the purchase price generates profit while selling at a lower price results in a loss.

Where can I buy Bitcoin? 

StormGain is one of the best cryptocurrency platforms for leveraged trading and investing. To purchase Bitcoin on StormGain, simply create an account and locate the 'Buy crypto with credit card' option in the app or web platform. Then, use your debit/credit card to acquire cryptocurrency and deposit funds into your account.

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