There comes a time in everyone’s trading, when you make a decision to trade a certain asset. Over the last few years and possibly the decade one of the strongest assets to be trading in is bitcoin. This is one asset that’s been under speculation and regulation for many years and is still trying to become the asset of the future. There are a lot of people who think bitcoin is just a Ponzi scheme while others believe it is something to compete with when it comes to the future. We’ve been watching gold all our lives and now there’s something to be said about a digital currency that can make lives in the financial system much stronger. Now is your chance to learn how you can gain access to bitcoin trading and other cryptocurrencies.
What Makes Bitcoin Move?
The question many people ask about markets that trade assets are how the price moves. On a regular stock, for example, Apple, you can expect the price to move up and down based on the supply and demand of buyers and sellers. With such a mass-market in terms of bitcoin, it is really difficult to fully understand how price action should be. Although there are plenty of manipulation situations that come about, you’re more likely going to see prices move based on exchanges versus the actual coin itself. Prices on the exchange will definitely move up or down based on what people want with the asset. In terms of bitcoin, you can expect major swings both up and down.
Certain market conditions such as a news event can trigger the price of bitcoin up or down. If one country decides to not allow bitcoin in their financial system, you can expect the price of a bitcoin to drop dramatically. However, on the other side, if regulators agreed to work on things that accept bitcoin, you can expect prices to rise dramatically as well. There are a lot of different things that can make the price of bitcoin move. It’s up to the trader to decide how and when to trade it.
Short Term Trading
If you plan on trading bitcoin on the open market you have to select a broker that works for you. Sometimes you will want to take trades only for a few seconds or even a few minutes. In terms of short-term trading, this is quite possible. There is so much price action in the price of the coin that you can be in and out of trades all day long. You have access to the markets 24/7. This gives you plenty of time to decipher what you want to trade and at what time.
Long Term Trading
If you’re someone that likes to trade for a longer period of time there are definitely trades to be made. You can look for trades that will go over a course of months or years just like you would if you are trading and asset such as a stock. If you think the price of bitcoin will rise over the next couple of years then you will be considered a long-term trader. Having access to bitcoin on your exchange will determine if you can trade it for the long haul.
How to Trade Bitcoin without Owning It?
If you are not interested in owning bitcoin itself you do have some options available. There are plenty of brokers and exchanges out there that allow you to trade the asset without actually owning it. Unlike the stock exchange, where you actually own shares of stock, you can trade the derivative of the stock or in this case bitcoin. You can trade the price action based on the model that you are looking at. No matter what happens when you buy and sell bitcoin you don’t actually take ownership of it. All you are doing is setting a price of entry and exit price for the broker to fill your order. Brokers such as IQ option can handle your trades for you at any given time. They are full service broker allowing you to trade bitcoin throughout the week.
There are plenty of ways you can start trading bitcoin. Understanding whether you want to own the asset or just trade it are two different things. Keep in mind, the risk of trading an asset like bitcoin. We see price swings of $10,000 in one day so be aware of the movements you might face. At the same time be aware that you can also make a ton of money if you know what you’re doing and play the market correctly. Good luck with your trading.