Trading with Bitcoin
Following the development of civilization, trading is the sole factor in the creation of currency, in order to facilitate the process. Without it, trading means exchanging one good for another, but through the use of currency, people can trade currency for goods and vice-versa.
Today trading takes place through the information technology widely available through the world, as well as physically buying and selling in exchange for fiat currency.
Here you can find information about modern trading and all necessary information to get you up on your feet if you’re considering to start trading.
Beyond the general information about trading, we have a part on the bottom that’s focused on the trading with Bitcoin. Although useful, a lot of the information in the in-depth guide is very valuable for new and experienced traders as well.
The crypto currency market is booming and becomes more and more complex. At the same time, more and more people are becoming cryptotraders. While machine learning methods can help a great deal not only in decision making but also in market monitoring, most people nowadays rely on nothing but their gut.
Signals.Network (SGN) is an abbreviation of Signals network, which is nothing but a platform for data science. This exclusive platform assists the users in various trading-related aspects such as the creation, discovery, and monetization of cryptocurrencies. These aspects usually involve enhanced computing power, crowd knowledge, and machine learning. Visit Website
General introduction into trading, explaining the necessity, as well as the modern ways that it’s being done today. You can learn more about the different trading styles, the business of trading in general. Overall, it’s a good source of information if you want to build a foundation of trading knowledge. Read more
Today trading through an automated fulfillment of ordered, which are instructions for the exchange on what to do. By setting up your orders correctly, you can save yourself from quick devaluations of the good that you’re trading with. Read more
Constantly evolving, technology is the fundamental reason anything changes these days. This chapter looks upon the modern trade tech, as well as providing a brief history of how contemporary trading has evolved over the course of the last 30 years. Read more
In order to be successful with trading you need to have a plan. Trading isn’t lucky guessing or gambling, although some people treat it this way. In this chapter you can learn more about what trading plans are and how to develop them yourself. Read more
After creating a plan for trading, it is essential to test it in order to establish a baseline expectation about the return on investment. Testing your trade plans enables you to form realistic, or as close to real expectations about the outcome of your trade activities. Read more
While trading is the universal language of commodity exchange between people, every market where people trade has a different culture. Trading with Bitcoin is different than trading with other commodities. Here you can learn specific information about Bitcoin Trading. Read more
Once you’ve considered whether Bitcoin trading is for you and you’ve decided that it really is, then the next step is to learn more about the Bitcoin exchanges that are available for you. Following this link will lead you to a list of reviews that we did on the various exchanges around the internet and will serve as a great starting point for your bitcoin trading activities. Read more
The journey doesn’t stop here. Trading is but one part of the entire Bitcoin ecosystem. An important one, of course, but understanding the technology, its potential and the implications that arise from its use are important as well. So if you haven’t already explored other parts of the guide, we suggest having a look at them, or if you already have you can assist us in improving this guide by partaking in the community survey that we’ve prepared for you. Read more
Bitcoin Trading Sites, Platforms & Exchanges
This pages will show you different Bitcoin trading platforms you can use.
The availability of each exchange will differ based on your citizenship.
We have listed the exchanges below from highest to lowest daily volume based on 2017 data.
Despite a hack in which users lost 33% of their funds on the exchange, Bitfinex remains a popular option.
Its liquidity is only topped by Poloniex, which makes Bitfinex the largest Bitcoin exchange in terms of USD trading volume.
Here’s what’s funny:
Poloniex has the largest Bitcoin trading volume, but its markets are not even denominated in USD or any other major currency.
Its DASH and Ether markets make up about 20% of Bitcoin’s daily trading volume.
GDAX holds about a 4% share of total BTC trading volume. 80% of its share comes from its BTC/USD exchange, with the rest coming via its ETH/BTC exchange.
Gemini accounts for just about 1% of total Bitcoin trading volume. It’s still rather new, so with time it may gain market share.
It has some very unique features, like instant-Bitcoin and instant-wire deposits.
Between its EUR/BTC and USD/BTC markets, Kraken has about a 7% share of the total Bitcoin trading market.
About 50% of Kraken’s market share comes from its EUR/BTC exchange, 30% from its Ether/BTC exchange, and the last 20% from its USD/BTC exchange.
Bitstamp’s BTC/USD exchange accounts for about 2.5% of global Bitcoin trading volume.
Its BTC/EUR exchange tacks on anohter 0.5% of global volume, giving Bitstamp a ~3% share of global Bitcoin trading volume.
Bitcoin trading is exciting because of Bitcoin’s price movements, global nature, and 24/7 trading. It’s important, however, to understand the many risks that come with trading Bitcoin.
Leaving Money on an Exchange
Perhaps one of the most famous events in Bitcoin’s history is the collapse of Mt. Gox. In Bitcoin’s early days, Gox was the largest Bitcoin exchange and the easiest way to buy bitcoins. Customers from all over the world were happy to wire money to Mt. Gox’s Japanese bank account just to get their hands on some bitcoins.
Many users forgot one of the most important features of Bitcoin—controlling your own money—and left more than 800,000 bitcoins in Gox accounts. In February 2014, Gox halted withdrawals and customers were unable to withdrawal their funds. The company’s CEO claimed that the majority of bitcoins were lost due to a bug in the Bitcoin software. Customers still have not received any of their funds from Gox accounts.
Gox’s catastrophic collapse highlights the risk that any trader takes by leaving money on an exchange. Using a regulated Bitcoin exchange like Kraken can decrease your risk.
Your Capital is at Risk
Remember that as with any type of trading, your capital is at risk. New traders should start trading with small amounts or trade on paper to practice. Beginners should also learn Bitcoin trading strategies and understand market signals.
Bitcoin Trading Tools & Resources
Bitcoin Charts – More price charts to help you understand Bitcoin’s price history.
bitcoinmarkets – A Bitcoin trading sub-reddit. New users can ask questions and receive guidance on trading techniques and strategy.
TradingView – Trading community and a great resource for trading charts and ideas.
Additional Bitcoin Resources
There are plenty of resources online where you can learn more about bitcoin and its unique properties. Here are some of the major websites that can help you speed up the learning process.
Weusecoins.com Provides simple instructions for setting up your first bitcoin wallet and purchasing bitcoins.
The Bitcoin Wiki. Plenty of articles on any bitcoin related topic that range from securing your wallet, dealing with scams, mining bitcoins, to a list of online and offline businesses that accept the new currency.
Bitcointalk.org The main bitcoin forum. Use it only after you’ve got the basics down by following the previous two links. Use this resource to ask questions about more advanced topics.
Bitcoincharts is the most popular website for following the current bitcoin price. The site provides a rundown of all major btc exchanges by volume. You can also arrange the markets to only display the Euro or the Japanese Yen versus bitcoin on the different exchanges. Like the name says, the website also offers charts with several popular technical indicators. The choice of timeframes ranges from 1 minute all the way to the Weekly TF. Plus, you get to see the current market depth at the different exchanges.
Bitcoinity.org Another popular charting resource, very similar to Bitcoincharts. Recently switched to mBTC pricing, 1 mBTC = 0.001 BTC. They still offer the option to display prices in BTC instead.
CoinDesk.com Coindesk provides daily news on bitcoin and other cryptocurrencies.
DC Magnates focuses on news about different digital currencies including bitcoin. It was launched by the same team from Forex Magnates, a popular forex industry news website that many of our forex readers are probably familiar with.