Bitcoin exchanges are places that you can hold and trade your cryptocurrencies. Although bitcoin exchanges are very secure, cyber criminals often target these platforms. If you would like to learn more about bitcoin scams and security click here.
There are two popular methods of trading bitcoin in the UK, the first method is investing your money into bitcoin on a trading exchange. The way you profit from the first method is by selling your bitcoins at a time where the rate is higher than what you paid earlier.
The second method is based on the speculation of prices and movement of bitcoin without actually owning any. This tax free method is known as bitcoin “spread betting”. You’re basically betting on whether if you think the market will rise or fall. If you guess correctly you make a profit, if you guess incorrectly you lose money.
Bitcoin Trading Strategies for Beginners
When learning how to trade bitcoin in the UK, these are the fundamental techniques that will help you gain footing in the crypto trading arena. The first bitcoin trading strategy is known as day trading.
Day trading bitcoin is the process of buying and trading bitcoin within the same day. In order to be successful with using this method, you must have both a long term and short term placements with your bets. Capitalizing on the movement of the market will determine if you are profitable for the day.
The next strategy is known as “scalping bitcoin”. Scalping bitcoin is a strategy that includes trading frequently within extremely short time periods. The goal is to capitalize on every positive movement of the market.
When choosing a strategy, please keep in mind that each one has its perks and flaws. Choosing the right strategy will determine on your comfortability with risk and how much capital you have.