Bitcoin is the topic of the moment, everybody talk about extraordinary results of this cryptocurrency and everyone would have bought BTC when the price was less of 100 dollars. The reality is that a Bitcoin costs about 15.000 $ today, BTC-future is going to be introduced in financial market soon and even more attention will be focused on Bitcoin and cryptocurrencies.
It’s not late to trade Bitcoin, thanks to trading on line platforms every trader can follow the market of the cryptocurrencies and join it, but if you want to trade BTC, you have to know what to do. Here are 5 important rules to trade Bitcoin successfully:
1) Don’t trust the rumors and use a reliable broker
Thousands websites and people are now talking about Bitcoin everyday, you can’t listen everybody and you have to be prepared to take decisions by yourself, selecting good informations and using a reliable broker as www.avatrade.com, which give you right informations by web and by email.
2) The price could rise a lot, be ready to ride the trend
The price of Bitcoin could rise a lot, last rise in H1 timeframe was from 14.407 $ to 16.466 $. You have to be ready to ride a good trend, placing a distant target in the correct way, but a distant take-profit level have not to expose you to excessive risk: decrease the stop-loss level when you can, eliminating the risk of loss as soon as possible, or use a trailing stop.
3) Be prepared to durable flat phases
The price of Bitcoin could have durable flat phases, you should wait a lot before you will see your operation profitable. Be patient and place correctly the stop-loss level: too-near stop loss could be touched by rapid oscillations of the price.
4) Don’t be nervous
The spread on Bitcoin is generally high, due to its low liquidity and high volatility, so you could have your operation at a loss for several hours or days before the trend will probably give you the reason. Don’t be nervous, if you want to trade Bitcoin, you have to be ready to wait.
5) Use low leverage or micro lots
There is no genius in BTC market, it’s a new market and no one is completely ready and informed. The liquidity is very different from forex and other markets, so the volatility of the price of Bitcoin is very high. To reduce the risk, you can use low leverage and/or micro lots. Be careful!