How To Trading with Bitcoin

What is Bitcoin Trading?
Bitcoin trading is how you can predict the price movement of a cryptocurrency. Although it traditionally buys Bitcoin through an exchange whose price is expected to rise over time, cryptocurrency traders use derivatives to predict rising and falling prices.

With IG, you can place on the price of Bitcoin with financial derivatives like CFD. This product will enable you to take advantage of price movements in any direction without owning the underlying coins – meaning you don’t have to take responsibility for the security of any bitcoin token.

Steps for bitcoin trading

  • Know what bitcoin is worth
  • Choose bitcoin trading style and strategy
  • Choose How You Want to Get Bitcoin Exposure
  • decide whether to go long or short
  • Set your stops and limits
  • Open and monitor your business
  • Close your position to make a profit or cut a loss

Know what bitcoin is worth

To enter a rising opportunity or short the latest bubble, you must first understand the factors affecting the price of bitcoin:

The current bitcoin supply is limited to 21 million, which is expected to end by 2140. Limited supply means that the price of bitcoin could rise if demand picks up over the next few years.
Bad press. Any breaking news related to the security, value and longevity of bitcoin will have a negative impact on the coin’s overall market cap.
aggregation. The public profile of bitcoin depends on the new payment system and its integration into the banking infrastructure. If this is done successfully, demand may increase which will have a positive effect on the price of bitcoin.
main function. Regulation changes, security breaches and macroeconomic bitcoin announcements could all affect the price. Any agreement between users to speed up the network can also rely on the growth of bitcoin.

Trade Bitcoin Derivatives
Trading bitcoin derivatives with us means that instead of keeping Bitcoin straight, you will estimate its price with CFD. As a result, you will be able to stay in positions when the price of Bitcoin falls from ‘long’ or ‘short’. Here are some other benefits of trading Bitcoin derivatives with us:

  • Leverage and Margin: CFDs are always dealt with leverage, which means you only need to be known as deposit-margin to get full market exposure.
  • Deep liquidity: Thanks to our large customer base, our bitcoin market is very liquid. This means your demand is more likely to be met at your expected price – even if you deal in a larger size.
  • Hedging: Shorting with derivatives can be an effective way to hedge your portfolio and protect against market downturn.=

Buying bitcoin through an exchange

Buying bitcoins through an exchange is primarily for those who use the policy of buying and holding bitcoins. This is because buying through an exchange means that you own bitcoin directly – in the hope that its value will increase.

That said, there are some problems with buying bitcoin through an exchange:

  • Bitcoin exchanges often do not have the necessary infrastructure to respond quickly to support proper regulation and requests.
  • The matching engines and servers on the Bitcoin exchange are often unreliable, which can lead to market suspensions or reduced implementation accuracy.
  • The matching engines and servers on the Bitcoin exchange are often unreliable, which can lead to market suspensions or reduced implementation accuracy.

Set your stops and limits

Stops and limits are important risk management tools – and when you trade with us, you have several options to choose from

Normal stops will close your position at a specified level, but they can be responsible for avoidance if market prices change rapidly.
Trailing stops follow favorable market movements to lock in profits while controlling your market risk. However, they can also be subject to slipping
Regardless of any slip, the guaranteed stop will close your position at a specified level. Guaranteed Stops are free to set up, but you will be charged if your Guaranteed Stop is triggered
All these tools are available to choose from in the deal ticket on our trading platform.

Close your position to make a profit or cut a loss

When you want to make a profit, or minimize a loss that has made you uncomfortable. Your profit will be credited directly to your trading account, while your loss will be deducted from your account balance.

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