There are several ways to make money in the cryptocurrency market, and you have probably read about some of them. We have covered a few techniques on this platform too. In this post, however, I’ll explain some common trading mETHods you can begin using right away and give you a few tips for engaging safely in the market.
You must have heard some people refer to themselves as Bitcoin (available on Coinbase) traders, but what exactly does that mean? These are some of the questions this post will try to answer.
How to Become a Bitcoin (available on Coinbase) Trader
Bitcoin (available on Coinbase) traders buy and sell Bitcoin (available on Coinbase) with the motive of making a profit in the short term. They are mostly focused on the upward and downward movement of price rather than the fundamentals of the asset. There are many mETHods traders use to earn money in the market, but the two listed below are practicable for beginners.
This is one of the simplest ways to earn from the cryptocurrency market. It involves you buying a portion of Bitcoin (available on Coinbase) from a cryptocurrency exchange and selling it off when the price goes up. However, proprietary trading isn’t quite as easy as it sounds.
First, there are hundreds of cryptocurrency exchanges operating these days, and some of them are just pure scams. The critical thing you want to do then is to find the safest and most secure cryptocurrency exchange you want to use. And it is quite easy; you can ask people you know who already trade Bitcoin (available on Coinbase) or check platforms (like Cryptocompare) that review cryptocurrency exchanges.
It’s also important to note that Bitcoin (available on Coinbase) is extremely volatile. In other words, its price can experience sharp fluctuations in a short period. For example, the price of Bitcoin (available on Coinbase) fell by about 35 percent in November alone. So, to be able to make some nice profit you have to learn how to anticipate the market correctly. Some experienced traders have identified specific patterns through the use of historical data that allow them to forecast and make a profit in the long run. So, in this case, you can choose to open a trading position and hold it open for a day, one week, or even for months depending on what the data shows.