How to Trade in Bitcoin Online and What Strategies to Choose

What Is Bitcoin Trading

You probably know that online Bitcoin trading takes place through crypto exchanges. But there is one more way: financial derivatives such as contracts for difference – CFDs. Thus, traders can purchase or sell Bitcoin and also bet on its price without actually purchasing the coins.

Transactions occur without intermediaries due to the decentralized nature of cryptocurrencies. Trading is flexible and accessible to everyone.

4 Simple Steps to Start Trading

If you want to learn how to trade Bitcoin in India (or anywhere else), pay attention to this helpful guide:

1. Choose how you want to trade. Through exchanges or derivatives?
2. Study the factors influencing the price. It’s important to understand what external events or changes in the market can affect the price of BTC digital coin. This includes supply and demand levels, news and press releases, market capitalization, and other factors.
3. Select your trading strategy. You can opt for short-term trading. Or longer-term investing. Each approach has pros and risks.
4. Make your first trade in crypto. Start with small amounts to reduce potential risks.

Let’s take a closer look at these steps.

Popular Ways to Trade Bitcoin

Trading with CFDs and through cryptocurrency exchanges are two of the most popular methods today.

Bitcoins Trading with CFDs

CFDs let traders speculate on Bitcoin price movements. There is no need to buy the crypto. So this is a more flexible and less risky option. You don’t have to own Bitcoin but simply make a trade for the difference between the purchase and sale price.

Bitcoin Online Trading on an Exchange

Trading on a crypto exchange involves purchasing and selling Bitcoin directly through trading pairs with other currencies. You may choose, for example, ETH, ADA, SOL, XRP, DOGE, MATIC, or any other currency you want. Unlike CFDs, here you become the owner of real coins. This usually attracts people interested in long-term asset holding.

What Drives Bitcoin’s Price?

Research shows that many factors affect Bitcoin prices. And understanding these factors gives traders a major advantage:

1. Supply and demand. The higher the demand for Bitcoins and the lower their supply, the higher the price will be.
2. Press and bad news. News about possible cryptocurrency bans or data leaks can greatly impact the market.
3. Integration. Bitcoin’s integration into the financial system and its adoption by large companies also drive up prices. And this is quite understandable. The more people and organizations use BTC for transactions, the higher its value and stability in the market.
4. Key events. Events like Bitcoin halving (reducing the block reward) influence the price over the long term.

Market capitalization plays a role too. This metric determines how stable the cryptocurrency’s position is.

How to Trade Bitcoin and Make Profit – Use Effective Strategies

The number of strategies Bitcoin traders can use today is truly impressive! And most likely, this is just the beginning. But try to approach the choice carefully. After all, not all approaches work perfectly.

Bitcoin Day Trading

First of all, we want to mention day trading as one of the most popular nowadays. How to trade in Bitcoin using this strategy? It’s as easy as pie! Traders buy and sell Bitcoins during the same trading day, thereby trying to profit from short-term price changes. Yes, indeed, this approach requires time and attention, however, it can be very profitable if the strategy is right.

Bitcoin Swing Trading

What about swing trading? How to trade crypto in this case? Swing traders typically hold positions for several days or weeks, seeking to take advantage of medium-term price movements. This allows for less active market monitoring, making the strategy more suitable for busy individuals.

Bitcoin Scalping

Scalping means making multiple trades in a short period of time in order to generate a small profit from each price movement. This is an interesting practice. But requires excellent reaction and market knowledge.

Bitcoin Hedging Strategy

Hedging helps reduce the risks associated with large price fluctuations. In what way? Traders can access various tools (for example, options or futures) to protect their positions.

Automated Trading

Automated trading is no less attractive today. The software executes trades automatically based on pre-set algorithms. Thus, traders can avoid emotional decisions and the need to work 24/7.

Make Your First Trade in Cryptocurrency

That’s not all we’d like to tell about Bitcoin trading for beginners. The most interesting part is yet to come. Let’s move on to practice. The next step is to make a first trade.

Open a Bitcoin CFD Trading Account

Create an account on the Bitcoin trading company platform. Binany is one of the most trusted today. No need to own Bitcoins to start trading. You will just speculate on their cost. This is a convenient way to get started, especially if you don’t have a crypto wallet yet.

Here is a table with the key points to consider when opening a Bitcoin trading account:

Parameter	Description
Minimum deposit	Depends on the Bitcoin broker. Binany has favorable conditions (you can check them out anytime).
Order types	Limit, market, stop loss, and take profit.
Market opening hours	Bitcoin is traded 24 hours a day, 7 days a week.
Fees and commissions	Transparent trading fees, often in the form of a spread.

Once you have opened an account, it`s time to plan your trades.

Build a Trading Plan

Key points to include in a trading plan:

1. Trading goals. What do you want to get from trading Bitcoin? Quick profits or long-term investments?
2. Capital amount. How much are you willing to invest?
3. Trading strategies. What approaches do you plan to use: day trading, scalping, or longer-term practices?
4. Exit rules. When do you plan to close the trade? What criteria will signal that it is time to exit?

And of course, don’t forget about risk management. How will you limit losses? What level of loss is acceptable?

Do Your Own Research

If you think that knowing the market means simply studying current prices, you are wrong. It requires a deep understanding of factors that influence Bitcoin’s value. Important news about cryptocurrencies or changes in legislation can notably change the price. So, regular monitoring will help you make better-informed decisions.

Manage Your Risk and Place Your Trade

Price can change dramatically at any time. Hence the need to be prepared for any outcome. Set stop losses to limit losses and do not forget about take profit to lock in profits. And always remember: smart risk management is the basis of successful trading.

Monitor and Close Your Position

When a trade is open, be extremely attentive! Constantly monitor changes in the market and analyze how the situation develops. Feel free to close positions if the market doesn’t meet your expectations. Regardless of your confidence in the forecast, the crypto market is full of surprises.

How to Trade Bitcoin – Be Aware of Common Risks

What else about trading Bitcoins for beginners? Risks. They cannot be excluded, even with the numerous appealing aspects present: high volatility, interesting opportunities for quick income, excitement. High profit always comes with high risk. The cryptocurrency market is often unpredictable, therefore, every step should be taken with caution.

Main risks:

1. High volatility. Bitcoin price can change by tens of percent in a matter of hours. This provides opportunities for large profits, but also for huge losses.
2. No regulation. Cryptocurrencies are not regulated in the same way as traditional financial markets. This makes the market more vulnerable to manipulation and fraud.
3. Psychological risks. The emotional component of crypto trading is equally important. Panic, when the market falls, or overconfidence when it grows, are real threats to your profits.
4. Unpredictable news. Cryptocurrency news can affect the price of Bitcoin. And sometimes this news is very unexpected, causing sharp price fluctuations.

How to do Bitcoin trading with maximum success? Is it possible to minimize risks? Of course! Consider some helpful tips:

1. Use stop losses. This helps limit potential losses.
2. Don’t invest more than you can afford to lose.
3. Study the basics, trends, and news.
4. Don’t put all your money on one coin. Try diversification.

So, how to trade on Bitcoin and reap the benefits? Success largely depends on a competent approach to risks. Take trading seriously and consciously, and you will surely achieve your goal!

FAQ

What is Bitcoin?

Bitcoin is the first and most famous cryptocurrency, created in 2009 by Satoshi Nakamoto; a decentralized digital currency independent of central banks and governments.

Why trade Bitcoin?

Bitcoin trading allows making a profit due to its high volatility. This is also a good way to diversify your investment portfolio.

How does Bitcoin trading work?

Bitcoin trading involves predicting its price change on cryptocurrency markets or through financial instruments such as CFDs.

How much will 1 Bitcoin be worth in 2030?

It’s difficult to predict the exact price. However, many experts expect growth in the long term.

How much is $1 Bitcoin in US dollars?

The exchange rate as of January 24, 2025 is $106,961.20, but you should remember that the price changes daily depending on market conditions.

How to start Bitcoin trading for beginners?

Start by learning the basics and creating a trading plan. Also, define a strategy.

Can I trade Bitcoin on the MetaTrader 4 platform?

Yes, you can trade Bitcoin on this platform.

Do I need to use an exchange to trade Bitcoin?

Not necessarily. It is possible to trade using CFDs.

Do I need a Bitcoin wallet when trading with CFDs?

No, you don’t need a Bitcoin wallet to trade CFDs, as you are not purchasing physical Bitcoins, only speculating on their value.

What are the Bitcoin trading hours?

The market operates 24/7 because cryptocurrencies are not tied to specific exchanges or financial institutions.

What is the minimum amount to start trading in Bitcoin?

It depends on the platform you choose. Binany offers excellent conditions.

Should I trade on Bitcoin with CFDs?

Such trading is speculation on price fluctuations without the need to possess the coins. This is advantageous and reduces risk for newcomers but demands consideration of risk and market fluctuations.