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Journey into the Crypto-Verse: Your Beginner's Guide to Bitcoin Trading on Bitget

Journey into the Crypto-Verse: Your Beginner's Guide to Bitcoin Trading on Bitget

Beginner
2023-05-29 | 5m

This article covers the basics of Bitcoin, explains Bitcoin trading with its strategies and offers step-by-step instructions for getting started on Bitget.

TL;DR

- Bitcoin (BTC) is the first and most well-known cryptocurrency for decades. Its price has experienced many periods of upward movement, indicating potential opportunities for growth and profitability.

- There are various Bitcoin trading strategies based on the trader's preferences, knowledge, time commitment, and risk tolerance.

- Bitget strives for an inclusive product design so that every user can find their own solution to Bitcoin trading from holding, day trading, to automated trading.

- For beginners aiming to succeed in Bitcoin trading, the top tips include prioritizing education, formulating strategic plans, and staying informed about current market trends.

Bitcoin Trading: The Basics

What Is Bitcoin?

Bitcoin (BTC) is the first and most well-known cryptocurrency for decades. It was introduced in 2008 by an anonymous developer under the pseudonym Satoshi Nakamoto. It is decentralized, and the transactions are verified by network nodes through cryptography and recorded in the blockchain.

Bitcoin has experienced significant price fluctuations, but its overall trajectory has been undeniably upward. In 2010,10,000 Bitcoins were worth only two pizzas, and skeptics waiting for the fall of crypto were stunned when Bitcoin hit US$69,000 in 2021.

In recent years, Bitcoin has outperformed major stock indices like the SP 500 and the Dow Jones Industrial Average. While stock markets have shown steady growth, Bitcoin's price appreciation has been far more significant. During the third month of 2023, Bitcoin outperformed 97% of all SP 500 companies. And the history doesn't stop there!

According to Glassnode, the recent 7-day price range of Bitcoin has recently experienced a consolidation phase, narrowing down to one of the tightest ranges witnessed in the past three years. Notably, this level of consolidation is comparable to instances seen in July 2020 and January 2023, both of which resulted in significant market movements. This indicates a possible positive price shift for Bitcoin in the near future.

Journey into the Crypto-Verse: Your Beginner's Guide to Bitcoin Trading on Bitget image 0

Bitcoin price has experienced many periods of upward movement, indicating potential opportunities for growth and profitability.

Source: TradingView

Still curious about Bitcoin? Take a look at our article Answers to The Most Common Bitcoin-related Questions.

How Does Bitcoin Trading Work?

Bitcoin trading simply means buying and selling Bitcoin to profit from its price fluctuations. The process involves two primary forms of trading:

- Spot Trading: When you buy at a low price and then sell Bitcoin at a higher price. This type of trade is settled immediately, once the transaction is confirmed.

- Derivatives Trading: Derivatives trading involves financial contracts that derive their value from the performance of an underlying asset, in this case, Bitcoin. Futures and options are common types of derivatives. Traders can speculate on the future price of Bitcoin without needing to own the actual asset.

Understanding Bitcoin Price Movements

- Supply and Demand: Like any asset, the price of Bitcoin is affected by supply and demand factors. When supply exceeds demand, the price will fall and vice versa.

- Market Sentiment: News, events, and sentiment can significantly impact Bitcoin prices. Positive news often leads to price increases, while negative news can cause a decline.

- Regulation News: As governments worldwide create regulations for cryptocurrencies, this can impact Bitcoin prices, positively or negatively, depending on the nature of the regulation.

- Technological Changes: Improvements, updates, or security breaches in Bitcoin technology or its underlying blockchain can also influence prices.

If you're keen to understand more about the factors influencing Bitcoin's value and price, check out our article Bitcoin 101: Bitcoin Value and Price.

Bitcoin Trading Strategies

Bitcoin is the most traded cryptocurrency in the market. However, Bitcoin trading requires a well-defined strategy. There are various trading strategies based on the trader's preferences, knowledge, time commitment, and risk tolerance.

Journey into the Crypto-Verse: Your Beginner's Guide to Bitcoin Trading on Bitget image 1

Related articles:

What Is Crypto Arbitrage?

Everything You Need to Know About Crypto Short Squeezes

Bitget’s DCA Strategy: A Hands-on Tutorial

Trading Strategy: Dead Cat Bounce

The Ultimate Bear Market Strategy: What You Need To Know About Shorting?

We've covered what Bitcoin trading means, let's learn how to start trading them on Bitget.

How To Start Bitcoin Trading on Bitget

Step 1: Set up your Bitget account

To begin trading Bitcoin, you'll need to set up a Bitget Account. It only takes 2 minutes to create an account on Bitget and receive a $5005 reward!

Step 2: Fund your Bitget account

There are 2 ways to fund your account:

- Buy crypto with fiat currencies

- Deposit crypto into your Bitget wallet on the website or app from another cryptocurrency wallet.

Step 3: Start trading

Now you are all set! Discover a wide variety of Bitcoin products on one of the largest and most recognized cryptocurrency exchanges globally, Bitget.

Check out our Beginner's Guide to learn the fundamental first steps of your Bitget journey!

Exploring All Bitcoin-related Products on Bitget

Founded in 2018, Bitget is one of the world’s leading cryptocurrency exchanges with an extensive user base exceeding 8 million individuals spread across over 100 countries. At the heart of our customer-centric approach lie three fundamental principles: integrity, transparency, and the cultivation of a genuine "win-win" environment, benefiting all parties involved. We strive for an inclusive product design so that every user can find their own solution to Bitcoin trading on Bitget.

Form of Trading

Description

Products

Trading Pairs

Spot Trading

Spot trading is the process of buying and selling cryptocurrencies at real-time prices with the aim of generating a trading profit.

Bitcoin Spot Trading


BTCUSDT


BTCBRL


BTCEUR


BTCGBP


BTCUSDC

Bitcoin Spot Grid Trading


BTCUSDT

Bitcoin Spot Margin Trading


BTCUSDT

Bitcoin Spot Martingale


BTCUSDT

Bitcoin Spot Auto-invest

BTCUSDT

Futures Trading

In addition to spot trading, Bitget also offers futures trading, which enables users to speculate on the future price of Bitcoin. They can either bet on a price increase and open a long position or expect price levels to decline and short the contracts.

Bitcoin Coin-Ⓜ Futures


BTCUSD


BTCUSD0929


BTCUSD0630

Bitcoin USDT-Ⓜ Futures


BTCUSDT

Bitcoin USDC-Ⓜ Futures


BTCPERP

Bitcoin Futures Grid Trading


BTCUSDT

Bitcoin Futures Martingale


BTCUSDT

Top Tips for Beginner's Success in Bitcoin Trading

Bitcoin attracts traders and investors who seek to profit from price swings. However, it is important to acknowledge the inherent risks associated with its volatile nature. Here are some tips to help you approach Bitcoin trading in a more successful way:

- Educate yourself: Take your time to understand how Bitcoin works, the factors that affect its price, and the fundamentals of technical analysis. Familiarize yourself with different trading strategies and stay updated on market news and trends.

Bitget Academy is an online education platform to provide in-depth guides, practical tips, and market updates covering everything from the basics of blockchain technology to advanced trading strategies. As part of the commitment to education and empowerment, Bitget has introduced Bitget Academy's Blockchain4Youth program to offer a free three-module Blockchain Fundamentals Course to everyone.

- Start with a plan: Define your trading goals, risk tolerance, profit targets and preferred trading strategy.

- Use a demo account: If you're new to trading or want to try a new strategy, consider using a demo account on Bitget. This allows you to practice trading with virtual funds without risking your real money.

- Start with small investments: Begin with a small portion of your capital until you gain confidence and experience in Bitcoin trading. This approach helps you manage risk while learning from your trades.

- Set stop-loss orders: To protect yourself from significant losses, set stop-loss orders for each trade. These orders automatically execute a trade when the price reaches a specific level, limiting your potential losses.

And the most important thing is to keep learning and adapting. The cryptocurrency market is fluctuating so always stay updated with the latest news, follow reputable analysts and experts, and be open to adjusting your strategies as needed. Bitget Insights is an exclusive newsfeed located on the Bitget mobile app where influential traders and registered experts can share their financial analyses and views on the market with their followers, creating a resource hub for retail traders or those just beginning to make better, more informed decisions.

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Disclaimer: The opinions expressed in this article are for informational purposes only. This article does not constitute an endorsement of any of the products and services discussed or investment, financial, or trading advice. Qualified professionals should be consulted prior to making financial decisions.