Hi guys, it’s nice to have your attention once more on the interesting topic of Bitcoin trading. In my previous post, as you may have realized, I only explained how to start bitcoin trading without a hassle. But I did not explain how the trading is done. It’s simply because I had to save that for this post. So, how really is it done?
How Bitcoin Trading Is Actually Done
Bitcoin trading is all about buying bitcoins at a lower price and waiting to sell them at a higher price. Remember that the price of these virtual currencies changes constantly. It can either increase or drop, depending on certain factors.
Demand and Supply of Bitcoins
One of the key factors that affect bitcoin price is demand and supply. If the supply is higher than the demand at any one time, the price is likely to drop. On the contrary, if the demand is higher than the supply, then there is no doubt that the price will rise.
How Often Does the Price of Bitcoins Change?
The price does change at irregular intervals. For example, it can drop after just a few seconds or several months from the previous shift. In many cases though, it changes daily. Here is a simple bitcoin price trend data from August 25 to October 13, 2020. You can analyze the data to better understand bitcoin’s behavior.
When Should You Sell?
As a trader, your job is to buy and hold on to your bitcoins as you wait to sell them at the right moment. Of course, that moment is when the price has risen. It may occur after only a few seconds, a day or even months from the previous one. In other words, the opportunity does not strike at regular intervals. Basically, that’s how bitcoin trading is done.
The good news is that many bitcoin exchange websites provide the right tools with, which you can track the price behavior of bitcoins in real-time. With that, knowing when is the right time to buy or sell your coins need not be a challenge.
As you can see, bitcoin trading is a relatively simple concept anyone will grasp. So, is getting started with the business. Plus, you don’t need much capital to begin. If you wish to start now, here are some legitimate exchange websites worth taking a look at.