Meanwhile, is typically valued at less than $100 billion per day, though it rose slightly above $1 trillion on two days in 2018. The price behavior of Bitcoin can be very volatile. But because cryptocurrencies are such a brand-new asset class, even experienced investors may find themselves asking, “How do I trade bitcoin?” Since Bitcoin is the most known cryptocurrency, many people started trading Bitcoin online. As mentioned, when trading Bitcoin, prices can quickly go very high or very low. For instance, there will be a time when the prices start going down. But even though talk about “trading pairs” just like forex traders, trading bitcoin is not like forex in important ways. Mostly, those ways have to do with the fact that bitcoin was invented in 2008, not centuries ago like most forex-traded currencies. That’s the number one rule to become a successful Bitcoin trader. Bitcoin is a digital currency, so investors may think of it in terms of the foreign currency exchange (forex) market. Because of the popularity of cryptocurrency, a market was born to specifically trade cryptocurrency. However, there will be a time that prices will suddenly go down. That’s the number one rule to become a successful Bitcoin trader. By this time, it’ll be too late to sell. Setting a target, both buying and selling, will help you avoid acting greedy on a trade. If you’re familiar with forex trading, trading bitcoin is most like “spot” trading a currency pair.where to buy bitcoins online Another key difference is that the IRS treats bitcoin as property, not currency, for tax purposes, so the tax consequences of bitcoin trading may be different from trading fiat currencies. Bitcoin, a type of cryptocurrency, has piqued the interest of so many people. But the tradeoff is essentially adding a third currency to what was a trading pair. Because of the popularity of cryptocurrency, a market was born to specifically trade cryptocurrency. To prevent yourself from making impulse decisions when high volatility occurs, it’s very important for you to determine your limits. is that you have to determine and set a price that you’re willing to cut loss or take profit before the trade. Most of the time, your decisions on Bitcoin trades will only come from speculations, which is high risk. But even though talk about “trading pairs” just like forex traders, trading bitcoin is not like forex in important ways. Consequently, bitcoin trading is simpler and more straightforward than forex. On the other hand, if you don’t have any target price for taking your profits, you’ll start becoming greedy as the prices keep going up. Bitcoin’s legendary price volatility can excite many investors and traders—especially day traders. Forex is far-and-away the world’s largest market, with daily trading volumes around $6.6 trillion, according to the Before you even start trading, don’t use all of your savings to trade Bitcoin.