If you’ve been trading bitcoin for any length of time, you’ll know that it’s not always easy to make money.
Even if you have a solid strategy and the right tools, there are still plenty of things that can go wrong — like sudden price swings, or worse, an unforeseen event.
But if you’re willing to take your time and learn from your mistakes, you can become a pretty good trader at Coin Culture – Bitcoin Exchange in Australia. Here are 6 tips that will help:
- Know Your Market
The first step is to know as much as possible about Bitcoin and the cryptocurrency market in general. And it’s not just about knowing how much prices have changed recently or which coin has fallen out of favor with traders; it’s also about understanding why prices move at all. That requires research into other factors like news events, regulations, politics and technologies that might affect how people see cryptocurrencies as an investment vehicle or currency alternative.
- Start with a small amount of money
If you don’t have a lot of money, then don’t risk it all on Bitcoin. The cryptocurrency world is still very volatile, and there’s no guarantee that you will make any profit from your investments. It’s better to start small, so that if things go wrong, you won’t lose too much money.
- Do your research
Before you start trading in bitcoins, make sure that you know as much as possible about the cryptocurrency market in general and how it works. You need to understand what kind of risks are involved with investing in Bitcoin and other cryptos, and how they can affect the price of the currency over time.
- Don’t rely on just one exchange
There are several major exchanges where you can buy and sell bitcoins, but this doesn’t mean that they’re all equally reliable or trustworthy. Some exchanges offer better prices than others at certain times, but if you rely on only one exchange for all your trading activities then it could easily run into problems (such as hacking attacks) and leave you without access to your assets for some time.
- Don’t trade bitcoin during the day
Bitcoin is a 24/7 market, meaning you can buy and sell it at any time of the day or night. However, there are some times that are better than others to trade. The price of bitcoin tends to be higher in the morning and lower in the evening, because that’s when most people are working or sleeping.
This isn’t just speculation either: A study by researchers at the University of Texas found that bitcoin prices were correlated with changes in the volume of Google searches for “bitcoin.” The more people were interested in buying bitcoins, the more they searched for them on Google and other search engines.
- Use stop-losses to protect your profits
A stop-loss order is an instruction to sell an asset when its price falls below a certain level. It’s beneficial if you’re planning on holding onto an asset for a long time but want protection against sudden drops in price (as well as other types of losses). For example, let’s say you bought $500 worth of bitcoin last week at $5,000 per coin and then sold it today at $4,500 per coin because you wanted out of your position after seeing a significant drop in price over the past few days.