What is a Bitcoin trader is something that usually lingers on in the back of the minds of people who are not very well known for Bitcoin trading but have got little clue of it in some manner or the other. Bitcoin fever is rising so high that more and more financial investors are trying to enter into this niche in the hope of making huge sums of money out of the Bitcoin trades. So what is a Bitcoin trader and who can think of becoming one? This article tries to capture some quintessential details about Bitcoin trading and how one can enter this stream if one is thinking of doing so.
What is a Bitcoin Trader
What a Bitcoin trader is, simply implies an investor who buys and sells Bitcoin for Bitcoin, or Bitcoin for any other instrument of trade that is possible, with a motive to earn profit out of it. Primarily, a Bitcoin trader is one who indulges in arbitrage trading, that is buying Bitcoin at one exchange, and simultaneously selling it over some other exchange to gain on the price differential between the two. However, there are many ways that a person can become a Bitcoin trader. Let us look into a few of these.
1. Arbitrage: As stated above, this is the most routine manner in which people enter and understand what a Bitcoin trader is. Simply refer to the simultaneous buying and selling of Bitcoin tokens.
2. Hold: The next one is holding, where people try to buy some Bitcoin for holding it for long periods of time. They make a sale only when the price differential becomes substantially higher compared to the price they had purchased the Bitcoin for.
3. Day Trading: A less risky manner of indulging into a Bitcoin trading transaction is to carry out multiple transactions in the course of a day, so that even small fluctuations in prices can be captured, and there is not much that is put on stake. These transactions are made multiple times in smaller volumes too.
4. Mining: Some investors who are not in a hurry, and are not very impatient and overambitious, use the safest method that is mining, to do some Bitcoin trading. They mine their own blockchain tokens, and once something substantial is accumulated over the ledger, they sell it directly over some Bitcoin exchange platform for fiat. This way there is no risk at all of any losses, unless your blockchain is hacked or attacked by some phishing malware.
How to Become A Bitcoin Trader Pro
It is not tough to understand what a Bitcoin trader is, or how to become one. But the important matter is, can you trade Bitcoin like a pro so as to reap some profits, or are you there in the game just for the sake of it and are losing out more money than you are gaining? People who are new to this field have started hiring online expert consultants for this purpose. Executium.com is one such name that is at the top right now, but there are many more as well, who can assist you as a newbie and transform you into a pro Bitcoin trader very soon.