Trading bitcoin is a very profitable venture as long as you are willing to be patient and adopt some useful strategy. I may not be a professional forex trader but the little i have learnt through self study and practical experimentation is really helping in my crypto trading.
some common strategy that are of help to make profit include
1 Buy cheap and sell high
2. sell cheap and buy cheaper
question 1: what do i do if i buy and the price falls instead of rising? am i not loosing?
answer 1: Trading cryptos is not a smooth ride all the time. Dont invest funds you cant afford to loose. however there are more profits to be made than loses. trust me i have been there.
To answer question1. If you notice a fall in price of a coin you bought, some exchanges offer a tool to help you set a stop limit. you can use this tool to minimise your loss if you cannot wait to long for the coin to increase in value.
the second way which to me is the best is this. Lets assume you have 3 bitcoins and you have decided to trade it with litecoin(ltc). Assuming the price of 1 litecoin is say 840,000 satoshis , do not buy litecoin with all your bitcoins at that price of 840,000 sats because cryptos is very volatile and the price may crash from 840k sats to 780k sats.
This is what to do. Use 1 btc to buy litecoin when the price is 840k sat so that when the price falls to 780k sats use another btc to purchase at the new price and monitor the market. if it falls to say 700k purchase again with the remaining btc and then find your average buying price which should be about 773k sats. At this point you start monitoring your investment. Any price above 773k sats is a profit for you which can happen that day, in 2 days or a weeks time. If the price rise to 890k sats and you decide to sell at that price you will be making about 3.454 btc.
At this point you can remove your profit of 0.454btc which is about $190(above N50,000) and reinvest your 3btc again.
I was able to convince a friend to try out this crypto trading after showing him my proof. He reluctantly parted with N15k thats about 0.108 bitcoin i had to assure him that i will insure the money for him. All this happened about 4 days ago. I guided him and we used the 0.108btc to buy an alt coin called syscoin which was doing well. we bought it for 633 satoshis few days later which was yesterday the price rose to 748 satoshis. I adviced we sell at that price and made about 0.13btc thats a profit of 0.022btc.(confirm the price of syscoin at www.poloniex.com)
The profit may not be much but imagine if he invested 1btc, a profit of about 0.18btc ($75 = N21500 or so)would have be made.
i will post pictures of where i bought with my debit card and other pictures.
you can confirm it from the blockchain https://blockchain.info/address/1H1xLzWNtsmSJCC81gJtQ6ag2kbi4pNg
NEW UPDATE 1 (3/3/2016)
Sorry everybody following for the delay in posting. i was blocked from posting and i dont really Know why.
Today i want to talk to you about a coin that you should try and buy while it is still cheap. it is called ETHEREUM(eth). when i started the crypto trading about 6 months the price was less than $0.5 that is about 200,000 satoshis or so. when i started this topic few days ago it was about $5. My brothers and sisters it is now about $10.
I will post reasons why you should buy this coin and keep. I personally have started buying mine. stay tuned
NEW UPDATE 2 (3/3/2016)
As a speculator looking for coins that could have potential value in future below are checklist of what to look for
1. The developmental framework of the developers usually stated on their website and forums.
2. Watch out for daily, weekly or monthly update concerning the coin.
3. How many exchanges trade the coin. you can always find the info on coinmarketcap.com
4. How many notable investors are behind the coin
5. speed of transaction verification.
6. volatility of the said coin over the months. you can plot a visual trend from the chart usually made available in these exchanges
NEW UPDATE 3 (3/3/2016)
UNDERSTAND THE UNIT SYSTEM SO YOU DONT GET CONFUSED
1 bitcoin = 100,000,000 satoshis
0.1btc = 10,000,000 satoshis
0.01btc = 1,000,000 satoshis
0.001btc = 100,000 satoshis
0.0001btc = 10,000 satoshis
0.00001btc = 1,000 satoshis
0.000001btc = 100 satoshis
0.0000001btc = 10 satoshis
0.00000001btc = 1 satoshi.
Now this info will be usefull to those looking for free bitcoins from faucets. From my experience, i have never seen a faucet given out 1 full bitcoin, what they offer is satoshis ranging from 1 to 10,000 sats maybe 100,000.
Apart from fixed deposit, treasury bills, and government bonds. Crypto currencies is another lucrative investment anybody should give a try. I operate a fixed deposit account but i am bold to say that crypto currencies has brought me more returns than fixed deposit.
For anyone have spare money lying around doing nothing for you. I will advice you give crypto currency a trial. If you are to skeptical as i was at the beginning, you can test the waters with N1000 to N5000 worth of bitcoins in trading and see if you profit or not within a week or month.
I personally started with about N5000 worth of bitcoins (btc was about $245 6months ago)or so to test the waters. After a week i made some profit. My concern then was how to cashout but i discovered that there were many exchangers willing to buy at the prevailing market. So that is no problem at all
UPDATE 4 4/3/2016
What are buying orders?
Buying orders are simply orders created by buyers for sellers to fill. As a buyer, if your order matches any of the selling order it will automatically be filled. if it does not match, it will automatically be moved to buying orders
What are selling orders?
Selling orders are simply orders created by sellers for buyers to fill. As a seller, if your order matches any of the buying order it will automatically be filled. if it does not match, it will automatically be moved to selling orders
i will post pictures to illustrate
UPDATE 5 4/3/2016
Become self employed trading cryptos
Crypto currency trading can help you become self employed. With an investment of 0.1btc or more you are an your way to becoming self employed.
I am not saying this because i read one ebook or bought a dvd explaining how to. I am actually doing it full time. it is not a difficult rocket science task. A primary school student can do it.
I advice anyone who wants to venture into this exciting terrain with at least 1btc. This is my own personal experience i want to share now.
As at yesterday(3/3/2016) i bought a coin called radium with more than 1btc( let just say 1btc for simplicity) at the rate of about 73,000 sats, today now as i am writing this post the price of radium as increase to 87,100 sats. if i decide to sell of my radium now as i am writing this update i will be getting about 1.19btc. From calculation my profit will be 0.19btc( $78 = N21,971 or so) within 24hrs.
you see how lucrative it is to trade cryptos. The fun part of it is that there is a possiblity for this fluctuation in price to occur 3 to 5times in a week. yes in a week, I am boldly talking from experience.
However, i will not sell now because i feel the price may hit about 100,000 sats or at least above 93,000sats then i will sell remove my profits and reinvest back my 1btc.
So if you are unemployed, cry no more because crypto trading is a way to be selfemployed
UPDATE 6 6/3/2016
Hello Guys, I am so excited because i just sold the RADIUM coin i bought for about 73,000 sats two days ago at an average selling pricce of about 96,000 sats. Remember i told you i invested more than 1btc. Lets calculate my profits based on 1btc investment. After selling at 96,000 sats i will be having 1.315 btc. My profits is 0.315btc($120 = N35,078).
You can confirm the price from the btc/rad chart at poloniex
This is a decent way of earning a living if you ask me.
UPDATE 7 6/3/2016
After my little exploit earlier, I decided to use 2 bitcoins to buy a coin called MAIDSAFECOIN at the rate 28,505 sats this morning with the hopes that it will rise above 32,000 sats before i sell.
Now, you maybe wondering what prompted me to buy this coin. Well, it is not that i can see tomorrow(i wish i could though LOL) it is all based on calculated guess as a result of the information that is available to me about the coin.
1. 1 to 2 weeks trend: the coin has been showing an upward trend since the past 2 weeks. For every fall in price there tends to be a significant rise in price. This is what motivated me.
2. Again the trading volume and the buy support is a great motivator too.
I am willing to wait at least 2 to 4 days tops a week to see how i fare. if the price hits about 35,000 sats, i will definitely sell and collect my profits. I will be updating on that............. stay tuned
UPDATE 8 8/3/2016
I invested 2btc to purchases maidsafecoin at the rate of 28,505 sats. Now the price of maidsafecoin is about 23,950 sats, which a fall in price. If i decide to sell now i will be making a loss which i dont want. So what do i do? simple i just wait another day and see how it goes.
The question now is what if the price falls further, is there something to be done? A big yes. Even when the price is falling you can still make a profit. I will tell you how in the next update...... stay tuned........
UPDATE 9 8/3/2016
HOW TO START TRADING
I have received so many calls on how to start trading as a newbie and the need for someone to hold them by the hand and guide them. personally, nobody thought me all what i know now, i learn the hard way.But the goodnews is that you dont need to learn the hard way anymore.
1. register for an account at any exchange of your choice(i have more than 10 verified accounts in different exchanges).
2. Purchase your bitcoin( i advice minimum 1btc if you can afford it) from any verified nigerian exchangers or use your debit card to purchase from cex.io after verification.
3 move your bitcoin to any of the trading exchanges you have registered with then decide which coin you feel is cheap and likely to increase in value.
4.After decision making, you buy the coin and start monitoring the market with the hope that the price will increase in value after a day or week etc.
NOTE: your decision to buy any coin is not based on the fact you know the outcome of the coin tomorrow. it is based on realistic information/parameters available about the coin prior to its been purchased. which include the following
1.one to four week chart trend
2 the trading volume
3 the buy support
4 recent developments on the coin by its developers etc
UPDATE 10 10/3/2016
CONTINUATION OF UPDATE 8
When a coin you bought is falling in value, this is what to do inorder to minimise loss or even eliminate it entirely
1. Make sure you have reserve buying coin(btc) to cushion the effects of the fall. chances are that the price may pick up and you will be making profits all the way.
this is what i mean, if you have 4 bitcoins and you strongly believe maidsafecoin is the coin to buy at the moment, and also not forgetting that cryptos is volatile, you first of all buy with 2 bitcoins and monitor the market, if it falls use the 3rd bitcoin to buy at the new price. if it falls again use the 4th bitcoin to buy at the new price at this point you now have an average buying price lower than the price you bought with 2 btc initially. if the price now rise above the average buying price, you will be making a profit.
if it does not increase, and you cannot wait to long, at this point you decide the percentage loss you are will to take and leave the market for another one. this should be the last resort though because i have use this method and got burnt. As i was counting my loss and leaving the market about 10 to 15mins later the price almost trippled
LESSON to be learnt from crypto trading is PATIENCE PATIENCE PATIENCE.