In the field of cryptocurrency, the bitcoin market always faces a problem: How can one make a profit from Bitcoin? So, what is Bitcoin trading and what should you keep in mind when starting to invest? Let's answer these questions in the "Real Investment Battle" series below.

1. What is Bitcoin trading?

Bashir Aminu, founder of Cryptogene, explains the basic Bitcoin buying and selling process as follows:

“If you buy bitcoin at a certain price and then sell it at a higher price, you will make a profit thanks to the change in price. However, when the price of bitcoin decreases, you will be in a dilemma of not knowing whether to sell bitcoin and take a partial loss or continue to wait and hope that the price will come back, while it does not. There is no guarantee that prices will stop falling.”

Hướng dáș«n giao dịch Bitcoin

There are two types of transactions in the market: short-term transactions and long-term transactions. These two types of transactions differ in the length of time they want to hold Bitcoin before selling it back into the market.

  • Long-term traders often study price trends over a long period of time. Careful market review helps them make decisions to buy and hold Bitcoin long-term in the hope of profiting at a more positive price than the initial level. Because Bitcoin is in its period of strong development, many users recommend buying it now.

=> This advice is completely grounded because the more people accept Bitcoin, the demand for this currency as well as the accompanying technologies will increase, which will increase market demand for bitcoin. other cryptocurrencies. We can see this very clearly in recent times, every time the price of Bitcoin increases sharply, it is always accompanied by a huge amount of transactions right at that time.

  • On the contrary, short-term traders monitor every small movement of Bitcoin every day and take full advantage of any price fluctuations. These traders thrive on market instability, which is also a characteristic of Bitcoin at the present time.

=> In the beginning, Bitcoin transactions often fluctuated very strongly when even a very small event in the field of cryptocurrency could create a very strong impact on the price. However, experts today advise buying Bitcoin now because Bitcoin is entering a more stable period, is more accepted, and is more difficult to lose the support of traders than before.

2. 6 principles of buying and selling Bitcoin

Buying and selling Bitcoin will bring a lot of profit if we really understand each move that needs to be made. According to Mr. Aminu, it all depends on the changing model of the market. The value of Bitcoin fluctuates significantly with each trading day. This will be a danger if we evaluate incorrectly.

Here are 6 principles in buying and selling Bitcoin:

  1. Never apply "One loss, one loss, all or nothing" but should divide the investment capital into many small installments, at many different prices.

  2. Take full advantage of all available technology to achieve maximum profits.

  3. Understand that the market is a continuous process that requires a lot of time, focus and effort. Self-research and updating trends is extremely important.

  4. Know when it is appropriate to invest. This requires us to be truly focused, professional and not influenced by emotions.

  5. Always remember one thing: winning and losing is a must in trading transactions. The most important thing is how much profit we have accumulated.

  6. Regularly monitor Coin exchange rates to make the correct choice.

3. Conclusion

When investing in Bitcoin, applying these six important principles can help ensure success. First, understanding Bitcoin's volatility and being willing to take risks is the most important point. Second, knowledge of blockchain technology and how Bitcoin works helps you make smarter decisions. Third, market research and analysis is necessary to determine the timing of buying and selling. Fourth, risk management and portofolio diversification help protect your invested capital. Fifth, focus on reliable information and don't rely too much on news and rumors. Ultimately, patience and emotional control play an important role in maintaining and achieving long-term success in Bitcoin investing.

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