Bitcoin trading has evolved into a lucrative income generator for millions of people around the world. It isn’t exactly a no-brainer type of income generator, though. If you are new to Bitcoin trading, here are some guidelines (such as the value of btcnitro.com in facilitating speedy transactions), you’ll want to have in your arsenal of knowledge.
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Gauge Your Risk Carefully
Since the market is so volatile and the money you trade is required to be kept on an exchange primarily, instead of in your bank account or wallet, you should consider only using your disposable income (money that you won’t need any time soon) to trade. This is one of the safest ways to start your bitcoin trading career. As you reap returns from your initial investment, you can consider increasing the value of your bitcoin portfolio.
Craft A Trading Plan And Stick To It
Take some time to come up with your own bitcoin trading strategy and try not to stray from it. Each strategy takes a while to produce results. Your trading plan or strategy may be informed by technical or sentimental factors or even a combination of both. What is important though, is that you break the strategy down into a simple and actionable approach. An example of an actionable bitcoin strategy is ‘ When btc price is lower than the Mayer Multiple but still maintains a positive MACD indicator for the week –buy.’
You may, however, need to change strategies when it becomes apparent that one you’ve been using isn’t working. To avoid this altogether, you should test the plan you select before deciding to stick to it. To test your plan, you can measure it against historical market data to see how it performed in the past. That should give you a pretty good idea of how it will perform in the future.
Track Your Performance
A successful bitcoin trading strategy must include accurate and detailed records of your daily activities and their results. This bitcoin strategy diary will help you to see the moves that produce positive results and those that don’t. In other words, you will be able to see a pattern that shows how successful your trading exploits are.
Be Watchful
Watch the market carefully. Bitcoin value changes very rapidly, making trading in this virtual currency very tricky. You must be meticulous and pay attention to every detail that impacts the industry. The highs and lows in bitcoin value will play a crucial role in determining whether you buy, sell, or cash out.
Speed Is Important
Since bitcoin is pretty volatile, swift movements are crucial to your success. A great way to speed up bitcoin transactions is to engage the services provided by entities such as btcnitro.com.
A popular tool to speed up bitcoin transactions is a tool called replace-by fee, which has been integrated into most bitcoin wallets. With this bitcoin wallet feature, you can recreate an unconfirmed transaction using a higher fee. Provided there has been no network confirmation of the transaction, it can be resent to your account. This tool is great for speeding up transactions that get stuck due to network congestions.
