Bitcoin Trading and Types of Trading


Hello guys, Today in this article we will talk about bitcoin trading or Cryptocurrency trading. So let’s start with the term Trading because many people don’t know about trading meaning.

Points of this article are

  • What is bitcoin trading or crypto trading?
  • Types of trading in crypto market
  • Long Term Trading
  • Short Term Trading
  • Future Trading
  • Choose perfect type of trading to do

What is bitcoin trading or crypto trading?

Buy and sell of things at different rates to get profit is known as trading. 

So clearly here all of you comes to know that what is bitcoin trading.

In short Bitcoin trading is just buying or selling bitcoin with another Crypto or in local currency.

There are many types of trading that people do in this field, due to its multiple types people getting confuse that which is better and which is not And which is more profitable.

So here today in this post we will discuss this matter in a more precise way.

Types of trading in crypto market

Before understanding which type of trading is much better, we need to understand the types of trading and that will make us able to understand that how to choose the perfect type of trading.

  1. Long term trading 
  2. Short term trading
  3. Day trading
  4. Future trading 

So now here we will understand all three types step by step.

Long Term Trading

In long term trading, we needed to make a deep analysis about particular numbers of coins and then after the analysis, we get the results that which one is better for investment and after how much time it will give sure profit.

After deep analysis, we have to invest in that coin for the long term. The time period of this type of trading is almost limitless or usually, as per our experience, we can say around one to two years or maybe less.

Short Term Trading

In this type of Trading, we have to make an analysis by taking into consideration the coin’s upcoming projects.

This type of trading can take time around five to six months maximum.

Day Trading

This type of trading needed analysis also but from the point of view of hype and news in the present time, if you will not get profit within 1 to 2 days then you have to quit from that coin with loss and look forward to investment in another coin with new prediction and analysis.

Future Trading

This trading is based on the prediction based idea. In this type of trading, you just need to predict the future price of that particular coin whether it will go up or down and according to that, you will get profit and loss.

Marginal Trading

This trading is not for those guys who are newbies in this field of cryptocurrency. Because Marginal trading requires double-sided talent to make a trade profitable.

In this type of trading, you can borrow a particular amount of crypto assets that you want ( according to the amount of the whole crypto asset in your trading account ) but you need to pay a small 1 to 10 % of borrow amount ( depending upon the demand of borrow and lend asset at the trading website.

Now, you can do trade with this borrow asset, but you need to keep in mind that if you will not be able to make a profit in your trade then you will face double loss because at one side you lost in your trade and at another side, you have to pay the borrowing interest.

Choose perfect type of trading for yourself

Before the choice of the type of trading that suits much better for is depends upon the point that how much fund you have in your pocket to start trading and also how much patience you have in your mind.

  • If you have big patience and low amount to start trading then you should go with long term trading . In long term trading chances of profit remain almost 99% , we needed to hold our investment until the price of the coin get up .
  • If you have less patience then you can go with short term trading . In this type of trading chances of profit remain around 60 to 70% only because if in that interval of months you didn’t get profit then you have to quit and look for the investment in another coin .
  • If you have very less patience and a decent amount of money in your pocket then you can go with day trading . In this type of trading you have 50-50% chance of loss and profit , you can loss and also you can get profit in same probability . All depends upon your sudden analysis before to start the trading at previous day .
  • If you have better understanding to analyse the future price of prediction for price up and down of big coins then you can go with future trading .  This type of trading is not a investment based trading , it is similar to betting type trading . But We don’t recommend any person to go with this type of trading.

In very short

buy and sell of Cryptocurrency at low and high price respectively is known as trading and we can do trading at websites which are more reliable are poloniex , binance.


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