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. It's the job of those banks to stabilize the value of their currencies and keep them stable. For comparison, the value of global stock trading is estimated at only a few hundred billion dollars per day. Because of the popularity of cryptocurrency, a market was born to specifically trade cryptocurrency. Bitcoin, a type of cryptocurrency, has piqued the interest of so many people. Bitcoin’s legendary price volatility can excite many investors and traders—especially day traders. In forex trading, dealing in a decentralized currency that offers global transactions with no fees is an advantage. Although cryptocurrencies like bitcoin are gaining popularity, there are still many associated risks. 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. As mentioned, when trading Bitcoin, prices can quickly go very high or very low. Most of the time, your decisions on Bitcoin trades will only come from speculations, which is high risk. Before you consider whether to trade forex using bitcoin, it's helpful to understand how a conventional forex trade works. 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.how to purchase bitcoins with a debit card If the prices still keep going down, you’ll realize that you should’ve sold your Bitcoin. Taking away the thought of losing all of your savings will make you a better trader by preventing you from “panic selling.” So, today, it’s better to think of more simply: it’s like buying an asset, watching its price rise or fall, and choosing to hold or sell it at a later time. Because of this, you must only trade an amount that you’ll be comfortable losing. By this time, it’ll be too late to sell. Mostly, those ways have to do with the fact that bitcoin was invented in 2008, not centuries ago like most forex-traded currencies. A forex trade is simply an exchange of one currency for another at its current rate. But even though talk about “trading pairs” just like forex traders, trading bitcoin is not like forex in important ways. 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. Most of the time, your decisions on Bitcoin trades will only come from speculations, which is high risk. 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.