What is Bitcoin? Launched in 2009 by the mysterious developer Satoshi Nakamoto, Bitcoin (BTC) became the world’s first and largest cryptocurrency. An alternative to central bank-governed fiat money, the decentralized digital currency functions on a peer-to-peer controlled network using revolutionary blockchain technology.
How do I use Bitcoin?
Anyone can invest in and buy Bitcoin. The first step is to create an account with a licensed and trusted cryptocurrency exchange, such as EQUOS. Once you have set up your account, verified your identify, and added some funds, you can begin buying and trading BTC.
Day trading involves placing multiple trades throughout the day and speculating on short-term movements. Day traders buy and sell BTC and close their trades BTC on the same day. They seek to profit from emerging patterns.
Scalping involves placing trades frequently on very minor price movements to exploit any price gaps in the market for extremely short periods of time. Scalpers believe that obtaining small profits frequently limits risk and creates advantage.
Swing trading involves spotting a trend as it occurs and holding that position until the trend runs its course or is believed to change. Swing traders seek to profit from the momentum of the market.
In automated trading, investors opt for a less active role in which trades are executed in accordance with pre-stipulated criteria, or a pre-programmed trading strategy. This automated setup responds to market conditions on a traders’ behalf.
What types of orders can I make?
A trader will enter and exit their trade by placing orders.
A market order is a buy or sell order. On an exchange, you will be matched with sellers and buyers to meet your order, which is fulfilled at current market price.
A limit order is an order with an instruction set by the trader to either buy or sell above or below the current market price to yield a more advantageous return for the trader. However, if the price is not reached, the trade does not go forward.
A stop loss order is a buy or sell order set to a certain price. BTC can be bought or sold at that set price to minimize loss if the market moves unfavorably with your trade. A stop loss order remains active until the position is closed or the order is cancelled.
Technical and fundamental analysis
Technical analysis involves the study of past price movements and predictions made using market statistics to evaluate current and future trading conditions and trends. Fundamental analysis involves looking at external factors, such as political, social and economic influences, to establish the value of a stock or asset.
Engaging in chart analysis is helpful for traders in identifying useful patterns and choosing a strategy.
It is recommended to transfer BTC to a qualified custodian for secure storage. BTC may also be purchased into a wallet and held here for ease of accessibility and short term use.
Cautionary note: It is important to assess your own risk-tolerance and to inform yourself about the Bitcoin market before trading BTC.
Ian Fleetham, Head of Trading at EQONEX, shows how to trade Perpetuals on the EQONEX Exchange. Use EQO-D, the first EQO airdrop, and cross-collateral to make the most from your trades.
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