How is Bitcoin traded?
There are two ways to trade Bitcoin: via spot in the hope of selling it at a later date for a profit, or by trading Bitcoin via derivatives, in which case you don't need to hold the digital currency itself.
Does Bitcoin need to be purchased on an exchange?
Yes, if you want to buy Bitcoin via spot, you can buy it on the BingX digital currency trading platform. BingX is a digital currency exchange with multi-national licenses, where you can buy a variety of digital currencies safely and securely. At the same time, BingX also offers derivatives trading in multiple digital currencies. With these products, you can profit even when the price of digital assets falls.
What is affecting the price of Bitcoin?
Bitcoin trading occurs continuously 24 hours a day. Therefore, the Bitcoin price is subject to abrupt volatility at any time of the day. The high volatility of the bitcoin price makes it a risky trade, but of course, greater opportunities for higher returns are also possible.
Bitcoin Quantity
The total supply of Bitcoin is limited to 21 million. Estimates suggest that Bitcoin will be fully mined by the end of 2140. The remaining stock of Bitcoin affects prices based on how quickly they enter the market.
Bitcoin Market Capitalization
The market capitalization of Bitcoin, or how much people perceive it to be worth, affects whether traders choose to go long Bitcoin (expect its price to rise) or short the bubble (expect its price to fall).
Negative Reviews from the Media
All currencies are affected by public perception, especially Bitcoin, which has been questioned constantly since its inception. Even to this day, the security, value, and longevity of Bitcoin are still questioned.
Integration of Payment Systems
The amount of confidence in Bitcoin depends heavily on whether it can be integrated into a new-generation payment system.
Industry Adoption
As of yet, Bitcoin has not been fully accepted or adopted by global enterprises, so it remains to be seen what role it will play at the enterprise level.
Major Events
Major events can severely impact digital currencies, including regulatory changes, security breaches, macroeconomic setbacks, and more.
“Long” and "Short": How to profit from trading Bitcoin?
"Long" refers to profit from a price appreciation of an asset. For example, you buy Bitcoin and the price of the Bitcoin goes up. Then you sell your Bitcoin and earn from the price difference. "Short" refers to profit from a price fall of an asset. For example, you expect a likely price decline of Bitcoin and you sell short Bitcoin in futures trading (without actually owning Bitcoin). Then you wait for the price to go down further to buy back the Bitcoin. In this way, you also earn from the price difference. We can opt for long or short based on the specific market condition.
What are the different strategies for trading Bitcoin?
Day Trading
Positions are opened based on speculated price movements in the short-term and closed at the end of the trading day. Choose this strategy when: You seek short-term market opportunities for Bitcoin, such as when you see positive news or learn of an exclusive tidbit about Bitcoin.
Swing Trading
The price of bitcoin will maintain an uptrend or downtrend for a period of time, which is called a swing. A swing trader is the type of trader who will take advantage of each up or down trend to hold bitcoin for a longer period of time until a market inflection point occurs. Judge each big market that occurs and open a long/short position! If your judgments are accurate, you can make great profits!
Scalping
Make frequent trades when the price fluctuation is relatively small. Choose this strategy when: You are trying to profit from continuous trading when the price movements are small rather than waiting for the next major price breakthrough or volatility arrival.
Automated Trading (Grid Trading)
Use BingX's automated trading bot instead of relying on yourself to buy low and sell your digital assets high in changing market conditions. Choose this strategy when: The market is steadily rising, and using automated trading strategies can help you save and capture every opportunity.
Copy Trading
There are over one million users in the BingX social trading community. You can replicate their trading strategies with one click and copy traders to make profits together.
Why BingX
Buy crypto securely and efficiently
One-stop access to all crypto spot and derivatives markets
Social trading platform: Copy Trading with one click