Is bitcoin trading profitable

Profitable Bitcoin Trading Schemes

If you bought Bitcoin, then the question most likely arises of how to increase it. We examined the question of how to make money on cryptocurrency and one of the methods is crypto trading. This method is most attractive for people who study the Bitcoin basics.

It would seem that it could be simpler: bought cheaper — sold more expensive. But all this is colorful only on the channels of people who call themselves crypto experts or crypto traders. There are tons of channels on YouTube, groups in a telegram, private chats and magic bots that predict where the course will go. But here the logical question arises:

“Why share the chicken that lays the golden eggs?”

Those who have made forex trading and have learned from their own experience the «charm» of trading, accept cryptocurrency trading as another scam and this can partially be agreed, especially when it comes to margin trading.

If you have technical analysis skills, then something is possible to earn, but not the X advertised by everyone.

Technical analysis

Technical analysis of bitcoin — is a lot of technical indicators that, in combination with each other, time, stars, tarot cards and fortune telling on coffee grounds, can predict whether bitcoin will go up or down.

Recently, work was done by a well-known professor in the field of finance, who, on a scale of fifty markets, examined with actual data whether there was a significant benefit from technical analysis using the four main trading rules: filtering, moving averages, channel breakdown, and resistance, support levels. Having analyzed and processed the data, an explicit result was issued:

Profit from trading on technical indicators is no more than that which could be obtained from data random changes.

In other words: you can just throw a coin and trade on this indicator. The result will be about the same.

Youtube trading experts

Experts in the field of trading on YouTube is a separate dark caste of society. They differ in the amount and size of monitors on the table and the ability to talk about nothing. Traders can retell textbooks for hours and find patterns on existing charts. But to the question: “So where will the price go?” There will be something smart, but not understandable to others, so that it appears in the eyes of the audience as a great expert. The answer will always be generalized and not clear. Well, they can’t answer, “How I know.”

Then you say: “In the last video, he said that the price would go up and it went.”

The answer is simple: a huge amount of analysis is regularly posted on the traders channel, maybe every day, maybe even several times a day. There is nothing difficult to make one video with one forecast, another with another, see how the market will lead, and then delete the video that was a miss. The result is an ideal channel where all or most of the forecasts come true. Naturally, all unsuccessful trades will be silenced, and commentators who will indicate those forecasts that have not come true will be immediately banned. They follow this very closely.

The same technique works on the well-known TradingView platform. There earns credibility by such schemes and an audience of subscribers is accumulated. It should always consist of new victims, who are still with the dough, and from the old ones, whose money has already been lured, they find ways to bann.

I remind you once again: not a single profitable trader who earns money from trading will waste his time explaining his profitable scheme.

How YouTube traders and Telegram traders actually earn

This answer needs to be sorted out by everyone who is trying to trade Bitcoin on their own necessarily before starting to trade.

There are several areas of earnings for such crypto experts:

Trust management.

Closed telegram channels.

Bitcoin Trading Bots

A trading bot is a program with an algorithm based on indicators of technical analysis. Since the principle of the analysis itself we have already described, we will analyze the scheme of the bot. Bots are offered on a specially created site where you can register, pay for a subscription (the price is approximately the same as for a telegram channel) and, depending on the functionality, either tie up your account for the exchange on the basis of trust or receive notifications from them and perform all operations manually.
There are trading bots that work in conjunction with telegram channels and duplicate their predictions using different methods.

That there are really sensible channels where they analyze strategies and the situation on the market, but all of them are mostly free. They should be analyzed by you and do not need to pay money or give access to your funds to unknown person in any case.

How to trade Bitcoin?

If you still want to get involved in this business, you should study the basic trading literature, develop your strategy, skills and adhere to risk management. In most cases, you still need to trust intuition and fundamental factors. One technical analysis is not enough.

When trading cryptocurrencies, we highly do not recommend the following:

• Give Bitcoins to Trust management.
• Buy all kinds of paid subscriptions.
• Transfer BTC to the fund, any site or service whose account you do not control.

Is it possible to make money on bitcoin trading?

The cryptocurrency market in 2019-2020 is very difficult for trading even for professionals. For a beginner, this area is unprofitable with a high degree of probability. Even if you managed to earn something at the beginning, most likely it will be lost in the course of further trading. If you approach the issue wisely and have your own strategy, not be greedy and not afraid, it’s quite possible to get a small profit, but it will be 100% far from the unrealistic figures that are published on YouTube and telegram channels.

If you are new to cryptocurrency, we would recommend just investing in bitcoin or coins from the TOP-5 and waiting for a further price increase. The Bitcoin exchanger Casherbox strongly discourages cryptocurrency trading for beginners. The probability of making money simply by buying an asset and doing nothing is much higher than trying to trade bitcoin. But it is also worth noting that any operations with cryptocurrency have an increased risk.

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Profitable Bitcoin Trading

Almost a decade now, since 2009, Bitcoin has been part of the web and has been growing ever since. In the early days right after launch, the community of Bitcoin was mainly populated by controversial types like libertarians or internet anarchists who liked the freedom property of the coin.

The internet has no leader and this should also count for a digital form of online money. Another popular property of bitcoin is that it’s a digital asset and therefore one could trade with it.

Back in 2013, the value of bitcoin blasted through the 1000$ barrier for the first time. This was the start of cryptocurrency being introduced to a bigger audience. The 1000$ border was a very important psychological barrier.

By breaking this barrier and gaining popularity also new coins were being introduced to the market. Since then the total market cap of the total cryptocurrency market has been grown from about 7 billion at the end of 2013 till 135 billion nowadays.

Interest Of New Traders

As we all know right now the cryptocurrency market has grown immense but also had a lot of bearish crash moments were daily selloffs of 20% were no exception. This volatile market with no rules or central leadership gained a lot of interest from bold traders worldwide trying to conquer with this ‘online money beast’.

Of course, there is a lot of risk in this market but also a lot of profit to make!

One of those ‘bold traders’ trying to win this zero-sum-game in my favor. In the early days of bitcoin back in 2013, Many participated mainly as an investor or ‘HODLER’ of bitcoin. Since 2016 I also got more interested in altcoins and started to buy Ethereum, Litecoin, and other cryptocurrencies.

Some options were Poloniex, Kraken and Bittrex.

One of the advantages of Kraken is that I could open a euro account to buy Bitcoin and deposit or withdrawn Euro. This differs from Poloniex and Bittrex where you can only lock your BTC profits in USDT or Tether.

So how do we start from here as a new bitcoin trader?

Do Research and Choose a Platform

So when you are new to this or do not have much experience with trading cryptocurrency all possible online trading platforms out there could be a little bit overwhelming.

Donot worry too much about that. Currently, the biggest and most reliable exchange out there, in my opinion, is Kraken.

This online trading platform has its headquarters in San Francisco, California. With more than 4 million customers and low transaction fees. So, it is a very good option to start.

All you have to do now is setting up an account there and you are good to go. Before you start buying into coins, it is very important to do some research.

There are several ways to do this but a good place to begin with is Coinmarketcap.

This website gives in a glimpse a total overview of the current market and has hyperlinks to every coin out there. Also, do some research into the technology of blockchain networks.

So now that I have a setup a trading account and have done my research, am I ready to go and start getting profitable? The answer is no.

Start Using Twitter

Nowadays social media is being used particularly by every human being under the age of 40 and to be profitable trading crypto, it is a must to have social media to get the most actual information about the markets.

The best place to go is Twitter, so it is crucial to set up an account there. On a daily bases, a lot of information is being shared by professional traders and it is very easy to start following them.

Here are some Crypto Twitter accounts to follow:

Technical Analysis

After you have done all this setup, you are ready to enter the world of the crypto traders. In my opinion there are two types of traders: long-term trader (swing trader) and short-term traders (daily).

It is up to you to choose which best fits your character. Whether you choose to trade short-term or long-term you need some extra tools to make good buying decisions.

First you need to know how to do technical analysis which is the study of price patterns. A good place to learn this is Investopedia. There are also several tools out there for using daily charts, but the most popular is Tradingview.

You can start there with technical indicators in your charts.

Implement a Trading Strategy

If you are willing to trade and donot have the patience to ‘HODL’ bitcoin for years, to be profitable in this volatile market, is to be very disciplined and you have to start implementing a short term trading strategy.

A proven fact is that retail traders who donot use a trading strategy often just throw their funds away and lose it all in the end.

Here is how to avoid this and how to set up a profitable trading strategy.

So how do we go from here?

Basic Trading Rules

To start winning trades and be profitable in the end is to use a system and stick to it at all time. This means you should be disciplined and avoid too many risks.

Below some basic rules for being a consequent crypto trader.

Avoid any emotion

See trading as a game where you can win but also lose and I will assure you, every trader has to deal with losses. If you lose a trade, never set up a new trade to cover your loss, it is not a casino!

The trend is your friend

It is very important to see the bigger picture of the market. If the market is bullish (in an uptrend) your strategy should be buy-the-dip, if the market is bearish(in a downtrend) your strategy should be to sell high and buy back lower. Never catch a falling knife!

Know what you are doing

If you want to go short the market, find more info about it and also know the consequences when you are trading this way. In my opinion you should avoid at any time trading with leverage.

Always have a plan

When entering a trade the market can turn against you at any moment. Have a plan and also use targets. It’s very important to use targets otherwise profits will go away.

Track or back test a strategy

If you want to use different strategies, first do some paper trading and do some testing. It’s very important to enter trades by using a system.

Risk only what you can afford to lose

Trading is all about finding setups with low risk / high reward opportunities. To avoid high risk, every trade you make should never be higher than 5 – 10% of your total portfolio.

Always use a stop loss

Like I said before, the market can turn against you at any time, it’s very important to avoid big losses. Therefore any trade you make should have a stop loss

These are the basic rules for being profitable when trading bitcoin or any other cryptocurrency. If you are a trader and are trading frequently in the markets, what is your favorite trading platform?

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5 Easy Steps For Bitcoin Trading For Profit and Beginners

Bitcoin trading can be extremely profitable for professionals or beginners. The market is new, highly fragmented with huge spreads. Arbitrage and margin trading are widely available. Therefore, many people can make money trading bitcoins.

Bitcoin’s history of bubbles and volatility has perhaps done more to bring in new users and investors than any other aspect of the crpytocurrency.

Each bitcoin bubble creates hype that puts Bitcoin’s name in the news. The media attention causes more to become interested, and the price rises until the hype fades.

Each time Bitcoin’s price rises, new investors and speculators want their share of profits. Because Bitcoin is global and easy to send anywhere, trading bitcoin is simple.

Compared to other financial instruments, Bitcoin trading has very little barrier to entry. If you already own bitcoins, you can start trading almost instantly. In many cases, verification isn’t even required in order to trade.

If you are interested in trading Bitcoin then there are many online trading companies offering this product usually as a contract for difference or CFD.

Avatrade offers 20 to 1 leverage and good trading conditions on its Bitcoin CFD trading program.

Why Trade Bitcoin?

Before we show you how to trade Bitcoin, it’s important to understand why Bitcoin trading is both exciting and unique.

Bitcoin Is Global

Bitcoin isn’t fiat currency, meaning its price isn’t directly related to the economy or policies of any single country. Throughout its history, Bitcoin’s price has reacted to a wide range of events, from China’s devaluation of the Yuan to Greek capital controls.

General economic uncertainty and panic has driven some of Bitcoin’s past price increases. Some claim, for example, that Cyprus’s capital controls brought attention to Bitcoin and caused the price to rise during the 2013 bubble.

Bitcoin Trades 24/7

Unlike stock markets, there are no official Bitcoin exchanges. Instead, there are hundreds of exchanges around the world that operate 24/7. Because there is no official Bitcoin exchange, there is also no official Bitcoin price. This can create arbitrage opportunities, but most of the time exchanges stay within the same general price range.

Bitcoin is Volatile

Bitcoin is known for its rapid and frequent price movements. Looking at this daily chart from the CoinDesk BPI, it’s easy to spot multiple days with swings of 5% or more:

Bitcoin’s volatility creates exciting opportunities for traders who can reap quick benefits at anytime.

Find an Exchange

As mentioned earlier, there is no official Bitcoin exchange. Users have many choices and should consider the following factors when deciding on an exchange:

Regulation & Trust – Is the exchange trustworthy? Could the exchange run away with customer funds?

Location – If you must deposit fiat currency, and exchange that accepts payments from your country is required.

Fees — What percent of each trade is charged?

Liquidity – Large traders will need a Bitcoin exchange with high liquidity and good market depth.

Based on the factors above, the following exchanges dominate the Bitcoin exchange market:

Bitfinex — Bitfinex is the world’s #1 Bitcoin exchange in terms of USD trading volume, with about 25,000 BTC traded per day. Customers can trade with no verification if cryptocurrency is used as the deposit method.

Bitstamp — Bitstamp was founded in 2011 making it one of Bitcoin’s oldest exchanges. It’s currently the world’s second largest exchange based on USD volume, with a little under 10,000 BTC traded per day.

OKCoin — Bitcoin exchange based in China but trades in USD.

Coinbase —

Coinbase — Coinbase Exchange was the first regulated Bitcoin exchange in the United States. With about 8,000 BTC traded daily, it’s the world’s 4 th largest exchange based on USD volume.

Kraken — Kraken is the #1 exchange in terms of EUR trading volume at

6,000 BTC per day. It’s currently a top-15 exchange in terms of USD volume.

Bitcoin Trading in China

Global Bitcoin trading data shows that a very large percent of the global price trading volume comes from China. It’s important to understand that the Chinese exchanges lead the market, while the exchanges above simply follow China’s lead.

The main reason China dominates Bitcoin trading is because financial regulations in China are less strict than in other countries. Therefor, Chinese exchanges can offer leverage, lending, and futures options that exchanges in other countries can’t. Additionally, Chinese exchanges charge no fees so bots are free to trade back and forth to create volume.

If you’d like to learn more about Bitcoin trading in China, this video from Bitmain’s Jihan Wu provides additional insight.

How to Trade Bitcoin

Kraken will be used as an example for this guide. The process and basic principles remain the same across all exchanges.

First, create an account on Kraken by clicking the black sign up box in the right corner:

You’ll have to confirm your account via email. Once your account is confirmed and you’ve logged in, you must verify your personal information. All Bitcoin exchanges require varying levels of verification as required by AML and KYC laws. Below you can find the first three verification levels:

Once your account is verified, head over to the “funding” tab. You should see something similar to the screenshot below. Select your funding method from the left side:

Kraken offers many deposit methods, which are listed here:

EUR SEPA Deposit (Free) — EEA countries only

EUR Bank Wire Deposit (€5) — EEA countries only

USD Bank Wire Deposit (Free until 3/1/2016, then $5 USD) — US only

USD SEPA and SWIFT Deposit (0.19%, $20 minimum)

GBP SEPA and SWIFT Deposit (0.19%, £10 minimum)

JPY Bank deposit (Free, ¥5,000 deposit minimum) — Japan only

CAD Interac Deposit (Free until 3/1/2016, then 1%, $10 CAD fee minimum, $5,000 CAD deposit maximum)

CAD EFT Deposit (Free until 3/1/2016, then 1%, $10 CAD fee minimum, $50 CAD fee maximum, $10,000 CAD deposit maximum)

Deposits made using the traditional banking system will take anywhere from one to three days. Bitcoin deposits require six confirmations, which is about one hour.

Now, navigate to the “Trade” tab. Using the black bar at the top of the page, you can switch trading pairs. In this example we’ll use XBT/USD. We want to buy bitcoins, so let’s put in an order. Navigate to the “New Order” tab.

Let’s say I’ve deposited $300 into my account with a USD bank wire. In the example below, I’ve submitted an order to buy 0.5 bitcoins (XBT) at a price of $370 per bitcoin.

Check the black bar at the top, and you’ll notice that the last trade price was $383.17.

Why submit an order to buy at $370 per bitcoin (XBT) and not $383.17? One may submit an order lower than the current price if one expects the price of Bitcoin to fall. In this case, since my order is lower than other offers in the orderbook, I won’t receive my order for 0.5 bitcoin immediately. Placing an order at a specified price is called a _limit order._ Before placing an order, be sure to check the orderbook for your trading pair.

In the example orderbook below, you can see that the highest buy offer is for $382.5 per bitcoin, while the lowest sell order is at $384.07 per bitcoin.

Using the order form there’s also an option for “Market”.

A market order in this case would submit a buy order for XBT at the price of the lowest available sell order. Using the orderbook above, a market order for 0.5 XBT would purchase 0.5 XBT at $384.07 per XBT. If selling bitcoins, a market order would sell bitcoins for the highest available price based on the current buy orderbook—in this case $382.5.

Trading Risks

Bitcoin trading is exciting because of Bitcoin’s price movements, global nature, and 24/7 trading. It’s important, however, to understand the many risks that come with trading Bitcoin.

Leaving Money on an Exchange

Perhaps one of the most famous events in Bitcoin’s history is the collapse of Mt. Gox. In Bitcoin’s early days, Gox was the largest Bitcoin exchange and the easiest way to buy bitcoins. Customers from all over the world were happy to wire money to Mt. Gox’s Japanese bank account just to get their hands on some bitcoins.

Many users forgot one of the most important features of Bitcoin—controlling your own money—and left more than 800,000 bitcoins in Gox accounts. In February 2014, Gox halted withdrawals and customers were unable to withdrawal their funds. The company’s CEO claimed that the majority of bitcoins were lost due to a bug in the Bitcoin software. Customers still have not received any of their funds from Gox accounts.

Gox’s catastrophic collapse highlights the risk that any trader takes by leaving money on an exchange. Using a regulated Bitcoin exchange like Kraken can decrease your risk.

Your Capital is at Risk

Remember that as with any type of trading, your capital is at risk. New traders should start trading with small amounts or trade on paper to practice. Beginners should also learn Bitcoin trading strategies and understand market signals.

Bitcoin Trading Tools & Resources

Cryptowatch & Bitcoin Wisdom – Live price charts of all major Bitcoin exchanges.

Bitcoin Charts – More price charts to help you understand Bitcoin’s price history.

bitcoinmarkets – A Bitcoin trading sub-reddit. New users can ask questions and receive guidance on trading techniques and strategy.

TradingView – Trading community and a great resource for trading charts and ideas.

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