Bitcoin is a cryptocurrency and thus works on the basic principle that it is generated through the mining process using a lot of CPU power to solve the blocks. So a Bitcoin trader is a person who generates his own Bitcoin using his personal workstation or buys Bitcoin from an exchange that is readily available.
Usually it so happens that most of the traders trade on different exchanges, while it is only some big companies that have deployed servers and workstations exclusively to crunch out new Bitcoin tokens day and night.
How to Become a Bitcoin Trader
1. Choose an Exchange/Service Provider: The first decision towards becoming a Bitcoin Trader is to go with an exchange like GDAX, Binance etc. by yourself, or to start with some service provider like executium.com who allows you to trade on multiple exchanges.
2. Decide on an amount: Next important step is to decide on your initial investment, the money that you would like to start with. You will have to deposit this as fiat money, on the exchange or with the service provider, to get Bitcoins in return so that you can become a Bitcoin trader. If you go with service providers like executium.com, you can first practice the free demo, and they even offer 0.002 BTC free on signups.
3. Build a trading plan: Once you have the Bitcoin in hand, you can build a trading plan based on your research and go by the consultant’s advice, if you are hiring any such service. You can go for an aggressive or passive market strategy depending upon your own choice as a Bitcoin trader.
4. Place a trade: Finally you do what it takes to become a Bitcoin trader. You place a trade. Bitcoin Traders usually use web trading platforms, available on the websites of the exchanges or on the websites of the service providers. You will have to enter the amount that you want to trade. A Bitcoin trader usually defines the close conditions for the trade: both stop and limit. Stops are for adverse scenarios and limits are for favorable market movements.
5. Withdraw or re-trade: Whatever are your proceeds as a Bitcoin trader, profits or losses, you can either withdraw them, getting them converted back into fiat money, or you can use them for further trades. If, as a Bitcoin trader, an investor invests in multiple exchanges, he/she can withdraw the figure in Bitcoin form as well, and then use it to trade again.
Who Should Be a Bitcoin Trader
Anyone who can spare out some extra cash must ideally invest a part of it in cryptocurrency, specifically Bitcoin. Bitcoin is the hottest trading instrument these days, even hotter than the stocks or oil trades. So although it is not guaranteed, yes it promises huge returns on even small investments. The last decade has seen many people making fortunes as Bitcoin traders, and even now, the market is ripe and well suitable for trade. If you are hesitant and have never done this before, opt for a service consultant who specializes in Bitcoin, like executium.com.