The Bitcoin Exchange Trading Features

Johnny Walker
Chief Editor
11 March 2018 Updated on  Обновлено   1 February 2023

Today, interest in cryptocurrencies is quite large. Their prices are growing so fast that they are becoming a threat to the global finance sustainability. Many governments fear that cryptocurrencies will damage the national monetary system stability. In contrast to governments, more and more global corporations, both service companies and goods-producing companies, use Bitcoin and other cryptocurrencies to insure risky assets invested in other areas. Cryptocurrency provides excellent opportunities for diversifying personal investments.

exchange trading

The reliability of Bitcoin is questionable because of its virtual nature. However, the market imperfection allows earning huge sums from the cryptocurrency trade even to those who do not believe in it. Now exchange operators use digital technologies: usage of this method has made Bitcoin a very profitable currency.

Trading techniques

In the conditions of exchange trading, there are two ways to manipulate Bitcoin:

  1. Opening cryptocurrency accounts.
  2. Cryptocurrency trading.

In the first case, trading operations can be performed in any world currency. Transaction result (meaning loss or profit) is calculated in bitcoins. Further, the operation profitability will depend on the current BTC rate.

In the second case, there is no intermediary currency: Bitcoin is the trade item. And the profitability of the transaction depends directly on the exchange rate at the time of its execution. You need to navigate the Bitcoin rates; most exchanges do not demonstrate it on the boards. To trade cryptocurrency, you will have to search for special tabs on exchange sites. You need to do it because these tabs show price fluctuations and brokers who specialise in such operations. The unpleasant moment for today is the difference in the Bitcoin price from different brokers, which can provoke some types of abuse. At the same time, traders have the opportunity to cooperate with arbitration services in search of justice.

Judging from the current situation, the cryptocurrency prospects are very bright. The overall growth, despite the short-term fluctuations, indicates a good prospect of long-term profitability.

The possibility of round-the-clock trading is also captivating. In contrast to traditional exchange trading, Bitcoin operations are performed continuously. This is good, but the dangers of Bitcoin trading on non-working (non-exchange) days are quite real. Caution when trading on weekends will not be superfluous.

Reading and analysing

The cryptocurrency operations profitability depends on the analytical abilities of the trader. Necessary activity for the trader is continuous news monitoring:

  • When large company or fund buys a large amount of bitcoins, then it is a signal that it is time to buy them too.
  • When the government of countries with significant economies on a global scale releases new laws on the prohibition of trade in bitcoins, it means that it is time to say goodbye to cryptocurrency.

Such information, usually unexpected, appearing on non-trading days, creates strong price fluctuations. These fluctuations can damage the profitability of the operation.

Bitcoin trading

Summarising, we should understand: to avoid serious risks, a trader must perform elementary analysis, track the current economic situation and exchanges, and take into account the possibility of short-term fluctuations. It will be safer to work with long-term operations with Bitcoin. But as a diversification tool, Bitcoin will be an excellent choice, because its correlation with other currencies is very weak.


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