How To Trade AltCoins Using Bitcoin For Extremely Profits

Thinking about making extra cash while you still do you office job and other business, think Coins trading using the World most accepted cryptocurrency. With the Global adoption of Bitcoin, and the trend at which new comers enters the cryptocurrency community every day and now for the purpose of making more money. There is need to explain certain terminologies associated with the trading of Bitcoin and other Digital currencies.

Trading Bitcoin and other Digital currencies or AltCoins can be very profitable for beginners

 Professionals if studied carefully.

Before we go further here are some basic terms you have to look at for:

The Volume

Volume tells you about trends that are happening. It shows if a trend is going to stay or if it is just a pump/untrue trend. If the price goes up but there is very little volume to support it, odds are the price will go back down. If the price goes up and a high amount of volume supporting it. 

You can believe that the trend will stay. It tells if the price is trending up or down. When the volume bar is green, it implies that the price is trending up or if the volume bar is red, that means the price is trending down

The Candlestick

The blue and red bar you see on trading platforms/chart are called candlesticks and they basically explain the following things;

1.      The price of each coin when it opened and closed. That is, how high and low the price dropped during the time interval. When the candlestick is green, the open is on the bottom of the body and the close is on the top. While when the candlestick is red, the open is on top of the body and the close is on the bottom, which explains that the price closed lower than when it opened. Thus, the upper and lower shadows show us the difference between the high, low, the open and the close.

2.      The other thing is the time frame you are looking at. Each bar is a time frame. For example, let look at a chart that is for 10 minutes, each bar represents 10 minutes on the chart. For short term day trades you look at charts from 1 minute to 30 minutes. For long term trades you look at charts from 1 hour and above.

The Order Book

The order book is basically divided into Bids (red / bottom) and Asks (green / top). The Bids are how much people are willing to buy the coins for and the Asks are how much people are will to sell their coins for. The order book also explains how much support the current trend has. The Bids and Asks should be equal for a perfect trading.

Next Step is Finding an Exchange

Bitcoin has no official exchange, on that note traders can go for anyone that suit their choice and should lookout for the following factors when choosing any exchange:

Liquidity – Traders should always lookout for Bitcoin exchange with high liquidity and good market depth.

Fees – Knowing the percent charged for each trade is paramount.

Trust – How trustworthy is the exchange? Will the exchange run away with traders funds?

Location – Make sure that the exchange accepts payments from your country of resident.

Here Are Some Bitcoin Exchange Market:

OKCoin                      Bitfinex                       Kraken

Bitstamp                     Coinbase                    Poloniex

Create and Fund an Account

From the above listed exchange markets you can decide on which exchange you wish  to create your wallet from and fund it accordingly. 

Choose Among the Coins you wish to trade

Now that you are ready to buy any coins of your choice select the coin/coins you wish to trade at their lower price, buy them using Bitcoin, study them as they rise and decide on when to sell and take your profit, when the coins are on a higher price.

Know When to Buy and Sell

Knowing when to buy and sell a particular coins is the most important part of trading Bitcoin/Altcoins, therefore one need to be very careful in learning when to buy and sell. 

Here is the common profit making strategy:

·         Buy cheap and sell high

·         Sell cheap and buy cheaper

Lucky Trading

FacebookTwitterGoogle+WhatsApp