Trade bitcoin like a pro Olymp Trade.pdf

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How to trade bitcoin like a pro on Olymp Trade
The popularity of cryptocurrencies has recently increased. It is noticeable also on
Olymp Trade.
More and more people are interested in them, especially bitcoin. Many have succeeded in
trading cryptocurrencies. Let's take a closer look at bitcoin. You will learn what it is and how it all
works.
Bitcoin - what is it?
The first thing you should know is that there is a slight difference in Bitcoin and bitcoin. Bitcoin
with capital letter B corresponds to technology. Bitcoin with a small b refers to digital currency.
The easiest way to describe bitcoin is to say this is a digital currency that is absolutely paper-
free. There is a dedicated encrypted peer-to-peer system that can secure bitcoin on a computer.
And this is the only way.
Bitcoin
is a new kind of asset. It can be characterised as unpredictable and volatile what means
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that its price changes considerably in a short timeframe.
Bitcoin - how does it work?
After you understand how bitcoin works, you will be also capable of trading other
cryptocurrencies. The main thing is they are decentralised. Traditional currencies work with
banks. Digital currencies do not.
Bitcoin is totally different. It is a decentralized digital currency. It is not printed by a central bank
like fiat currencies. Bitcoins are generated as a reward in the process called mining.
Transactions are decentralized, so money can be sent directly from person A to person B within
a peer-to-peer bitcoin network. Every single operation is verified by this network of connected
computers through advanced cryptography and then stored in a ledger called the blockchain.
Bitcoin - why should you trade it?
Obviously, any trader is particularly keen to invest money where he will see high chances for a
big profit. Bitcoin is a quite new asset, still very promising. As mentioned earlier, it is
unpredictable and volatile, but despite the risk, there is still much to do with it.
High volatility.
Basically all the other assets and conventional currencies depend on the economy of the
country. Bitcoin does not. It is independent of the governments and unpredictable. But high
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volatility is only its feature and knowing it allows to use it to your benefit. You can trade in a
short time, yet make big profits.
Transaction currency.
Together with popularity bitcoin has become useful. Nowadays we can pay in bitcoins like it was
any other currency. There are more and more places where you can actually use bitcoin as a
payment method. You can transfer bitcoins to other individuals as well. Just be careful and
check always, if the service charges any commissions or fees.
Bitcoin - what is the price?
There is no fixed price and, as said before, it doesn't rely on the country's economy. Supply of
bitcoins is limited to 21,000,000. This simple fact puts bitcoin in the group of limited amount
assets similar to precious metals or land, where everyone knows that those goods are limited.
So what is it that influence bitcoin's price? User's demand. The more people buy it, the bigger
demand and at the same time the price. Analogically, when fewer people buy it, the demand
decreases and the price falls.
How to get bitcoins?
Buying bitcoins is not that complicated as you may think. With today's technology is actually as
simple as signing up for the e-wallet and cryptocurrency exchange platform. As soon as you are
registered, you may deposit the money for investment. You simply use your credit or debit card
for that. And then you buy bitcoins the same way you are buying conventional currencies.
After buying bitcoins, store them and wait until the price rises. You can easily keep your digital
money with e-wallet as it provides a secure store. When the price reaches a satisfactory level,
you may resell bitcoins in exchange for any traditional currency you choose.
The contract for difference on bitcoin.
On Olymp Trade platform you can trade bitcoins through digital options or CFD. It means you
can trade bitcoins without owning them. CFD stands for contract for difference. So instead of
registering in cryptocurrency exchange and signing up for e-wallet, you can trade BTC with
Olymp Trade. With CFD it is easy, you simply buy or sell depending on your prediction.
There is a leverage tool available on CFD called Multiplier. What it does is multiplying your
money so you can invest more than you actually have. If you, for example, have $20 and decide
on the leverage of times five, you are able to invest $100. Just be careful with this option,
because the same way it can bring you massive income, it can take you down.
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You can trade bitcoins through digital options or CFD
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Why Olymp Trade is the best choice for trading bitcoin?
The best of tools.
You are now aware of the fact that bitcoin is highly volatile. You need to make it the advantage
for you and at Olymp Trade you get the best tools for that. Chart layouts, available technical
indicators, detailed history quotes, expert market analysis to name just a few. But you may be
most interested in market updates, which Olymp Trade offers too.
Customer support available 24/7.
The other traders experience is very valuable and Olymp Trade is making sure you join a
community of traders with similar mindset. You will learn from each other, you will exchange
opinions, you will share your doubts and successes in trading. And you can do it all without
leaving the trading room.
Here is the basic knowledge about bitcoin itself and trading it at the Olymp Trade platform. For
more about the digital currency, please check our
guide to bitcoin trading.
And be kind to leave
your feedback in the comments section below.
Wish you a great experience!
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