Bitcoin Trading: Understanding, How it Works, and the Best Apps in 2021
Bitcoin Trading: Understanding, How it Works, and the Best Apps in 2021 - When it comes to price, Bitcoin is no joke. Bitcoin's value is noted to have jumped 570 percent during 2020, from $ 8,440 at the beginning of the year to $ 29,000 at the end of the year.
Assuming the exchange rate of the rupee to be Rs 14,000 per US dollar, the bitcoin price will rise to about Rs 406 million per chip from about ID 118 million.
This very high profit opportunity is not surprising if it attracts many people's attention to Bitcoin. This cryptocurrency has also been recognized in many countries as a tool for legal transactions.
There are 229 types of cryptocurrencies in the Commodity Futures Trading Regulatory Agency (CoFTRA) that are legal and recognized. Well, these fluctuations and unpredictable nature make Bitcoin highly desirable for trading.
The simple concept of bitcoin trading is to profit from the difference between the sell price and the buy price.
Bitcoin trading is divided into three types: day trading, scalping, and swing trading. Want to learn more about Bitcoin trading and how to read the movements? Check out the full review below.
How to Trade Bitcoin and Tips
Its status, recognized by CoFTRA, allows us to legally trade bitcoin in the country. For those of you wondering, first think about what the terms and conditions of bitcoin trading are.
Here's an explanation of how to trade bitcoin plus tips!
1. Select an exchange
If in stock trading we know brokers or brokers played by securities companies, then in bitcoin trading we need to know exchangers. All forms of buying and selling bitcoins and other cryptocurrencies are carried out by exchanges.
In simple terms, an exchange is a cryptocurrency exchange or exchange service. This is the place where bitcoin sellers and buyers meet. There are 13 exchangers that have been recognized by CoFTRA.
2. Register on the exchange
You can choose an exchanger from a variety of offered features and payment methods. After choosing which exchange is right for you, register on the platform.
Registration is usually not difficult, just enter your identity, email address and create a password for your account.
If you already have an account, you can log in and deposit funds to the account of the exchanger. From these funds, you can start buying cryptocurrency or bitcoins.
From here, you can start your trading process.
3. Select a Bitcoin wallet.
If you already have bitcoins from a crypto exchange, you can store bitcoin assets in your wallet. As the name suggests, a wallet is certainly useful for keeping your investment assets safe.
There are currently three types of bitcoin wallets available, namely online wallets (web system), desktop wallets (in software form), and hardware wallets (in physical form). You can choose which bitcoin wallet suits your needs. Also adapt to the level of risk of each bitcoin wallet.
Lifepal talked about this bitcoin wallet in detail.
Bitcoin trading is one of the ways to profit from one of these cryptocurrencies. Of the 2,000 cryptocurrencies, Bitcoin is indeed the brightest in terms of market cap and popularity.
How to read Bitcoin movement
Bitcoin and other cryptocurrencies are very dynamic. Or you could say that the volatility is very high. After bitcoin has surpassed $ 64,888.99 more than a week later, the price could drop to $ 47,037.37 per chip.
In the stock market, this confusing volatility is causing Bitcoin to enter a bear market.
Basically, there is no definite consensus on fundamental principles or macro-correlations for cryptocurrencies. This is very different from the capital market, which can be analyzed in terms of its fundamentals. Hence, an approach that can be used when observing the movement of bitcoins is to look at the price cycles that take place.
When referring to Coindesk, there are two things to consider when determining whether Bitcoin is moving bearish (down) or bullish (up). First, the occurrence of a decrease or increase in prices of more than 20 percent. Second, if the price does not return within 90 days to the highest or lowest price before the change occurred.
If it reaches 90 days (does not return to the previous point), then it can be called a bearish or bullish trend.
In addition to this bearish-bullish case, Coindesk also divides bitcoin volatility (within 30 days) into three categories: low volatility with a score of less than 0.5, medium volatility with a score of 0.5-1, and high volatility with a score greater than 1. ...
Bitcoin trading types
As mentioned above, bitcoin trading is divided into three types: day trading, scalping, and swing trading. This trading is different from mining or mining bitcoin, which requires sophisticated computer hardware.
Here is a complete overview of Bitcoin trading:
1. Day trading
As the name suggests, trading is done on a daily basis. A Bitcoin trader will buy and sell coins in just one day or the same day.
Using this method, the trader must be very observant and careful, monitoring the continuous movement of bitcoin prices from time to time.
If it is possible for the sell price to be higher than the buy price, the trader will sell it immediately. It takes accuracy and time to become a trader of this type.
This method is more extreme than day trading. It only takes a trader a few minutes to sell their coins. As long as you are making a profit, even if it is small, Bitcoin can be sold immediately. This method only makes a small profit. But this is done repeatedly and continuously.
3. Swing trading
This method is most commonly used by bitcoin investors or users. Not so casual. When trading the swings, traders will observe price charts or market trends without being tracked from second to second or from day to day.
Traders will keep an eye on their assets and will prefer to hold their assets for quite some time. If the price has reached the expected profit, then sell.
Bitcoin trading app options
Bitcoin trading in Indonesia can be done through applications that are already widely available. Don't worry, there are 13 cryptoasset companies, also called exchanges, that have received approval from CoFTRA.
This is governed by the CoFTRA Regulation # 5 of 2019 on technical provisions for the implementation of the physical market for cryptoassets on a futures exchange. These 13 cryptoasset companies provide cryptocurrency exchange platforms.
Below is a list of 13 cryptocurrency exchange platform providers licensed by CoFTRA, along with their application names:
PT Crypto Indonesia Berkat (Tokocrypto)
PT Indodax National Indonesia
PT My Account Dotcom Indonesia (My Account)
PT Pintu Kemana (Door)
PT LunoIndonesia Ltd (Luno)
PT Zipmex Exchange Indonesia (Zipmex)
PT Indonesia Digital Exchange (Idex)
PT Cipta Koin Digital
PT Tiga Inti Utama (Triv)
PT Upbit Exchange Indonesia (Upbit)
PT Bursa Crypto Prima (Bechipin)
PT Triniti Investama Berkat (Bitocto)
Digital asset PT Plutonext
Let's discuss five of them:
Speaking of cryptocurrency trading, Indodax is the senior name to be put in the first number. On the Google Playstore alone, the Indodax trading platform has been downloaded by over 1 million users.
To trade on Indodax, you need to register with your ID and take a selfie with your ID. Apart from bitcoins, there are many other options for cryptoassets that can be traded here.
There is a minimum cash deposit that must be paid to your Indodax account. The amount varies, you need to check directly with Indodax guys! Oh yes, there is a 0.3% Rs. Commission charged for every sale and purchase transaction.
Although local, Tokocrypto has received capital from Binance, one of the
3. My account
Another exchange platform is my account. The registration method is also simple, just enter your personal details and take a selfie. The minimum deposit in my account is Rs 50,000, payable by bank transfer and digital wallet. The transaction fee is 0.1 percent.
This application is quite popular among crypto traders in Indonesia. To create an account, investors need to fill in their personal details and confirm KYC. The minimum deposit is Rs 50,000 if paid by bank transfer or e-wallet.
Another well-known crypto asset company is Luno. If you want to create an account here, you need to verify your mobile number, enter your personal details and confirm with a selfie. Minimum deposit of Rs 50,000 when paying by bank transfer. Transaction fees range from 0.08% to 0.1%.
Cryptocurrency trading conditions
Trading cryptocurrencies is easy. In addition to the lack of sufficiently clear fundamental data on price movements, many technical terms are still new.