STEEM CRYPTO CHALLENGE #5: BECOMING A SUCCESSFUL BITCOIN TRADER IN THE MIDST OF UNCERTAINTIES

Dear @steemcurator01 and @steemitblog,
It's great to be back.

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However, I'll be writing about the things needed to become"successful" in Bitcoin trading.

It’s a bit more complicated if you’re just beginning to trade Bitcoin. But, with a little hard work and determination, you will be an expert in no time.

Bitcoin trading dependent on how you can speculate on movements in the cryptocurrency’s price. While this has traditionally involved buying bitcoin through an exchange, hoping that its price will rise in time, cryptocurrency traders are increasingly using derivatives to speculate on both rising and falling prices – in order to make the most of bitcoin’s volatility.

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Below are some tips that will help you become more successful in Bitcoin trading.

TIPS TO BECOME MORE SUCCESSFUL IN BTC TRADING

1. You should Have Enough Savings Before Trading:
Before you even start trading, the amount of savings you have should be enough such that you don’t use all of your savings to trade Bitcoin. That’s the number one rule to become a successful Bitcoin trader. The price behavior of Bitcoin can be very volatile. Most of the time, your decisions on Bitcoin trades will only come from speculations, which is high risk. So it is better not to invest all you have.

Because of this, you must only trade an amount that you’ll be comfortable losing. By making it a rule to trade only what you can lose, you won’t be very tense and worried when you’re trading Bitcoin since you can shoulder the losses. Taking away the thought of losing all of your savings will make you a better trader by preventing you from “panic selling.”

2. Set A Limit For Losses and Profit
As mentioned, when trading Bitcoin, prices can quickly go very high or very low. To prevent yourself from making impulse decisions when high volatility occurs, it’s very important for you to determine your limits. A tip is that you have to determine and set a price that you’re willing to cut loss or take profit before the trade.

Having a cut loss and a profit target price will help keep you level-headed in times of pressure during a trade. For instance, there There was a time I thought prices would still go up because of the rising price at that time, so I refused to sell. But it happened that it was the opposite. The price started declining and I was kinda stranded. Having a cut loss target will prevent your emotions from getting in the way.

3. Learn Technical Analysis
Amateurs in trading only consider market sentiment and speculation when trading. If you want to become a successful trader, you must also learn to look at the charts and use technical analysis to strategize your trades.

Technical analysis is the skill to use patterns and studying volume charts to make calculated decisions regarding your trade. At first, technical analysis may seem very intimidating for a newbie. But, if you have patience and get the hang of it, you’ll find that it ‘ll be very useful.
There are some basic terms and techniques you can use when you do technical analysis such as candlestick and order book.

Bitcoin traders are aware that candlesticks literally look like candlesticks on the charts. These rectangles and lines resemble the range of prices during the day.

One candlestick for the day quickly shows you the opening, closing, highest, and lowest price. Together in a chart, you can see the movement of prices in any range you pick.

Then, An order book is a list of volume and prices that traders are willing to sell or buy Bitcoin. For instance, the “asks” will show you the volume and prices traders are willing to sell. On the other hand, the “bids” will show you the prices and volumes that traders are willing to buy. Basing on the prices and volume, you can make a calculated decision on your trade.

These two charts and tables are the most commonly used in technical analysis. All of these will aid you in making your decisions when you start trading Bitcoin

Set your stops and limits:
Stops and limits are crucial risk management tools. There are several of them you could choose from. For instance;

Normal stops will close out your position at a set level, but they could be liable to slippage if the underlying market price changes quickly

Trailing stops follow favourable market movements to lock in profits, while capping your downside risk. However, they too can be subject to slippage

Guaranteed stops will close out your position at a set level, regardless of any slippage. Guaranteed stops are free to set, but you’ll be charged a fee if your guaranteed stop is triggered.

4. Be updated
Sometimes, the price of Bitcoin is affected by news and trends concerning Bitcoin. Hence, it is advised that you read news and stay updated all the time.

5. Decide whether to go long or short
Trading financial derivatives makes it possible to go both long or short, depending on the current market sentiment. Going long means that you expect bitcoin’s price to rise, and going short means that you expect the price to fall. Don't just operate without the consciousness that prices would fall or rise. Sometimes, our speculations work.

But to do this, you must learn what moves Bitcoin's price. For instance, some of the factors that have an impact on Bitcoin's price are:
¶ Bitcoin supply
¶ Bad press: Any breaking news which concerns Bitcoin security, value and longevity.
¶ Integration
¶ Key events like regulation changes; etc.

6. Don't dwell in your mistakes
To become a successful Bitcoin trader, you must not ruminate on a mistake. Instead, take a step back and evaluate what happened. Try to figure out what you did wrong. Then, use and learn from that situation and experience. Take your learnings and use them on your next trade.

There would be times when there are no wins, but if there are losses, you must be strong enough to rise above it and go on to the next trade. Don’t let your mistakes discourage you from becoming as successful as you've always dreamed.
Now this is me wishing you all the best. See you at the top!

It's always nice taking part in the challenge. Thank you for having me. I still remain Blessing Daniels (Nigeria)

The price of Bitcoin will be 13,943.15 USD