Five months into 2020, many have already declared that Bitcoin could be this year’s best-performing asset and that 2020 could be a repeat of 2017 when Bitcoin’s massive rally made many early holders into millionaires. Unlike a few years ago when Bitcoin was just traded among the techno-savvy, now it has attracted the most diverse segments of the population around the world.
Besides holding Bitcoin, leveraged trading, also called margin trading, is favored by retail investors as this is one of the most popular derivatives to generate large profits within a short time. With leverage, traders can open greater positions with smaller capital invested and multiple their profits X times. For instance, with 100x leverage, you can open a 100 BTC short/long position with just 1 BTC in your account. When the price of Bitcoin decrease/increase by 1%, you will earn 1 BTC.
However, when dealing with an asset as volatile as Bitcoin, one should always remain cautious. For this reason, here are 4 tips for Bitcoin traders, especially for beginners, and those who want to have a taste of Bitcoin trading.
- Plan Your Trade, Trade Your Plan
Always make sure you enter a trade with a clear plan. Figure out how much you are willing to risk and when to stop. This could protect you from making impulsive decisions. More often than not, we heard stories of traders getting their positions liquidated due to fear or greed. Stick to your plan, keep calm, and carry on. Always remember that good planning and a clear head can get you a long way in trading.
- Treat Trading Like a Business
If you want to thrive in the market, treat it seriously. Trading is not gambling. You can’t just place a bet and hope for it to go in your favor. Learn to analyze the market, keep yourself abreast of market news and keep practicing. Some platforms have built-in trading simulator for you to practice as much as you like. A good demo account serves as a sandbox for you to improve your skills and get familiar with the fast-changing market. Moreover, don’t hesitate to consult experienced traders or ask for help from your trading platform.
- Take Advantage of Technology
You could utilize different tools and technology to analyze the market or make trading easier. Indicators, drawing tools, and P/L Calculators are available on many platforms. Use them right can help you better understand the market trend.
Another powerful tool is smartphones. Nowadays most mobile trading apps are as full-featured as their desktop counterparts while being far more convenient. Take the Bexplus app as an example, it not only covers the necessary functions such as real-time charts and interest-bearing wallet but is also installed with the real-time notification to ensure users can monitor the market fluctuation 24/7. This could keep you updated while taking your mind off the stress temporarily.
- Always Use a Stop Loss and a Take Profit
Losing hurt a lot. But make sure to use a stop loss to control losses and this could also make your trading less stressful. Once the market price reaches the pre-set triggered price, your positions will be automatically closed and trade with the optimal market price available at that time.
It is also worth mentioning that while the role of stop loss is widely recognized, many people fail to acknowledge the importance of a take profit. Some platforms have adopted the auto-selling in profit function. In Bexplus, the corresponding positions will be automatically closed at the market price when traders’ profit reaches 85% of their net account value( including bonus). Many beginners would be quite confused with this function thinking: “who would want to sell their winning position?” But that’s actually a risk control tool to counter the volatility of the market. Watching your profit continue to increase is certainly exciting and addictive, but always remember while Bitcoin price can increase 10% in a few hours, it can drop as fast.
Like all other Bitcoin derivatives, leveraged trading is risky, but it does generate juicy profits when used right. If you are prepared for leveraged trading, Bexplus is an ideal platform worthy of trying. Headquartered in Hong Kong, Bexplus is trusted by 100K traders. No KYC required, traders can get a demo account with 10 BTC. Bexplus now offers a 100% deposit bonus and the possibility of a 10% off transaction fee.
Follow Bexplus on:
Mobile Trading (Android): https://play.google.com/store/apps/details?id=com.lingxi.bexplus
Mobile Trading (iOS): https://apps.apple.com/us/app/bexplus-profit-from-cryptos/id1442189260