Did you know that Bitcoin rose 193,639.36% between 2012 and 2020?
Feeling like you missed your chance? Well, you didn’t. The worldwide blockchain market is predicted to grow up to a staggering $23.3 billion by 2023.
You might be hesitant because you don’t have a good strategy for Bitcoin trading. You might not even know how to trade Bitcoin.
Have no fear! This brief guide will explain several popular strategies for trading with Bitcoin.
Timing Buying Bitcoin
Bitcoin can be bought at any time and never closes like the stock market. This can make timing your buys tricky, but some times are better than others.
Mondays are a good time to buy Bitcoin because prices tend to be lower. The afternoon is better for buying than mornings. However, buying after business hours is usually best. The later the better.
August is historically a great time to buy Bitcoin and factoring this in is good for any crypto trading plan.
It’s also important to follow media coverage of Bitcoin. This can greatly influence the highs and lows and obviously buying lower is ideal.
When To Sell Bitcoin
Buying low and selling high may seem simple enough, but it’s not the only effective strategy. It’s never bad to take some profits, but selling completely after a Bitcoin rise could cause you to lose out on the next rise.
Bitcoin’s value continues to grow at a steady rate and this makes holding long-term an attractive option for many. Also, holding will increase your chances of profiting even if you mistakenly bought high.
The timing of selling really depends on your current financial needs and what your long-term and short-term goals are.
Converting Profits To Cash
You may want to convert your bitcoin to cash if you reach your short or long-term goal. Afterwards, you can move that cash to your bank account.
Being able to cash out is a common concern for new crypto traders, but it’s much easier than most would assume.
One way to do this is by using a broker exchange like Coinbase. They require a verification process first. Once verified you’ll be able to buy and sell Bitcoin, convert it to cash, and transfer it to a linked bank account or PayPal account.
Another way is to use Bitcoin debit cards or a Bitcoin ATM such as bytefederal.com. Bitcoin ATMs work just like any other ATM and allow you to withdraw physical cash. You can also convert cash to Bitcoin at these ATMs.
Peer-to-peer platforms like LocalBitcoins allow you to sell Bitcoin directly to other buyers for cash. This method is fast and offers more anonymity. However, P2P lower liquidity and you may encounter fraudulent buyers.
Create Your Strategy For Bitcoin Trading
Now you know when it’s the best time to buy, sell, and hold Bitcoin. You also know how to convert your Bitcoin to cash whenever you want.
Those are the basics, but personalizing your strategy for bitcoin trading largely depends on your preferences and finances. So, set a goal, make a plan, and start trading Bitcoin today!
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