Do you want to learn how to trade Bitcoin for serious profit and do so safely?
Then let’s show you how to get started with Bitcoin trading!
Whether you’re in Nigeria, Australia, the US, the UK, etc. you can earn money online by buying and selling the world’s top cryptocurrency.
There’s also a wide range of exchanges including Binance, Bittrex, Coinbase, Paxful, and Luno to choose from for convenient trading.
And if you’re more of a stock market trader, we’ll also show you how to trade Bitcoin on Forex without leaving your MT4 or MT5.
Sounds great right?
So here’s a guide for beginners and pro traders looking to successfully trade Bitcoin online.
What is Bitcoin Trading?
Bitcoin trading involves the buy and sell of the most popular cryptocurrency for profit.
In the real world, you buy a product when it’s cheap and sell when its price has surged. You can also buy a property in hopes of earning profit in the short or long run.
In the crypto world, on the other hand, you’ll be buying Bitcoin when it’s less expensive and selling off when its price has spiked.
You may be wondering, how profitable is Bitcoin trading?
Trading Bitcoin is highly profitable due to the volatile nature of the asset and cryptocurrencies as a whole.
However, your ability to make money consistently depends on your level of skill and experience in technical & fundamental analysis.
This means you need to learn the art of trading to earn money.
How much can you make?
You can earn as high as 100%, 200%, or even 500% of your invested capital via Bitcoin trading.
If you bought a fraction of Bitcoin with $500 when its price was $15,000 per coin and sold when Bitcoin’s price surged to $60,000, your profit after the sale would’ve been 300% since Bitcoin spiked by that percentage after you bought it.
It also follows that your initial capital is now $1500.
Over and above that, Bitcoin trading involves the buy and sell of other cryptocurrencies like Ethereum, Litecoin, Tron, Dogecoin, XRP, Binance Coin, etc.
These are alternative coins (altcoins) you can trade to earn more Bitcoin.
Things to Know Before Trading Bitcoin
There are several things you need to know before trading Bitcoin.
Consider them as tips that will enable you trade this digital asset safely and successfully.
To that effect, put the following tips into consideration:
1. Know How to Register and Start Online Bitcoin Trade:
You need to know how to register and start online Bitcoin trade to maneuver the market with ease.
But first, decide if you want to be a trader or merchant.
If you’ll rather trade Bitcoin for cash, more Bitcoin, or other cryptocurrencies, you can register on decentralized exchanges like Binance, Coinbase, Kucoin, FTX, Hotbit, etc.
These platforms have a similar registration process where you need to create an account, set up 2FA using email, enable Google Authenticator, and verify your identity.
On the other hand, peer-to-peer (P2P) exchanges like Paxful and LocalBitcoins are ideal for merchants looking to buy Bitcoin cheap to sell at a higher rate.
This method can also be adopted if you have family and friends who trade Bitcoin. You can help them sell their Bitcoin on these P2P platforms.
Now here are simple steps on you how to setup a trader and merchant account.
a. Creating an Account for Traders:
Let’s take Binance, for instance, you can easily setup an account by doing the following:
- Goto Binance.com or Binance.us (for those in the US)
- Click on ‘Register Now’
- Enter your email address and password
- Click on ‘Create Account’
- Once your account has been created, enable two-factor Authentication to enhance the security of your account. To do this,
- Click on the ‘Security’ tab on the right corner of the screen
- Click on ‘Enable’ beside Google Authenticator (you can download Google Authenticator from Play Store if you’ve not installed it before this time.)
- Copy the Google Authenticator code displayed on your Binance account and add it to the Authenticator app on your phone.
- Also, proceed to enable SMS authentication.
Once your account has been setup, the next step is to fund it with Bitcoin, USDT (Tether, a stable coin pegged to the US dollar), or your local fiat currency which will enable you to start trading.
You can buy Bitcoin, USDT, or fiat on Binance via Bank transfer, Peer-to-peer trading, debit or credit card, third party payment, etc.
The method of payment you’ll use is dependent on your country since some payment methods are limited to certain countries.
If you’re in Nigeria, you can fund your Binance account via P2P trading.
P2P trading involves buying directly from individuals in your country.
Coupled with that, the crypto platform (Binance, in this case) will serve as an escrow between both transacting parties.
Follow these steps to buy crypto with fiat on Binance:
- Click on the ‘Buy crypto’ tab.
- Select ‘P2P Trading’
- Set the fiat value to your local currency (e.g NGN)
- Set the tab to USDT if you want to fund with fiat or set it to BTC. In this example, we’re buying USDT.
- Scroll down the page and look for a seller offering to sell between the range you want to buy and at a rate you’re convenient with.
For instance, if you want to purchase 100,000 Naira worth of USDT, choose a seller that is willing to sell at least that amount.
The seller must also accept bank transfers or any other payment method (airtime, PayPal, etc.) you want to use.
And before you finally settle for a seller, make sure he/she has at least 90% rating and has made over 50 transactions.
The more the number of transactions, the better.
- Proceed to send money to the account details you’re shown on Binance, and ensure the bank account name matches the seller’s name while transferring. (If the account name does not match, decline to make payment.)
- After payment, click on the ‘Confirm’ button
- Enter your 2FA to proceed with the payment confirmation.
- Wait for the seller to confirm the transfer and then release your Bitcoin, USDT, or NGN to you.
The next step is to transfer the asset from your P2P wallet to your spot wallet to begin trading.
To do this:
- Select the ‘Wallet’ tab on the top right corner of the screen
- Select ‘Fiat and Spot‘ in the drop down menu
- Click on ‘Transfer’
- Choose P2P at the top and Fiat & Spot below it
- Select the asset (USDT) you wish to transfer to spot wallet
- Click on ‘Transfer’
Your asset has now been moved to spot wallet.
You can then proceed to trade Bitcoin or altcoins with your deposited virtual currency.
What’s more, the profit you’ve made from trading Bitcoin or altcoins can also be withdrawn via P2P.
Simply follow the same steps outlined above but this time around, choose the ‘Sell’ tab on P2P.
And ensure you only release funds to a buyer after you’ve been credited and seen the alert on your bank app.
The Binance mobile app will also make it easier to trade assets, hence, download and install the application on your Android or iPhone.
Our guide on futures trading will also help you navigate the leverage market.
b. Creating an Account for Merchants:
As a Bitcoin merchant, you can buy Bitcoin from your friends on WhatsApp, Facebook, Twitter, and other social media pages.
You can even create a website for buying and selling Bitcoin and in turn, make money on the side.
Nonetheless, P2P platforms have made it easier to buy and sell crypto, therefore, register on LocalBitcoins or Paxful.
We’ll use LocalBitcoins in this example.
- Goto LocalBitcoins.com
- Click on ‘Sign up for free’
- Enter a username, email, and password to create an account
- Verify your account via email and then log in
- Click on ‘Buy Bitcoins’ at the top left corner of the screen to make your purchase.
Note: Purchases made from P2P platforms are risky. Thus, you need to carry out certain measures to safely trade with other merchants.
When a list of sellers is presented to you, check the reviews of each potential seller before transacting with them.
If the seller has more positive reviews, a very high feedback score, and has transacted with over 50 people, then you can consider transacting with them.
- From the LocalBitcoins homepage, click on the ‘Buy’ button next to the seller that is selling within the range you want to buy.
- Read and understand the seller’s terms and if you agree, proceed with the transaction
- Enter the amount you want to buy in the field
- Click on ‘Accept terms and send trade request’
- Make payment to the seller and upload your proof of payment
- Confirm that you’ve made payment using the provided button
- Wait for the seller to release the asset to you. And if they don’t you can open a dispute.
The steps above will also enable you sell your crypto for profit on the platform.
You can also create a Bitcoin trade advertisement on LocalBitcoins to either buy or sell at a rate you prefer.
2. Know the Best Way to Trade Bitcoin:
Once you’ve funded your account on a cryptocurrency exchange, you need to know the best way to trade Bitcoin to ensure you amass profit.
There are different trading strategies you can employ and these techniques have to be learnt and mastered overtime.
Day trading is an example of a strategy where you buy and sell crypto on the same day.
Swing trading Bitcoin by buying the swing lows and selling the swing highs can also help you amass profit.
However, this trading method may require that you hold for days or weeks.
There’s also scalping, which involves taking small profits from the market and compounding them.
The bottom line is:
You need to learn technical analysis, which will help you to read and understand candlesticks.
Technical analysis will also help you to understand how to use trading indicators like Moving Average Convergence Divergence (MACD), Simple Moving Averages (SMAs), and Relative Strength Index (RSI).
You can learn these and many more with BiTA.
3. Know the Best Platform for Bitcoin Trading:
There are centralized and decentralized exchanges for cryptocurrency trading.
Centralized exchanges like Binance store your crypto while you trade on their platform.
This means if the platform’s security is breached, funds may be stolen.
For this reason, you need to use one of the best centralized exchanges for trading.
Some platforms that are recommendable are Binance and Coinbase.
Decentralized exchanges, on the other hand, do not store your crypto while you trade.
They interact with the actual wallet where your crypto is stored and then swap it to another crypto asset.
Some of the most popular decentralized exchanges are PancakeSwap, Uniswap, BakerySwap, and BurgerSwap.
While these platforms do not store your crypto, you need to use a secure and reliable wallet to store your asset.
Some of the best crypto wallets out there are Trustwallet, MetaMask, and Blockchain wallet.
How to Trade Bitcoin on Forex
Did you know you can trade Bitcoin on Forex apps such as MetaTrader 4 and MetaTrader 5?
You can long and short Bitcoin, Ethereum, and Ripple as you would for your Forex pairs like GBP/USD, XAU/USD, etc.
So, how can you trade Bitcoin on Forex?
- Add the trading pair BTC/USD or ETH/USD (for Ethereum) on your MT4 app
- Launch the pair
- Long or short and take profit where necessary.
It’s as easy as that!
Can Using Bitcoin Trading Robots Earn You Money?
Have you ever wondered if Bitcoin trading robots can earn you money?
If you have, then you’re not alone.
Trading bots come with a promise of helping you trade for a profit, however, it’s not recommended to rely on bots.
Patiently learn the trading skill and trade on your own instead of relying on bots.
These are the tips on how to trade Bitcoin for serious profit whether you’re new or old to the market.
You have a choice of becoming a trader or merchant depending on your level of skill.
And remember, being a trader needs dedication of time, money, and effort.
As such, f you’re engaged with other commitments, you can become a merchant.
This will allow you to still make money while buying and selling Bitcoin.
The ball’s now in your court to start your first trade today.