Bitcoin trading is a challenging endeavor involving leveraging a lot of cognitive undertaking to get anywhere near perfecting your stamina. Chances of reaping big rewards from trading are immensely high with the current market conditions so is the chances of losing your entire portfolio in a matter of minutes.
However, only a few people who painfully master the craft of trading cryptocurrency can make the millions that come with the lucrative trading. In this article, we shall review the five most important resources all bitcoin traders need to get their hands on to perfect their trading skills.
Before we go into our five-point agenda let us comprehend this short quote from Bitcoin developer and Blockstream co-founder Pieter Wuille.
“Bitcoin enables certain uses that are very unique. I think it offers possibilities that no other currency allows. For example the ability to spend a coin that only occurs when two separate parties agree to spend the coin; with a third party that couldn’t run away with the coin itself.” – Pieter Wuille
Basic Technical Analysis
Trading cryptocurrency is comparable to trading forex. Both of the commodities are traded in pairs. To learn more about forex trading we recommend you visit “BabyPips” to access great introductions to forex trading covering all the basics.
For those interested in patterns, there are great resources available too. One of such resources is a website- “the pattern site”. This website offers free helpful content when researching and offers really amazing charts. The site is own by popular author and trader Thomas Bulkowski.
Advanced Technical Analysis Concepts
Basic technical analysis alone cannot promise your consistent reliable profits from bitcoin trading. Take the extra steps and learn advanced technical analysis concepts. some of such concepts are Wyckoff methods, order flow, and volume spread analysis.
Below we link to the sites where you can absorb all these vital knowledge.
- Wyckoff method and trading ranging markets
- John Bollinger (The Bollinger Bands)
- Volume spread analysis
This ist couldn’t be complete without mentioning trading tools. These are non-human assistance that is very Vital while trading or learning how to trade. Trading tools help to view live charts from some amazing free charting websites such as “tradingview”.
Another amazing website for this job is “Bitcoinwisedom”. This website gives you access to the order book in real time keeping you afloat of the ongoing market conditions.
To get the best statistics such as the fraction of long versus short margin trading, “BFXdata” has some really very important stats for you. So do you still want to lag behind? Grab these amazing packages of free trading helps and put an end to your losing spree.
Another thing every new trader must have is the skill to research and choose good altcoins. For starters let’s begin by reading this amazing how to choose altcoins articles on medium.
To ascertain the future of an altcoin user can evaluate developer activities, social media presence, and others. The best site for this is coingecko.com. To research coins in a more specific context to avoid time wastage visit iconmi.net.
Trading Bots and Quant Tools
How about we get our hands a little dirtier, huh? Do you want to automate your trading experience? Trading bots are the things you are looking for. To become effective using these tools we must get a little deeper into coding yeah, programming.
Moreover, to do this we recommend an averagely easy to master language such as python. To get some positive energy on getting started with python read this medium article, Python from Zero to Hero.
The trading view has a customized coding language it developed enabling traders to build the own indicators. Another great python script was written by James Hogan that allows you to download historical data from Coinmarketcap. The data is useful while trading altcoins or Bitcoin prices for tax purposes. Another great API wrapper is out there allowing access to the Bittrex API using Python.
As Ralph Waldo Emerson Once said; If we encounter a man of rare intellect, we should ask him what books he reads. Books are still the best source of wisdom or rare intellect for that matter. The best books on trading bots can be found in this link.
Security and Mindset Training
Most importantly remaining profitable while trading Bitcoin require you to keep your bitcoin balance safe in the first place. To achieve this, we will discuss two important aspects. Securing your process away from hackers and training your mind not to blow out your entire trading capital in one bet.
Starting with the security, there are a lot of hungry hackers prying the internet trying to get their hands into any coins hanging without proper security. The rule of thumb is to keep your coins in cold storage secure in some physical barrier such as a safe.
There are good hardware wallets out there that can do this job for you. To get heads up on securing your tokens, there are various articles available out there in the market.
You can become a security threat for your own Bitcoin deposits. Once you haven’t developed the patience of knowing when to trade and when to stop, you can squander all your capital in the smallest possible time.
To avoid this embarrassment we recommend you take some time to master logical patience for the sake of keeping your bitcoin trading experience amazing. Bitcoin trading is a really profitable venture if done correctly. However, the chances that you will incur huge amount in losses before you gain anything is big. Sometimes you will not even break even at all.
Use this article as a guide to get started on your way to profitable bitcoin trading experience. If there are any great bitcoin trading resources that we forgot to mention in this article write it up in the comment section below.
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