Cryptocurrencies are a big deal. The price of Bitcoin has grown more than 1,000% since the beginning of 2017 alone, and other altcoins like Ethereum and Litecoin have also seen huge gains. But how can you profit from this growing market? While there are many ways to get involved with cryptocurrencies—from investing in them to mining them—there’s only one way that will let you truly make money: trading cryptocurrencies! In this guide we’ll show you how to trade Bitcoin so that you too can profit from its volatility with confidence and ease.
Understanding Cryptocurrency Trading & Market Cycles
Cryptocurrency is a digital or virtual currency that uses cryptography to secure its transactions, to control the creation of new units and to verify the transfer of assets. The first cryptocurrency to be created was bitcoin, which was released in 2009. Since then, many other cryptocurrencies have been created and are now used by millions of people around the world.
Cryptocurrency market cycles exist because they are driven by real-world events such as government regulation or economic downturns (like 2008). When these factors change, so do prices on exchanges like Coinbase Pro where you can buy and sell cryptocurrencies like Bitcoin (BTC) or Ethereum (ETH). If you want to profit from volatility in this market cycle then it’s important for you understand how these cycles work before investing into cryptocurrency trading yourself!
Which Crypto Exchanges Should I Use?
Now that you’re familiar with the basic terminology and concepts of cryptocurrency, it’s time to learn about some of the most popular exchanges.
- big money rush
How to Capitalize on Crypto Volatility
Cryptocurrency prices are volatile, so you can capitalize on this by trading. You can trade on the long or short side, with a bull market or bear market and rising or falling price, volume and more.
Lesson 2: Learn to Trade Altcoins
Now that you have a basic understanding of how to trade cryptocurrencies, let’s move on to the next step: trading altcoins.
Altcoins are the second-tier cryptocurrencies that are less popular than Bitcoin but more volatile than Bitcoin Cash, Ethereum, Litecoin and Ripple. They’re also referred to as “alt coins.” These smaller-cap coins may not be as liquid as those top 5 coins (which means they’ll take longer for prices to move), but they still offer tremendous potential returns if correctly traded at the right time.
Lesson 3: Find Your Strategy
- Trade size: How much you trade per day and in total.
- Trading frequency: How often you trade.
- Trading style: Do you prefer a more aggressive or conservative approach? What type of trades do you enjoy making, day-to-day or over longer periods of time (e.g., months)?
- Risk management: If your strategy involves large amounts of leverage, how do you manage that risk? What are some things that could go wrong if they did go wrong (e.g., losing money)?
- Trading psychology: Are there any emotions involved with the market that might influence your decisions when doing soapy analysis on charts such as fibonacci retracement levels or Fibonacci extensions/contracts; what about indicators like moving averages which can be used both positively and negatively depending on whether they’re being used for short-term trading signals as opposed to long term trend identification purposes – does anything here seem off kilter from what would be considered normal behavior for someone who isn’t actively trading cryptocurrencies but has been exposed through research efforts online seeking information about how best practices might differ between those two scenarios?
Lesson 4: More Ways to Trade Cryptocurrency
You can trade cryptocurrency on a daily basis. Cryptocurrency trading is a 24/7 market, and there will be opportunities for you to make money at all hours of the day and night. You don’t have to wait until nightfall before you can start trading cryptocurrency; in fact, many traders like to do their trading during the day because it’s less stressful than trying to catch up on sleep after working all day long. If this sounds like something that would appeal more towards your lifestyle than others’, then perhaps it’s time we talk about how you can start making money while sleeping in!
Cryptocurrency exchanges are not based in your country (yet). There are still many countries where cryptocurrency trading is illegal or restricted by law—and this includes some of the largest markets in Europe such as Germany and Spain—but also smaller countries like Denmark that have introduced new rules regarding digital currencies over recent years. While these restrictions may seem daunting at first glance, don’t worry: there are ways around them! For example: if one wants access without having any physical presence whatsoever within its borders then simply use an offshore exchange such as Poloniex which operates out of Curaçao instead.”
Lesson 5: Stay Alert and Prepare for the Unexpected
- Don’t panic.
- Don’t be greedy.
- Don’t be afraid to take a loss.
- Don’t be afraid to take a profit.
If you are making money, don’t sell your holdings too fast—you may end up losing everything! However if you are losing money and want to cut your losses before the price goes even lower (or higher), then this is an opportunity for you to sell all of your holdings at once and make some quick cash! If this happens early enough after buying into crypto currency markets, then having cash in hand could help cushion any major losses that might occur later on down the line when prices fall back down again after gaining momentum from recent gains/losses made during times when market conditions were favorable for trading activity such as those mentioned above where liquidity increased significantly due mostly due increased interest among investors who saw opportunity arise because they knew how volatile cryptocurrencies could be so they wanted more control over their investments while still enjoying some benefits associated with owning these types of assets which include ownership rights over certain digital assets which include Bitcoin itself but also other cryptocurrencies like Ethereum etcetera…