Steps to trading bitcoin
Steps to trading bitcoin, to trade CFDs, you will first need a trading account with IG. Once the account is set up, you can do your first trade as soon as you add the funds.
Keep in mind that you will not need an account on the Bitcoin exchange unless you buy it or follow it. This is because you are trading on the rates that we offer, which we derive from different exchanges on your behalf.
Create a trading plan
After choosing a trading strategy, it may be beneficial to prepare a trading plan if you are new to the markets. A trading plan may help you make objective decisions even if the stakes are high, thus, you will not leave the trades open for a long time or close them prematurely.
Here are some tips for preparing a trading plan:
· Define the goals you want to achieve, and divide them into short-term and long-term goals
· Decide what risk is acceptable in each trade, and the amount of risk you are willing to take as a whole
· Choose your risk-reward ratio to find out the potential profits you need to cover potential losses
· Choose the markets you want to trade. Do you want to trade bitcoin only or try other currencies?
Do your research
Before you start trading, you should be aware of the latest Bitcoin news, in order to fully understand what will happen to the price of the virtual currency in the future.
When interpreting Bitcoin's behavior, charts can be a valuable tool. Past data may help you understand how the market is moving, while a time frame comparison gives a closer insight into trends and patterns.
Trade
Once your position is stabilized, you will need to place a trade using our web platform.
You will enter the amount you wish to use in your trading on the trading card. You can also set your own conditions: setting a pause to close your position when the market moves against you by a certain amount, or request a limit when it moves in your favor. Stops and limits are pivotal to good risk management.
If you think the value of Bitcoin will go up, then you will buy, and you will sell if you think the value will decrease.
To close your position, you simply have to reverse what you did when opening the position. If you bought at the beginning of trading, you will have to sell the same amount; If you sell, you will have to buy this time.
We will automatically fill in your trading card with the position size, meaning that you will only have to click on "Buy" or "Sell" to close your position.