- by Staff Writer #3
- Filed: Saturday, 21st August 2021
Bitcoin trading is one of the most efficient ways of earning profits. In recent times, Bitcoin has become perhaps the most popular digital asset as per bitcoineras.com, with pretty much every regulated broker like placing this cryptocurrency in their list of tradable assets.In this blog, we will be discussing a few crucial reasons to trade Bitcoin.
Reasons to Consider Trading Bitcoin
1) High volatility:
Rookie traders might consider volatility a bad thing, but that is not always the case. In fact, finding volatile pairs is an excellent way to generate consistent profits.
With Forex trading, it is not always easy to identify these pairs. However, if you have a sound understanding of fundamental and technical analyses, you will never have to worry about Bitcoin volatility. Hence, if you plan to hit it big in the crypto world, make sure that you dedicate a significant amount of time and research to learning these couple of vital techniques.
2) Easy understanding of market movements:
With Bitcoin and other cryptocurrencies, it is far easier to identify the major trends compared to, say, Forex.
Even though you might take a bit of time to understand the market volatility, your demo accounts will allow you to master the trading techniques. You can use demo accounts as your training ground and develop and refine your crypto trading skills. If you have some prior experience with currency trading, you will find Bitcoin trading fairly easy.
3) Lesser vulnerability to news of high impact:
Any Forex trader knows how important it is to perform consistent fundamental analyses. Lack of or insufficient assessment of any fundamental factor can significantly impair your ability to predict the movement of Forex prices. This means that Forex traders need to ensure that they are consistently in touch with every economic news and occurrence across the entire world – else, they might end up losing large chunks of their trading capital.
Bitcoin trading, on the other side, does not require dealing with and factoring in numerous economic updates. All that is important for a Bitcoin trader is to possess a decent amount of knowledge regarding the technical parameters. This knowledge will prove sufficient for Bitcoin traders to make considerable profits through their trading activities. Moreover, you can turn to a number of renowned companies and trade your Bitcoins – yet another effective and straightforward approach to making serious cash.
4) Accessibility to accounts with lower leverage:
If you trade pairs of currency, you will only be able to access trading accounts with high leverage levels. However, using high leverage for market trading can considerably increase your risk.
On the flipside, retail traders involved in Bitcoin trading gain access to accounts with low levels of leverage. Generally, any reputed broker will offer a leverage ratio of 1:2. This means that, even if you are tempted to go for high-risk trades, you will only be increasing your exposure to a limited extent. Thanks to these trading accounts with lower leverage and the low exposure that comes with them, you can limit your risk level. While using low-leverage accounts for Bitcoin trading, it is pretty much impossible to execute an impulsive trade out of emotion.
To conclude, anyone looking to get into the world of Bitcoin trading must ensure that they have sufficient trading knowledge. It is always a good idea to use demo accounts to hone your trading skills until you are confident enough to step into the actual trading market. Find reliable resources that you can use to stay informed about any changes or major updates in the Bitcoin market. Armed with proper trading techniques, up-to-date market info, and rational decision-making skills, you will be able to generate significant profits without taking reckless steps.
* Like to share your thoughts on this article? Please visit the KUMB Forum to leave a comment.
* Disclaimer: The views and opinions expressed in this article are those of the highlighted author/s and do not necessarily represent or reflect the official policy or position of KUMB.com.