Through this article, we want to give a few basic tips and tricks that can be used by you, in gaining the PROFIT in trading Bitcoin!
NOTE FOR FOREX USERS
Many Bitcoin traders who were previously forex traders were a little confused when they first tried to participate in the Indodax market. Bitcoin trading is very different from forex trading because of the terms of trading even though it’s different. From forex we know 2 terms: Long and Short. Long is targeting rising prices to get a profit and Short is targeting lower prices to get a profit.
Whereas in Bitcoin trading it is much more similar to buying and selling goods online, that is, BUY and SELL. BUY means actually buying items in the form of Bitcoin and SELL means actually selling goods in the form of Bitcoin. So the profit is simple namely the selling price minus the purchase price. So there is no Margin Call and PIP terms in Bitcoin trading. Selling profit or loss.
Note # 1 Forex and Bitcoin are not the same – don’t force it.
BITCOIN TRADING TIPS
In trading Bitcoin we must have a goal so as not to get confused, because sometimes beginners especially the Idealist Bitcoiner are often confused having to collect Bitcoin or even pursue profit in selling Bitcoin. If you have decided to become a Bitcoin Trader, sorry you have to bury your Idealist Bitcoiner soul deeply. Remember, we are here collecting rupiah from the difference between buying and selling and not goods in the form of Bitcoin.
Note # 2: Holding Bitcoin means that you are holding an item that has to be sold.
Note # 3 Holding Rupiah means that you are looking for the best position to buy merchandise.
TRADING TECHNIQUES IF THE SUPER POSITIVE MARKET CONDITIONS
Positive market conditions means that there is a tendency for Bitcoin prices to continue to rise throughout the day. For example this morning the price of 3,700,000, a few hours later 3,800,000 the next 4,100,000 and so on. Under these conditions Bitcoin trading tends to be easy. Why ? because you just buy at a cheap price and sell it at a price slightly higher than the purchase price. Just enjoy the profits until the market increase is finally saturated so you have to stop buying and wait for prices to fall back.
Note # 4 Don’t be greedy about setting sales targets, as long as it’s profitable then make it a habit to be satisfied and don’t try to sell at unreasonable prices unless you’re absolutely sure.
TRADING TECHNIQUES IF THE SUPER NEGATIVE MARKET CONDITIONS
Now this is the most feared Bitcoin traders. What if prices tend to continue to fall? This morning 4,200,000, a few hours later 4,100,000, a few more hours 4,000,000? If you try to buy and then try to sell at a price higher than the previous purchase price it will definitely be a loss because no one wants to buy your Bitcoin far above the market price unless the buyer really needs it. Remember the buyer is also a smart person who knows what a reasonable purchase price when buying.
But market conditions that tend to go down actually if we are SMART enough to have its own advantages.
Anton has a 3BTC Bitcoin balance, he bought at the price of 4,300,000 whereas currently the price of Bitcoin is at a price of 4,200,000. If Anton insists on selling it, Anton will lose 300,000. But Anton realizes the price of Bitcoin will tend to fall at the price of 3,900,000 because the international market is declining which will surely be followed by the Indonesian market. So Anton sells 3 Bitcoins at a price of 4,200,000, then Anton gets 12,600,000 rupiah. With this money Anton managed to buy Bitcoin at the price of 4,000,000 because the market moved according to what Anton predicted, then Anton managed to buy 3.15 BTC. It turns out the next day the price of Bitcoin moves up to 4,200,000 again and Anton sells all of the Bitcoin he gets to 13,230,000 or that means a profit of Rp 630,000.
Based on the study case above, it can be seen that if a previous purchase error occurs, we can take the opportunity of a sharp price drop to increase profits in this way or at least reduce losses.
Note # 5: Dare to sell at lower prices when the market is negative so you can get a profit
TRADING TECHNIQUES IF STAGNANTS
Stagnant market conditions tend to be boring but this has its advantages for small medium traders. Why ? because the price is very predictable! Simply put the net purchase price at low and the selling price is slightly above the purchase price, the profit is obtained. Repeat continuously every hour. The bitcoin market tends to be like playing ping pong – tick tock tock tock tock. Every tick of the tok is the sound of your profit ?
Note # 6 Listen to the sound of tick tock tick tock when the market is stagnant with a smile
ESTIMATE MARKET PRICE
Estimating market prices for forex traders who are accustomed to reading complicated graph numbers is easy but what about us as ordinary traders? Don’t be discouraged, let’s use some of these indicators to help us
The price of Bitcoin in Indonesia is more positive than the lowest price
Every day the supply of bitcoin around the world increases by more than 1 million dollars from miners around the world until the end of 2016 but in Indonesia the number of buyers is greater than the number of miners available so prices tend to be always higher than the Chinese and Russian markets where there are many Bitcoin miners
Note # 7 Indonesian prices are rarely below the price of BTC-E because our market tends to be positive and lacking in supply of Bitcoin.
The Indonesian market is a follower
The Indonesian market is people who do not want to lose and are afraid of profit ? Why is that? because we always see outside prices go up or down. So that we can take advantage of international prices on the ticker. If there is a difference of more than 150,000 our prices will generally follow, so you can guess the price that will occur
Note # 8 Indonesian prices are always slow to follow international prices, use to read trends.
Hopefully this brief review can be useful for beginners Bitcoin traders. Continue to advance Bitcoin traders in Indonesia!
CAUTION Bitcoin trading is a high-risk activity. Bitcoin prices fluctuate, where prices can change significantly over time. Please use extra consideration in making the decision to buy or sell Bitcoin. indodax.com does not force users to buy or sell Bitcoin, as an investment, or for profit. All Bitcoin trading decisions are independent decisions by users.