People are always thinking that bitcoin trading is very risky and no one can make a profit. But do you think traditional currency pair trading strategy has zero risk factors? Bitcoin trading is much safer since the obvious trend is bullish. On the contrary, when you trade the major pairs like AUDUSD, EURUSD, etc., you never certain of the market trend. The trend often gets changed due to some political speech or the global market crisis. But when it comes to bitcoin you have more freedom to earn money. In the past, people used to buy bitcoins and hold it for months to earn some heavy cash. But these are now obsolete strategy. Just like your regular currency pairs, you now have to access to the BTC/USD pair.
The trend is more perfect
If you compare the trend of the bitcoin, you will be surprised to see the perfect nature of the pair. Finding the overall trend in the bitcoin is easier since you don’t have to deal with huge data. Making profit based on lower time frame analysis is also easy since the pair is extremely volatile. However, never think trading the bitcoin requires zero knowledge. You have to develop your skills just like the professional currency traders and only then you will be able to find quality trades. In the past people used to think to buy bitcoin is the only option but things have changed a lot. You can sell BTC/USD and start changing your life. But this doesn’t mean the price will always fall or rise. You should have the ability to find a trend or else you can’t trade bitcoins.
The volatility of the asset
Many Aussie traders often think trading CFD is safe. The conservative traders prefer CFD trading due to the stable price movement of the asset. But when you deal with things in a conservative way you kill the profit factors to a great extent. You need to take a smart and bold decision to improve the profit factors in trading. If you analyze the bitcoin price you will be surprised to see its volatility. Even the cross pairs or XAU/USD is not as volatile as bitcoin. So, those who can analyze the BTC/USD pair with accuracy can significantly improve the profit factors in trading. Volatility is your friend, not your enemy. Take its full advantage and start changing your life.
Trade with low leverage
When you trade the major currency pairs, you are getting access to high leverage environment. For instance, you can trade the AUDUSD pair even with 1:500 leverage. Though this increases the profit factor, it also increases the risk. If you trade the market with the aggressive approach by using such high leverage you are going to blow up the trading account. On the contrary, the brokers are giving very low leverage (for example 1:2) to trade the bitcoins. This means you don’t have to risk a big portion to open the trade. Trading bitcoin is safer since the brokers don’t allow you to increase the risk.
Keep pace with market change
When you fail to keep pace with the dynamic market, you start losing money. As an investor, your prime concern should be the safety of your investment. Choosing bitcoin as your trading asset, you limit the profit factors to a great extent. On the other hand, the risk factors are also minimized. So, how can we trade bitcoins like the pro traders? You need to analyze the technical data to find the sweet trading spot. Instead of taking a risk in a real account, use the demo account to develop your skills. Once you learn to trade with confidence start trading the real bitcoins using a high-end broker. And try to keep pace with the trending market. Become an active trader on the social networking site so that you don’t have to miss any major news.