Secret Bitcoin Trading Strategy

 Bitcoin at a Glance

Bitcoin is the first crypto currency that is present in the world. Uniquely, this coin does not have a physical form and is on a network that is often called Blockchain.

At the beginning of its presence in the range of 2010, Bitcoin was obtained by mining using computers with specs at that time. The price of Bitcoin at that time was the same only worth a few Rupiah. However, with technology and a total supply of only 21 million, the price of Bitcoin experienced a dramatic increase in 2017 with a value reaching IDR 270 million per coin.

This amount is of course based on the principle of supply and demand. There are many ways to profit from Bitcoin, for example by mining it, buying when it is low and selling when it is high, or by trading it on a crypto exchange.

What is Trading?

Trading is the activity of buying and selling financial instruments through a trading exchange or broker. This activity is usually only for a certain period of time from short to medium term. Of course, the goal of this trade is to get as much profit as possible from the instruments traded.

This activity can be said to be an activity that is almost the same in every industry and existing financial instrument. For example, trading in stocks, forex, and the latest and most profitable trading with cryptocurrencies.

Types of trading

To start trading in the crypto world, let's identify the types of trading that crypto currency traders often use.

Spot Trading

Spot Trading is a trading or trading of buying and selling currencies and digital assets based on daily prices and usually traded/traded using certain fiat currencies.

Basically, in the Spot market, an investor can only buy, sell and own their cryptocurrency. As such, these trades fall into the basic category when entering the cryptocurrency space. Traders will usually look for profits when their crypto has reached a certain value.

Spot Trading is also one of the most frequently chosen and used types of cryptocurrency exchanges in Indonesia. These exchanges are included in the exchanges that have been regulated by law in Indonesia and are directly supervised by the Commodity Futures Trading Regulatory Agency (BAPPEBTI).

Also Read: Complete Guide to Forex Trading for Beginners

Not only that, Spot Trading also allows users in Indonesia to be able to directly buy crypto currency with Rupiah fiat currency.

By simply transferring money into the bank account of certain crypto exchanges, users can already trade cryptocurrencies.

Trading Margins

Unlike Spot Trading, Margin Trading uses funds provided from third parties. This allows its users to access a larger amount of capital to be able to enter into trades and improve their position in the market. That way, the profits obtained will also be more than trading with ordinary capital. However, this is also in line with the increased risk.

There are several terms that are usually used in Margin Trading.

Margin

Margin has two main definitions. First, it refers to the ratio of profit to income and secondly refers to money borrowed from brokers to increase investment. The second practice includes buying assets where the buyer pays only a percentage of the asset's value and borrows the rest from the broker or trading platform.

Leverage

Leverage is the use of borrowed funds to increase the potential yield or return on an investment. Leverage in Bitcoin trading is usually displayed in a certain comparison form, for example 1:25 1:50 1:100 and so on. This comparison requires how much capital (margin) traders need to get borrowed funds in trading.

Peer-to-Peer Trading

The peer to peer exchange platform can simply be described as a marketplace that we can encounter everyday, where there are sellers who offer assets and then buyers contact the sellers to buy the assets they offer.

Buying Bitcoin on a peer to peer exchange platform allows you to earn between 1-15% below market price. This is certainly quite profitable for Bitcoin users. Peer to peer accounts can also be a surefire way to get Bitcoin prices in various countries which may be cheaper than the user's home country.

Copy Trading

Copy trading is a service that allows traders to automatically copy trading positions made by expert traders by linking their accounts.

Copy trading allows traders especially beginners to essentially copy the actions taken by expert traders. Novice traders can link their accounts when they find an expert trader registered on the platform that provides copy trading services.

Every position taken by an expert trader is automatically copied to the copy trader's account. The amount invested in copy trading depends on two things: the amount staked by the copy trader, and the allowable percentage of the amount that can be invested in one trading activity, as specified in the platform policies.

Futures Trading

Crypto futures are Derivative Products. Such a product is a form of contract. In essence, futures trading is forming a commitment between two parties to buy or sell an asset on a predetermined date, at a predetermined price.

Futures trading is like betting where it is possible for the trader to bet on the future price of the asset. They allow traders to bet on the future price of an asset.

Traders can take long positions and therefore bet on price increases, or short positions if anticipated declines. Traders buy assets on a certain date, and this also applies to traders who sell or take short positions. At the expiration date of the contract, the parties settle it, and the contract is closed.