Bitcoin trading can be done in two ways. You can either buy bitcoins and sell them later for a profit or speculate on the value of bitcoins without actually owning any of them. When you do the latter, you are trading Bitcoin CFDs, which is quickly emerging as a popular way to trade bitcoins.
CFDs are leveraged financial instruments that allow you to trade contracts based on the price movements of underlying assets. However, you should exercise caution with leveraged products because they can magnify your losses just as they boost your profits.
How to Trade Bitcoin
If you are excited about trading Bitcoin, but don’t quite know how to start, here is a simple guide for you:
Step #1: Create an Online Brokerage Account.
You need an online brokerage account for Bitcoin trading. While there is no dearth of online brokers in the trading industry, finding reputed and licensed online brokers can be a challenging and time-consuming task. We advise you to research an online broker really well before signing up and creating an account.
One of the most popular online brokers for Bitcoin trading is IQ Option India. Getting started at IQ Option hardly takes a few minutes, and once you have created your online brokerage account, you can easily open your first trade position.
Step #2: Create a Trading Plan.
Trading plans are important because they help you take the right decisions at the right time. In fact, having a trading plan is just as important as implementing a trading strategy. Here are some tips to help you create an effective trading plan:
- Make a list of clear and realistic short-term and long-term trading goals.
- Determine the level of risk you are willing to take and how much money you can afford to risk.
- Choose a risk to reward ratio to help you determine how much you need to profit to justify the amount you may lose.
- Select the markets you would like to focus on.
Step #3: Do Your Homework
Learn everything you possibly can about Bitcoin and stay updated on the latest Bitcoin news. You can also use charts to help you interpret the market behaviour of the digital currency. Go through previous data so that you can correctly predict the future.
Step #4: Open a Trade Position
The final step is to open a trade position when you are absolutely confident about doing so. You can minimize your risk by using a stop order to automatically close your position when the price is not moving in your favour.
If you feel that the price of Bitcoin is going to rise in the future, you have to buy. If you think the price is going to fall, you have to sell. If you want to close your trade position, you have to do the very opposite of what you did to open it.
Closing trade positions is very easy as IQ Option, or any other online broker, will automatically fill in the details in your deal ticket. You just have to click on the “buy” or “sell” options.
Why IQ Option for Bitcoin Trading
You can trade 27 cryptocurrencies such as Ethereum, Bitcoin, Litecoin, Dash, ZCash, Bitcoin Cash, and others on the IQ Option trading platform. The online broker offers short sell options, excellent leverage for margin trading, and fast payouts and deposits. Moreover, its customer support system is available round the clock.
Here is a bundle of reasons to trade Bitcoin via IQ Option:
- You can access your online brokerage account and open/close trading positions on any device and from any location. You can open an account on iOS or Android mobile devices, laptops, and desktop computers.
- IQ Option encourages new traders to get started with a demo account with $10,000 in virtual money. You can use demo accounts to not only learn about the basics of Bitcoin trading, but also test a new investment or trading strategy.
- The minimum deposit requirement is just $10, and you don’t have to pay the online broker any fees when you make deposits and withdraw your winnings.
- The minimum investment requirement is just $1, which makes IQ Option ideal for Bitcoin traders with a small starting capital.
- You can trade 300+ assets at IQ Option, of which 27 are cryptocurrencies.
- IQ Option is the winner of multiple industry awards, which makes it all the more reliable and trustworthy.
- You can personalize the IQ Option online trading platform according to your preferences and requirements.
- IQ Option offers sophisticated features such as indicators, newsfeed, and trading community to help you learn new ideas and strategies, share your knowledge, and make an informed trading decision.
- IQ Option is home to a large community of over 47 million traders from different parts of the world.
- Over 1 million traders actively invest at IQ Option, making the online broker’s monthly investing volume $380,000,000.
- IQ Option’s successful traders withdraw $10,000,000 from their accounts every month.
Trading Bitcoin via IQ Option
The following is a simple guide to Bitcoin trading via IQ Option.
- Open an Account: Your very first step is to open an account at com. If you are new to Bitcoin trading, we suggest getting started on a demo account, which allows you to practice Bitcoin trading with virtual money. When you are confident about live trading, you can switch to a live account.
- Start Trading:When you are ready to start trading Bitcoin on the IQ Option trading platform, here is what you must do:
- Log in to your online brokerage account and visit the Assets page.
- Choose Crypto from the main menu and IQ Option will display a list of cryptocurrencies.
- Type the amount you would like to invest in Bitcoin and click on the Buy option.
- Monitor your trade position carefully so that you can exit at the most profitable time.
- You can also minimize your risk by setting a stop loss order that will lock in your profits and minimize your losses by automatically closing your trade position when the price moves against your favour.
Leverage Your Position to Boost Your Profits: You can leverage your position to boost your profits, but the leverage available to you depends on your country of residence. While European traders can enjoy a leverage of 1:2, traders from other countries can get a leverage of up to 1:50. The spread depends on the leverage you choose and the current market situation.