When it comes to BTC trading, it makes sense to compare the process with multiple markets like Forex, traditional exchanges, and Altcoin assets like EOS or Ethereum.
Unlike Forex trading or selling stocks, Bitcoin could be a more volatile currency than any traditional currency, which provides ideal conditions for major spikes every day. And that, in effect, paves the way for multiple opportunities for day trading and scalping.
Take a look at these rates of Bitcoin price volatility over the months of July to November 2019. The price of the BTC fell from a high of 14 000 USD to nearly 8000 USD, just below 50 per cent.
No brokers needed
While trading crypto, you have the option to use a broker like eToro or RoboForex if you want.
But the good thing about cryptocurrencies is that you don’t have to use the brokers as you would with conventional stocks or Forex.
That significantly reduces fees and transaction costs. If you are directly entering the market through a crypto exchange, such as Kraken, Bitfinex or HitBTC, you are not expected to have a minimum amount to start trading.
All you need in order to verify your identity is the Internet, some savings and several documents.
Be conscious they’re all under hacker’s watchful eye. Although the biggest trading venues are constantly taking action to improve their security, some of them have experienced thieves nabbing millions.
Just to provide one example of that. In 2019, hackers stole more than $30 million from the South Korean website Bithumb. Hot wallets have been impacted by the hack, or simply online user accounts with the exchange.
Keep in mind that it is easier to store cold storages such as hard drives or paper wallets where you keep your Bitcoin away from the Internet.
No solid regulation
In several countries where legislation is still unclear about the essence of blockchains and cryptocurrencies, bitcoin isn’t easy to regulate.
In China, for example, cryptocurrency exchanges are banned, which means you can not tax the revenue from your trading activity.
For instance, crypto is taxed as an asset in Israel. So the night is young and there are details that you should be researching for every country.
Bitcoin trading software
Once you gain some experience in trading, you can progress to the next level, which is automated trade.
This choice is best suited for investors who already know what they do. You can execute smart orders with trading software like smartcryptobot, set your profit goals and gain either on selling or purchasing your assets
Crypto bots can do all of this for you, but it takes some practice and the ability to quantify losses and gains to make the gains higher than losses–what they call a risk / reward ratio.
No software will guarantee income for you; it simply simplifies the trading processes and saves time.
Smart Crypto Bot is a robust market-based automated crypto bot. It is a graphical representation of the style and parameters of your trading which makes it much easier to use. If you are interested in trading Bitcoin or any other available crypto coins on the market, you are likely to be more successful by using SmartCryptoBot.