The operations on cryptocurrency are identical to any other trading activities. Making a profit on bitcoin (BTC) will not be a problem for those, who know the basics of Forex trading in the stock market, national currencies, and securities.
The main rule is to buy cheaper and to sell beneficially. Those people, who have already learned the basics can proceed to actions. The FXTM forex regulated broker will help you to study, trade and invest professionally.
At the beginning of the way, we recommend you to learn the main components of the BTC exchange:
- charts;
- sell/orders;
- history of transactions;
- trading volumes.
To understand the basics of the BTC exchange, it is worth considering all of these elements in detail.
Rate Charts
This chart is the history of the BTC exchange rate to another currency or fiat money. Most often, the chart is presented in the form of Japanese candlesticks that clearly demonstrates the development of the spread over time. Spread is a difference between the best ask rates and the bids.
These charts are considered the most informative to trade. This is especially true for technical analysis. A single stick reflects the rate movement over a certain time. The info of the same pair can be presented in various time axes, for example, an hourly table or a 15-minute chart. One stick shows the values that were relevant for this period.
The ability to read candlesticks makes operations on BTC easier.
Buy and Sell Orders
The purchase/sale orders create a list or table that indicates requests from users to purchase or sell one unit for another. There is always a gap displaying the wish to trade BTC at a certain rate. If there is a counteroffer to sell or buy, then a transaction is made, and the current price of the traded pair is adjusted accordingly. Based on this data, you can make a final decision.
History of Transactions
This indicator allows you to evaluate the total trading volume on the market. It helps to assess the interest of the majority of the participants in a given price for a certain pair.
Trading Volume
This volume is represented as the total number of bitcoins, which passed from hand to hand based on executed orders for a certain period. Brokers from Nigeria, USA, Philippines or South Africa have the same starting conditions. So, it is very important for analysis to check this volume because it can be a strong signal to start acting.
Differences Between Bitcoin and Traditional Exchange Markets
Unlike the stocks, the volatility on the BTC market is hundreds times bigger. Volatility shows the price movement for a certain period. For example, in 2013, the BTC rate grew by more than 5500%. Such fluctuations cannot be detected on the securities or real currencies.
Therefore, it is advisable to familiarize yourself with the following tips:
- Greed is the main enemy of any broker. You should never wait for additional growth or fall. It is better to play safe and stop on time or enter existing conditions without waiting for the ideal option.
- Patience is a guarantee of profit. This applies to both tracking open positions and waiting to receive more convincing entry signals.
- It is extremely important to always control the BTC charts. They are the main source of information for the deal.
- Volume and profit are key factors that reflect the mood of other players.
All these tips above are universal and suitable for everyone without limitations. So, if you want to dive into the world of finance, be sure to work with a reliable broker. In this regard, ForexTime is a perfect option.
