Some new traders often wonder what the difference is between trading Bitcoins and another asset. The trading principles stay similar, but the difference comes in how you approach your trading.
For example, if you're trading currency pairs, you must carefully look for any sudden price swings, choose the most appropriate time to execute a trade, and do it. However, the process isn't as easy for Bitcoin and cryptocurrencies in general because these are highly volatile assets. Since Bitcoin is too volatile, it's complicated to make an accurate prediction of what price it's going to have at the time of executing the trade. To put things in perspective, Bitcoin's price can change drastically even a second before you make the trade, which can either benefit or harm your investment.
To manage Bitcoin trading successfully, you must study market behavior more thoroughly as you would do with other assets. You cannot make an exact prediction of Bitcoin's value in the future, but you can make a closer guess, which reduces the chances of making a poor financial decision.
Overall, Bitcoin trading involves fast and accurate decision-making, heavy studying sessions, and patience. If you want to succeed in this type of trading, you must commit.
As with several other types of trading, Bitcoin trading comes with particular risks that you must be aware of before you make any trades. If you don't assess any of those risks, you're likely to lose part or all of your investment. Before you use BitProfit, we want you to be aware of these potential risks, which is why we're going to lay them down in the following list:
An asset's liquidity can determine whether investing in it is worth it or not. When Bitcoin was introduced, its liquidity was low, making it a poor financial investment for many people. Thankfully, its high increase in demand has adjusted its liquidity, making it easier for people to acquire it.
However, there's some competition developing among big businesses regarding Bitcoin. That competition may make Bitcoin's liquidity decrease, and therefore, making it harder to invest in.
As mentioned before, Bitcoin's price is continually changing; this happens due to several reasons that we're going to look further into this page. Bitcoin's volatility makes the trading market uncertain at all times, which can become overwhelming for some people.
The fear of losing your investment can prevent even some expert traders from trading again. To battle Bitcoin's price fluctuations, you must study market behavior as much as you can to reduce the risk of making a mistake.
Since Bitcoin is an entirely digital asset, it relies on the internet to exist. While the internet is mostly a secure space, there are several insecure areas for people. Many people are continually exposed to scammers, hackers, and people who engage in other illegal activities.
If you're not careful with whom you trust your money, you can run into one of those scammers without even noticing, making you lose your hard-earned money. Identifying a scammer/hacker may be hard for a beginner at first, but once you get to know trading better, it's going to become much simpler.
Bitcoin is a decentralized asset, meaning that no banking or government agency regulates it in any way. Considering that, trading platforms have the freedom to manage cryptocurrencies in any way they consider appropriate.
In some cases, that freedom may not affect you, but there are others in which it can. On the other hand, Bitcoin and cryptos are currently taxed in the U.S., meaning that it's only a matter of time until other governments follow the same procedure.
You must verify if cryptocurrencies are taxed in your country or not before you decide to invest.
Bitcoin and crypto wallets are safe for the most part. However, these wallets' heavy encryption could affect you. For example, if you lose your wallet's access key, your funds may be lost forever. Keep in mind that the only way that you have to access your wallet is by using that access key.
Generally, crypto wallets don't work as regular bank accounts in which you can request a password change. If you lose that access key, the provider isn't likely to give you another.
While Bitcoin has a promising future, there's no way to tell the exact way in which it's going to evolve. People who make long-term investments may be affected by Bitcoin's sudden price swings, which is why Bitcoin trading is often considered a short-term investment instead.
Saving on Bitcoins can either be positive or negative, depending on how you manage it. Since Bitcoin's price is changing continually, many people are afraid to sell their funds and wait until its value goes higher. However, you can't tell how high it's going to get, which gets you in a state of constant stress.
A few recurring factors may affect Bitcoin's price positively or negatively as time passes. If you want to make the most out of your trading journey, you must be on the lookout for those sudden events that may affect Bitcoin's price.
Overall, the most common factors that influence Bitcoin's price are the following:
Remember that Bitcoin is still considered a new addition to digital economics since it's a bit more than a decade old. There are many new things to be discovered about Bitcoin, so the slightest event can cause its value to drop or increase exponentially.
Among all these factors, media coverage is one of the strongest ones. For example, if a big company decides to release a statement today in which they accept Bitcoin into their business models, the Bitcoin market is going to go crazy, making its value increase.
A great way to prevent many of the potential risk factors that come with Bitcoin trading is using a trading app, such as BitProfit. This app's job is to monitor the Bitcoin market and report any potential trading opportunities for you.
Trading apps work by using high-end algorithms that take your trading parameters to find these appropriate trading opportunities. Since trading software works with algorithms, it can safely adapt to any changes in Bitcoin's market or your trading strategy. You may use BitProfit if you're a beginner, intermediate, or advanced trader. Our home-brewed algorithm can easily adapt to most trading strategies and scenarios, so you can trade smoothly regardless of your current skill level.
BitProfit solves one of the biggest issues with Bitcoin trading, which is time management. As mentioned before, trading can take a lot of your time, especially if you're a beginner. However, thanks to trading apps, you can minimize the time you spend monitoring the market and use it to study new trading strategies.
Additionally, you may use BitProfit's extra features to optimize your workflow and be more efficient with your trading. Overall, BitProfit is a tool that every trader must have if they want to keep a smooth and comfortable trading experience at all times.
Creating an account at BitProfit doesn't require too much from you. In fact, all you need is a desktop or mobile device, an active internet connection, and a few minutes of your day! Keep in mind that you need to create an account to have full access to BitProfit’s features. Thankfully, this app is entirely free of charge, and you may use it as many times as you consider it appropriate.
To create an account, make sure to follow these steps carefully:
You’re going to find a registration box at the end of this page. Make sure that you enter your real contact information so that we can get back to you via e-mail with the rest of the account creation process.
Once you verify your BitProfit account via e-mail, you can enter the app for the first time and look at all the features it has to offer. We made sure to implement enough features for all types of traders, so choose the ones that you feel the most comfortable with.
Make an investment, finish setting up your trading strategy, and click on the “Trade” button to begin your session! As for the investment, we heavily suggest that you don’t invest more than you can afford to lose.
If you have any additional questions regarding BitProfit, read through this FAQ section to clarify some information!
You may use BitProfit as many times you want during the day. Most traders open the app once a day to set up their trading sessions and leave it for the day. Others check on the app once every couple of hours to ensure that everything is working properly.
We recommend that you check on the app at some point during the day to verify that your trading session is going as intended, and if you notice any detail you want to adjust in your strategy, you may do it quickly from within the app.
In the end, you may choose the option that fits your needs the best.
Trading apps are always a great choice for beginners who want to learn how to trade efficiently, and BitProfit isn’t the exception. We kept the platform simple enough so that beginners don’t get confused by any complex features.
As you work your way up in your trading journey, you may choose to include more complex trading strategies in your session and optimize your trading even more.
Absolutely! You can use BitProfit from any device with an active internet connection; this includes PCs, laptops, tablets, and smartphones. We know how complicated it is to trade while you’re on a schedule, so we made sure that you could take BitProfit anywhere you go.
There are endless possibilities when it comes to BitProfit. We made sure to implement as many useful features as possible and remove any unnecessary options from your dashboard.
Keeping trading simplistic is one of the keys to be more efficient at it, so if you want to work with that kind of trading, make sure to use BitProfit!