Launching of a digital currency in 2009 brought about a whole new dynamics of how we see currency trading? Digital currency is still seen as a fable by many which have affected its reception negatively. The first digital currency to grace the surface of earth is the “bit-coin’’ which is still the most popular and valuable virtual currency. Some opportunities that digital currencies presents are still being explored but some include: fast and easy to use, curb fraud through transparency. This article intends to enlighten you about digital currency and its various trading strategies. What then are the factors that affect bit-coin trading? Virtual currency markets are very unstable; this presents numerous opportunities along with great risks and uncertainties. There are many factors which affect the performance of the currency in the market which includes: bad press, major event (like change in policy or law) even currency supply.
You also need to know how to easily trade bit-coin? The bit-coin is denoted as “XBT” or “BTC” (X here means international) on trading platforms. Trading digital currencies is very basic, it can be achieved with a tool like your mobile phone or laptop. Once the application is downloaded (offered by various providers), the next step is create an account. When your account is up and running? You would build a trading plan which can be achieved via research and practices on demo option on the application. Finally, you head to the market and begin to place trades and make profits.
What strategies can you apply to trade bit-coin? Strategy is simply your plan or approach that means strategy is quite sensitive; paying attention at this point is highly encouraged. We would look at four basic strategies but also note that you can apply your initiative to mix the strategies to fit a pattern that suits your desired goal. These strategies includes: Scalping: if plan to curtail your exposure to risk, this strategy is perfect for you. You can place multiple trades at minor price gaps. This strategy is aimed at making guaranteed small but regular profits.
Day trading: if you are scouting for short-term trade openings, this strategy is perfect for you. You simply place your trade that would close that same day based on instant predictions. Swing trading: this style of trading favors the risk averse; it takes advantage of market dynamics. That means you need to be very observant and logical to experience success applying this strategy. You need to be on a look-out for trends and when there is a clear formation you set your trade and ply the path unlike there is a possible reverse or decline. Automated trading: subscribers of this strategy are passive traders that mean if you plan to trade part-time this is your best bet. This strategy employs automation via the use trading bots (a set of codes that analyze the market making buys or making sales at right time in bit to make profit for user).
The importance of explaining the different strategies is educate you and you can with experience and practice form your strategy; which can be combination of two or more of the above strategies. You are advised to take your time and develop your right strategy, one that meets your goal.