Trading Bitcoin – How to Trade Bitcoin?

Bitcoin is the largest, most used, most popular and most volatile cryptocurrency in the market. Its high volatility has made it a popular instrument for traders. Investors and traders are increasingly interested in it, convinced of its important influence on the future of finance. It is therefore essential to know all the contours of the bitcoin trading 2024.

Bitcoin Trading – Bitcoin Trading Methods in 2024

Trading bitcoin includes two main methods, and the most common in stock market trading.

The first method relies on buying bitcoin on the exchange with a wallet to hold it and resell later when the price increases. This is a frequent method that is found as much for equities or other currencies. You will now find several platforms to buy bitcoin like Kraken or Binance for example.

The second method, for its part, is based on the speculation of bitcoin values: we are talking here about trading on CFDs. CFDs make it possible to trade the values ​​of a financial asset without, however, carrying it out in the portfolio. Here, the trader can make profits regardless of the price trend. There are gains when prices go up or when they fall.

Real-Time Bitcoin Crypto Quote and Price

Bitcoin Trading – What Factors Influence the BTC Price in May 2024?

• bitcoin supply. The amount of bitcoins in circulation is 21 million on this date. Which means that only 21 million tokens are sold so far. If demand grows, the price of bitcoins will also rise, and so will if more tokens come into circulation.
• Economic announcements around bitcoin. The influence of economic announcements is no longer a secret for experienced traders. Important announcements have a considerable influence on price progress or simply demand. Announcing that Tesla will start selling its cars in bitcoin, for example, would increase demand for the product. The same is true for other major announcements with strong economic impacts that may be made.
• The integration of bitcoin as a means of payment. Part of the reason bitcoin prices continue to rise is because structures and surfaces continue to accept and consider bitcoin as a form of payment. Whether in large restaurants in Dubai or law firms in London, bitcoin is increasingly accepted by service providers. This acceptance considerably boosts BTC prices.
• Influential people like Elon Musk or Vitali Buterin. These are personalities who alone own bitcoins to the tune of several billion dollars. Their opinions as well as the announcements that are made every day greatly influence the decisions of traders in the market. If announcements from bodies like the FED influence currency prices, the same is true for Elon Musk's Tesla on BTC.

Observing these factors carefully can be very helpful.vantageux to trade it. This way, it could take advantage of major economic data and make significant profits.

Bitcoin Trading – Which Stock Market Products for Trader?

Stock market products are diverse and depend on the economic situation. However, we will see the main stock market products for bitcoin trading.

Buy Bitcoins in Cash on Platforms with Wallets

Buying bitcoins for cash is a trading method that allows you to buy and hold real bitcoins in an electronic wallet. Profiting here requires buying bitcoin when prices are low and selling when the price is rising.

To buy BTC for cash, you must register on platforms such as Binance, Kraken, AvaTrade, BitPanda, etc. These platforms offer electronic wallets to buy and hold bitcoin for as long as desired.

It is also recommended to buy Bitcoin stock.

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Bitcoin CFD Trading with Leverage

Trading bitcoin CFDs is, as we saw above, trading the trend of bitcoin on the stock exchange. It is a question here of observing the trend and betting on the possibilities that the courses evolve upwards or downwards. This is the most common method of modern trading. Traders do not hold bitcoins in a wallet, so they can trade in very short periods of time.

Bitcoin CFD trading incorporates the use of leverage. Traders can then optimize their profits by multiplying the value of the capital invested. Vantage FX offers the best leverage for trading cryptocurrencies.

Trading Bitcoin Futures

Trading futures is one of the best exchange products for trading bitcoin. To trade bitcoin on futures is to trade the price of bitcoin at a future date. The trader agrees to buy bitcoins at a given price on a specific date. This approach incorporates both CFDs and real purchases, the trader has a choice when it comes to future trading in bitcoin.

Bitcoin CFD Trading vs Buying Bitcoin Cash

Bitcoin CFD trading has its avantages, but also disadvantages regarding the cash purchase of bitcoins.

• Bitcoin CFD trading allows you to trade fluctuations in the price of bitcoin without having to have any in the wallet. The trader can therefore open and close positions whenever he wishes, without looking for a client to buy back as is often the case. Even better, it makes gains regardless of the market trend. However, the trader cannot store bitcoins in an electronic wallet.
• Buying bitcoin for cash therefore also has disadvantages, but above all disadvantages.vantages. Bitcoins here can be held securely in an electronic wallet, for as long as the trader wants. Unlike CFDs, the trader only makes gains when bitcoin prices rise. In this case, he can buy bitcoins and resell them when prices rise to make gains.
• Bitcoins purchased with cash can be used to purchase goods and services as needed. CFDs on the other hand are only speculative values, they cannot be materialized. However, with CFDs, it is possible to use leverage, which is not the case with cash buying.

Bitcoin Trading – Which Bitcoin Trading Strategies in 2024?

To be profitable in bitcoin trading, you must have a consistent strategy to be observed daily and strictly. There are, however, two broad standard strategies to follow.

Bitcoin Trading: The Buy and Hold Strategy

"Buy and Hold” means “Buy and Keep” in French. As the name suggests, this is about buying crypto currencies and bitcoin in this case, and keeping it in an electronic wallet. It is a buy bitcoin spot strategy that buys bitcoins that can be held in wallets on platforms like Binance, Kraken, Kucoin, Coinbase and many more.

With this strategy, the trader buys when prices fall, and sells when prices rise. Bitcoins in the wallet can be used to purchase goods or services.

Bitcoin CFD Trading: Scalping and Day Trading

Scalping or day trading are strategies that are essentially based on CFDs.

• Scalping consists of opening short positions lasting 5 to 15 minutes to bet on the progress of BTC prices. Scalping means taking into account slight price fluctuations and betting on very short-term variations.
• Day trading, on the other hand, follows the same logic as scalping trading. However, day trading targets longer durations. It can be 1 to 4 hours of observations. More experienced traders open positions with daily or weekly objectives: we are talking here about bitcoin swing trading.
• Unlike “Buy and Hold”, scalping and day trading does not involve electronic wallets. It is simply a matter of trading the fluctuations in the price of bitcoin based on the flows of supply and demand.

Bitcoin Trading – How Does Bitcoin Trading Work?

Bitcoin trading involves taking speculative positions on bitcoin price movements. It is a practice that mainly incorporates CFDs. To trade bitcoin is to negotiate the various variations of the price of bitcoin on the market.

When the bitcoin price drops, the trader can open a sell position and close them on the various trend changes. The same is true when the price increases.

Trading is a form of negotiation that relies solely on price changes. The trader does not own the tokens, and he does not necessarily have an electronic wallet.

Bitcoin Trading – Why Trade Bitcoin?

There are several reasons for trading bitcoins, and we will take the time to dwell on a few key points.

Bitcoin Trading: A Highly Volatile Instrument

Crypto currencies in general and bitcoin in particular are among the most volatile financial instruments on the market. Looking back, we realize that the price of bitcoin varied from 0 to 20.000 dollars between 2009 and 2017. There was then a rebound and the price fell to 6.000 dollars in 2018. Between the end 2018 and April 2021, the price of bitcoin almost crossed the $65.000 mark. No other financial instrument has experienced such volatility in such a short time.

Bitcoin Trading: Important Liquidity

The liquidity factor essentially depends on the platform on which bitcoin is traded. The majority of reputable platforms that trade bitcoin are quite liquid. This is particularly about Kraken which is considered the largest platform for trading bitcoin in euros. There are also platforms like Coinbase, or Bitpanda which guarantee good liquidity of bitcoin.

Liquidity guarantees the possibility of having access to bitcoins in real time without too many complications.

Bitcoin Trading: The A’svantages of CFD Trading

Trading bitcoin also means trading CFDs. In this case, there is the possibility of investing when bitcoin prices move up and down. All situations on the market are favorable for making profits, you just have to remain attentive to the various price variations.

With CFDs, the trader can also opt to use leverage. Leverage allows you to optimize profits on an open position on the rise or fall. Platforms like Vantages FX offer the best leverage for bitcoin trading.

Bitcoin Trading – What Are the Risks of Bitcoin Trading?

• Too much volatility. When the market is too volatile, it becomes virtually unpredictable. It becomes difficult to predict changes in trends, because the transitional phases of a trend reversal are absent. Sometimes, prices can change trend and go down on the stop, loss before rebounding and reaching the target set on the take profit. Such a situation leads to considerable losses for traders.
• Excessive fees. Bitcoin trading fees are often higher than what is charged on stocks or indices. Brokers also take into account the gains that bitcoin trading generates, but also the risks to which traders are exposed. Too high fees reduce the possibilities of making profits, and put aside the option of scalping. It should be noted that scalping aims for very short durations with small objectives.
• The risks associated with scams. The majority of beginner traders have come up against scammers who are increasingly present in the market. Today, the AMF talks about unregulated brokers, these are fictitious platforms that strip beginners who want to start in bitcoin without expertise.

The risks of bitcoin trading are numerous and it is essential to take them into account before definitively embarking on this activity.

Bitcoin Trading – What You Need to Know to Trade Bitcoin

Bitcoin trading takes into account several concepts that are important to know and master in order to trade profitably.

What is a Spread in Bitcoin Trading?

Spreads are fees or commissions that brokers charge on open positions. They are often calculated as percentages, but also often taken in a fixed manner. The spreads on crypto trading in general and bitcoin trading in particular are often higher than on other products on the stock market. AvaTrade is the ideal platform for trading cryptocurrencies with the best spreads on the market.

Bitcoin Trading – What is a Lot? What is a Pip?

In the case of cryptocurrencies like Bitcoin, the lot is equal to one bitcoin, regardless of its value. The bitcoin lot is equal to €10 when the bitcoin is worth €000. The value of the lot varies at the same rate as the price of the token. Simply put, one lot equals one bitcoin.

If for example, the pip value of the sale or purchase of a cryptocurrency CFD contract is $0.01. So for a Bitcoin CFD account, the pip value is 0.01 euros for a change of 0.01 so when the Bitcoin goes from 9887.30 dollars to 9888.30 dollars, you will have a loss or a gain of 1 euro.

Bitcoin Trading – What is a Bitcoin Trading Robot?

A trading robot is automated software that allows orders to be placed automatically on platforms. Robots work constantly, often 24 hours a day, which constitutes avantage for those who trade cryptocurrencies.

The robots are in great demand by novice traders, but also professionals who want to limit working time. Trading crypto currencies with robots is an alternative for many traders. This claim is justified by the fact that bitcoin trading robots have been flooding the market over the past few years. Several robots have been released, a market with high demand. These include Bitcoin Revolution, Bitcoin Trader, or Bitcoin Era.

Bitcoin Trading – Leverage in Bitcoin Trading

Leverage effects are multipliers that allow you to cover a large position with a lower capital. You will find platforms on the stock market that offer the best leverage effects on the market.

Vantage FX offers the best leverage for trading BTC, as well as other cryptocurrencies in France. There you will find leverages of up to 1:30 for bitcoin trading.

Bitcoin Margin Trading

Margin is a security deposit that the trader must deposit with the broker. Just like leverage, a good margin could help the trader open bigger positions.

It should be noted that, whether it is leverage or margins in bitcoin trading, you have to be very careful about how to use them. A very high leverage can certainly increase the gains considerably, but also the losses when the trader misuses it.

BTC Trading – How Much Can I Earn From Bitcoin Trading?

Several traders appear on board the Yots on the shores of Dubai or Miami. They usually talk about a successful career with multiple placements and various assets. What you need to understand is that bitcoin trading is an extremely profitable business. Revenues in this field of activity are often estimated in the thousands or even millions of dollars.

However, it is important to take into account all the risks involved in trading bitcoins. Just as many show off their gains, we have collected testimonials from traders who have made considerable losses on bitcoin.

In deduces therefore that, trading actually brings a lot of money to traders. However, it is also an activity that presents a lot of risk of significant losses. It is for this reason that it is strongly recommended to trade with amounts that the trader is ready to lose.

Also read: Bitcoin Crypto Reviews

Bitcoin Trading – Train Before You Start Trading Bitcoin

A first training is essential to start trading Bitcoin. Crypto currencies are very volatile and the market is very unstable. Platforms offer tutorials on important topics that allow you to acquire the basics of cryptocurrency trading.

It is also recommended to start with demo accounts where the trader can experience real market situations. The vast majority of bitcoin trading platforms offer demo accounts for traders, especially beginners. Demo accounts allow you to take a considerable advance.

Bitcoin Trading – What Are The Various Wallets For Trading Bitcoin?

• AvaTrade Wallet : this is the wallet that AvaTrade made available to traders. With this wallet it is possible to receive and send bitcoins to other platforms.
• BinanceWallet. Binance is one of the main platforms for buying and storing bitcoins. It is also considered the most reliable platform for buying and trading bitcoins. The rates are affordable and the platform is secure.
• Bitcoin Cold Wallet. Cold wallets are secure wallets that are not connected to the Internet. These are alternatives for the various operations that are done on bitcoin. There are several cold wallets like Ledger Nano X and Ledger Nano S.

Wallets are diverse and serve multiple purposes. The majority of platforms that offer bitcoin trading also offer wallets for the majority. However, you should not always expect to have access to a wallet when you register on a platform. It is for this reason that we always recommend that you take the trouble to check.

Bitcoin Trading – What Was The First Cryptocurrency Released?

Bitcoin is the first cryptocurrency that was put into circulation on the market. Bitcoin was created on January 03, 2009 by Satoshi Nakamoto, a character whose face has never been revealed until today. Even if after him several others followed, bitcoin remains the first and oldest crypto currency.

With a value of $0 to begin with, its prices have evolved considerably in the market. Although its current value is around 58 244,60537200 $ today it had reached 65 in 000. Bitcoin is not only the first, it is also the most important cryptocurrency.

BTC Trading – What are the Main Crypto Currencies?

• Bitcoin : as we have seen above, bitcoin is not only the oldest, but also the most important crypto. With a limit of 21 million tokens in circulation, bitcoin has experienced the highest volatility over time and today boasts a market capitalization of over $800 billion as of January 18, 2024.
• Ethereum. It is a decentralized exchange protocol allowing the creation of smart contracts. ETHER is the token that facilitates trading on the platform and on many other platforms as well. Ether has a market capitalization of $448 billion in 2024, making it the second leading cryptocurrency in our ranking.
• Tether. In third place in our ranking, we will find Tether with a market capitalization of more than 80 billion dollars in 2024. Tether is part of the class of stablecoins, that is to say crypto currencies which are backed by a real currency. Tether is backed by the dollar, hence its symbol USDT.
• The Binance coin (BNB). BNB is a cryptocurrency developed to facilitate trading on the Binance platform. This crypto can be traded on several other platforms, including those that offer bitcoin. BNB has a market capitalization of more than 86 077 048 858 $ and more than 2 billion exchanges per day.

Among the crypto currencies mentioned above, although occupying third place, Tether is the one with the largest daily trading volume. These exchanges are partly due to the fact that it is backed by the US dollar and its situation as a stablecoin.

Bitcoin Trading – Ranking Best Crypto Currencies in 2024?

The choice of cryptos to invest in in 2024 is based on essential factors, but at the bottom, there are cryptos that will always occupy the top positions. Among the most recommended are:

1. Bitcoin, Main Crypto Currency

Many investors perceive bitcoin as the king of crypto currencies. Beyond the fact that we are dealing with the oldest cryptocurrency, the financial data also speaks in its favor.

Bitcoin imposes itself on the market by its rarity, but also and above all by its adoption. On the one hand, there are only 21 million tokens in circulation, which makes it a rather rare financial instrument. On the other hand, the adoption of bitcoin raises it to the rank of the main crypto currencies. As the demand for bitcoin increases, so does the price.

2. Ethereum, a Considerable Major Evolution

Ethereum is godsend for cryptocurrency traders. This cryptocurrency is mainly on NFTs, a new concept that is attracting enough attention at the moment. As a reminder, all eyes are on NFTs and Metavers in 2024.

We can still talk about Tether, Cardano, Polkadot or Solana to mention only the main and most used ones.

Also read: Trading Ethereum

BTC Trading – Evaluate the History and Predict the Progression of Bitcoin in 2024

Bitcoin predictions are based on current events, but also on performance over recent periods. To have a better position on the progression in 2024, it is above all necessary to take the time to evaluate its evolution over the past few years.

Over time, it becomes apparent that the progression over the past four years is greater than that of the past 8 years earlier. Based on this progression, we can predict an even greater progression for the years 2023, 2024, or 2030.