Cryptocurrencies have surged in value over the past few years. With the rise of digital currency and the convenience of mobile trading, there’s never been a better time to get involved. Cryptocurrencies are traded 24/7, which makes it easier than ever to buy and sell them. However, not everyone is comfortable with trading on a computer or tablet. Trading cryptocurrency via a smartphone is much easier than you think — here are five simple tips on how to trade Bitcoin on a smartphone.
1. Set up your trading account.
The first step to trading Bitcoin on your phone is to set up a trading account that’s easy for you to access. Devices like iPhone and Android phones have their app stores, but there are many options available if you don’t have a personal phone.
Some of the most popular apps include Bitcoin wallets such as Immediate Edge, trading platforms like Bitfinex, or news sources like CoinDesk. Some apps will allow you to trade Bitcoin without having to register an account.
2. Develop a risk appetite.
One of the most important tips for trading Bitcoin on a smartphone is developing a risk appetite. Buying and selling cryptocurrency is different than traditional stocks, so your margin of error is much smaller. You need to set up a strategy that can accommodate losing money — or even all of your money — to win. Be sure to set a stop-loss point before you trade, so you don’t lose more than what you can afford to lose.
3. Don’t be afraid to wrap your head around the lingo.
Bitcoin, or BTC for short, is the most popular cryptocurrency. It’s important to understand how Cryptocurrencies work before you start trading them. The first step to trading Bitcoin on a smartphone is learning the lingo.
- Some of the words and abbreviations you will need to know are:
- Block Reward: The number of bitcoins given as a reward for creating a new block; now 12.5 BTC.
- Exchange: Site where users can buy and sell coins.
- Blockchain: A digital ledger that records all transactions made with Bitcoin.
- Hash Rate: How fast your computer can generate hashes; Measured in hashes per second (H/S).
- Mining: Computationally intensive process that can produce more bitcoins or create blocks.
- Wallet: Digital file that stores bitcoins securely.
4. Always look for the “reversal” signal.
If you want to trade Bitcoin on a smartphone, make sure to always look for the reversal signal. Having a strategy is important and will help you anticipate when it’s best to buy or sell.
But as with any tenuous investment market, things can go south in a hurry. One of the most common mistakes traders make is not recognizing an early warning sign that their positions are about to be liquidated. When that happens, it’s often too late for them to take action and avert losses.
A great way to avoid this is by looking for the “reversal signal.” This signal indicates that your position might be liquidated soon if nothing changes — and it can help you stay on top of your game!
5. Always look for the “synthetic” signal.
One of the easiest ways to trade Bitcoin on a smartphone is to find a synthetic signal.
A synthetic signal is when you find an asset that closely mirrors the movement of another. For example, if you see oil prices rise, the value of any commodity or security that relies on oil would likely rise too.
This is because changes in the price of oil will affect the supply and demand for goods that use it as an input. By finding this type of “synthetic” signal, you can generate profits by shorting or long-selling stocks in your portfolio. If you don’t have one, you’ll need to create it by combining two different assets.
Trading Bitcoin on a Smartphone isn’t like trading stocks or other traditional investments. You’ll need a risk appetite, but with the right knowledge, you can be a successful trader. Remember these five tips to get started!