What moves bitcoin’s price?
To take a position on a bullish trend or short the latest bubble, you first need to understand the factors that have an impact on bitcoin’s price:
Bitcoin Swing Trading
In Bitcoin swing trading, the trader takes full advantage of short-term price patterns. This kind of strategy is based on the assumption that prices never go in one direction and thus keeps on swinging. Which is why, a swing trader looks to make profits from both the up and down-market movements which occur in a…
Bitcoin Day Trading
Bitcoin day trading is a most common kind of trading strategy, which is also known as intraday trading. It involves traders entering and exiting positions within the same day. So, here the trader does not have any Bitcoin market exposure overnight. Thus, there is no avoiding overnight funding charges on the position. This strategy is…
What Is Bitcoin Trading?
Bitcoin trading refers to the act of buying and selling Bitcoin via an exchange platform. In short, Bitcoin can be traded in many ways. The first way is to indulge in buying and selling of BTC on a cryptocurrency exchange. Another way of trading in Bitcoin is by means of derivative financial instruments, such as…
How To Trade Bitcoin
With rising interest in Bitcoin amid stringent regulatory glare and mixed media coverage, trading in this particular currency has become an enticing side gig which helps to make an extra income. Bitcoin (BTC) is the first and most valuable cryptocurrency in the world which is also known as a highly volatile asset, the price of…
The Bitcoin Options Market Is Less Established
While Bitcoin options can be found on traditional securities exchanges, like the Chicago Mercantile Exchange (CME), and on dedicated crypto trading platforms, the BTC options market is still quite young and doesn’t have the deep liquidity found in mature options markets. This can affect price slippage, especially in options with longer maturities.
Understanding Bitcoin Options
Options are financial derivatives contracts that give holders the right but not the obligation to buy or sell a predetermined amount of an asset at a specified price, and at a specific date in the future. In the case of Bitcoin options, the underlying asset is the cryptocurrency Bitcoin (BTC). While the cryptocurrency options market is…
How To Buy and Sell Bitcoin Options
Bitcoin options are financial derivatives that enable investors to speculate on the price of the digital currency with leverage or hedge their digital asset portfolios. Available on both traditional derivatives exchanges and on crypto trading platforms, Bitcoin options have emerged as a popular investment product among advanced crypto traders. For individuals looking to trade Bitcoin…
Example of a Bitcoin Exchange
For example, on a bitcoin exchange, three coin sellers are asking for BTC/USD 2265.75, BTC/USD 2269.55, and BTC/USD 2270.00. A trader who initiates a market order to buy bitcoins will have their order filled at the best ask price of 2265.75. If only five bitcoins are available for the best ask and 10 coins are available for 2269.55,…
Makers and Takers
Online bitcoin marketplaces usually designate bitcoin participants as either makers or takers. When a buyer or seller places a limit order, the exchange adds it to its order book until the price is matched by another trader on the opposite end of the transaction. When the price is matched, the buyer or seller who set the limit price is referred…