Steps to trading bitcoin
1. Open an account
To trade CFDs, you’ll first need an IG trading account. It only takes a few minutes to get set up, and you can take your first position as soon as you’ve added funds.
Keep in mind that, unlike if you were to buy and sell bitcoin, you won’t need an account with a bitcoin exchange. That’s because you trade on the prices offered we derive from multiple exchanges on your behalf.
2. Build a trading plan
You’ve chosen a trading strategy, but if you’re new to the markets you might want to consider a trading plan as well. A trading plan can help you make objective decisions even when the stake are high, so that you don’t leave trades open too long – or close them too early.
Here are a few tips for creating a plan:
- Set out what you want to achieve from your trading, broken down into short and long-term goals
- Decide your acceptable risk from each trade, as well as how much you are willing to risk overall
- Pick a risk-reward ratio, so you know how much potential profit you need to justify your potential loss
- Choose which markets you want to trade. Do you want to start with just bitcoin, or try a few more?
3. Do your research
Before you start trading, you need to make sure you’re up to speed with the latest bitcoin news, in order to best understand what’s next for the cryptocurrency’s price.
When it comes to interpreting bitcoin’s behaviour, charts can also be an invaluable tool. Past data can help you make sense of how the market is moving, while comparing timeframes may provide a closer insight into emerging trends and patterns.
4. Place a trade
Once you’ve settled on your position, you’ll need to place a trade
You’ll enter the amount you want to sn your trade in the deal ticket. You can also define your close conditions: set a stop to close your position when the market moves against you by a certain amount, or a limit for when it moves in your favour. Stops and limits are central to good.
If you expect bitcoin to rise in value, you'll then ‘buy’ the market. If you think it will fall, you'll ‘sell.’
Posted by :
Adebunmi Ezekiel
April 21, 2020
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