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A beginner's guide to Bitcoin trading
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<blockquote data-quote="Greenhost" data-source="post: 669" data-attributes="member: 20"><p><strong>Bitcoin Price</strong></p><p><strong>When people talk about the “price” of Bitcoin, they are really referring to the price of the last trade made on a particular trading platform. This important difference occurs because, unlike, for example, US dollars, there is no single global price for bitcoin that everyone follows.</strong></p><p><strong>For example, the price of bitcoin in some countries may differ from its price in the US, as the major exchanges in those countries involve different transactions.</strong></p><p><strong>Note. Sometimes the terms “high” and “low” are also found next to the price. These conditions refer to the highest and lowest bitcoin price in the last 24 hours.</strong></p><p><strong></strong></p><p><strong>Volume</strong></p><p><strong>Volume refers to the total number of bitcoins that have been sold over a given period of time. Volume is used by traders to determine the significance of a trend; significant trends are usually accompanied by high trading volumes, while weak trends are accompanied by low volumes.</strong></p><p><strong>For example, a healthy uptrend will be accompanied by high volumes when the price rises and low volumes when the price is declining.</strong></p><p><strong>If you see a sudden change in price direction, experts recommend checking how significant the trading volume is to determine if it is a minor correction or the beginning of an opposite trend.</strong></p><p><strong></strong></p><p><strong><img src="https://carders.biz/attachments/1619944739050-png.1127/" alt="1619944739050.png" class="fr-fic fr-dii fr-draggable " style="" /></strong></p><p><strong></strong></p><p><strong></strong></p><p><strong>Market (or Instant) Order</strong></p><p><strong>This type of order can be placed on the trading platform and will be instantly executed at any possible price. You only set the amount of bitcoins you want to buy or sell and order the exchange to execute immediately. The trading platform then matches sellers or buyers to respectfully fulfill your order.</strong></p><p><strong>Once your order has been placed, chances are high that your order will not be completed by one buyer or seller, but by several people at different prices.</strong></p><p><strong>For example, let's say you placed a market order to buy five bitcoins. The trading platform is now looking for the cheapest sellers.</strong></p><p><strong>The order will be executed when it has accumulated enough sellers to transfer five bitcoins. Depending on the availability of sellers, you might end up buying three bitcoins at one price and two others at a higher price.</strong></p><p><strong>In other words, in a market order, you don't stop buying or selling bitcoins until the requested amount is reached. With market orders, you may end up paying more or selling less than you planned, so be careful.</strong></p><p><strong></strong></p><p><strong>Limit Order</strong></p><p><strong>It allows you to buy or sell Bitcoins at a specific price that you choose. In other words, the order may not be fully completed as there are not enough buyers or sellers to meet your requirements.</strong></p><p><strong>Let's say you place a limit order to buy five bitcoins at $ 10,000 per coin. Then you could only get 4 bitcoins because there were no other sellers willing to sell you the last bitcoin at $ 10,000. The remaining order for 1 bitcoin will remain there until the price reaches $ 10,000 again, and then the order is executed.</strong></p><p><strong></strong></p><p><strong>Stop Loss</strong></p><p><strong>Allows you to set a specific price at which you want to sell in the future if the price drops sharply. This type of order is useful for minimizing losses.</strong></p><p><strong>Basically, this is an order that tells the trading platform that if the price drops by a certain percentage or to a certain level, I will sell my bitcoins at a predetermined price, so I will lose as little money as possible. A stop loss order acts like a market order.</strong></p><p><strong>In other words, as soon as the stop price is reached, the market will start selling your coins at any price until the order is executed.</strong></p><p><strong></strong></p><p><strong>Maker and Taker Fees</strong></p><p><strong>Other conditions you may encounter when trading are maker and taker fees. Personally, I still find this model one of the most confusing, but let's try to figure it out.</strong></p><p><strong>Exchanges want to get people to trade. In other words, they want to "create a market." Hence, whenever you create a new order that cannot be matched to any existing buyer or seller, i.e. a limit order, you are basically a market maker and you will generally have lower commissions.</strong></p><p><strong>Meanwhile, the market maker places orders that are instantaneous, that is, market orders, since the market maker already exists to satisfy their requests. Takers remove business from the exchange, so they usually have higher commissions than makers who add orders to the exchange's order book.</strong></p><p><strong>For example, perhaps you have placed a limit order to buy one bitcoin at $ 10,000 (maximum), but the cheapest seller is only willing to sell at $ 11,000. So you've just created a new marketplace for sellers looking to sell at $ 10,000.</strong></p><p><strong>Therefore, whenever you place an order to buy below the market price or an order to sell above the market price, you become a market maker.</strong></p><p><strong>Using the same example, perhaps you place a limit order to buy one bitcoin at $ 12,000 (maximum), and the cheapest seller sells one bitcoin at $ 11,000. Then your order will be executed instantly. You will be deleting orders from the exchange order book, so you are considered a market taker.</strong></p><p><strong></strong></p><p><strong>5. Reading price charts</strong></p><p><strong>Now that you are familiar with the basic trading terms, it's time to make a quick introduction to reading price charts.</strong></p><p><strong></strong></p><p><strong>Japanese candlesticks</strong></p><p><strong>Japanese candlesticks are a very widely used type of price chart based on the ancient Japanese technique of technical analysis that was used in rice trading in the 1600s.</strong></p><p><strong>Each "candlestick" represents the open, low, high, and close prices for a given period of time. In this regard, Japanese candlesticks are sometimes called the OHLC chart (open, high, low, close).</strong></p><p><strong>Depending on whether the candlestick is green or red, you can tell whether the timeframe's closing price was higher or lower than the opening price.</strong></p><p><strong>If the candlestick is green, it means that the opening price was lower than the closing price, so during this period the price as a whole rallied. On the other hand, if the candlestick is red, it means that the opening price was higher than the closing price, so the price went down.</strong></p><p><strong><img src="https://carders.biz/attachments/1619944773032-png.1128/" alt="1619944773032.png" class="fr-fic fr-dii fr-draggable " style="" /></strong></p><p><strong>Trading candles</strong></p><p><strong></strong></p><p><strong>In the image above, the open price of a green candle is the wide bottom of the candle, the close is the wide top of the candle, and the highest and lowest trades in that timeframe are at both ends of the candle. ...</strong></p><p><strong>When we are in a bull market, most of the candles are usually green. If it is a bear market, most of the candles will be red.</strong></p><p><strong></strong></p><p><strong>Bull and Bear Markets</strong></p><p><strong>These terms are used to refer to the general trend of a chart, whether it is going up or down. They are named after these animals because of the way they attack their opponents.</strong></p><p><strong>The bull raises the horns up, and the bear lowers the paws down. So these animals are metaphors for market movement: if the trend is up, it's a bull market. But if the trend is downtrend, it is a bear market.</strong></p><p><strong></strong></p><p><strong>Support and resistance levels</strong></p><p><strong>Often times, looking at market charts like OHCL, it can seem like the price of Bitcoin is unable to break through certain highs or lows. For example, you might witness the Bitcoin price go up to $ 10,000 and then seem to hit a virtual ceiling and get stuck at that price for a while without breaking it.</strong></p><p><strong>In this scenario, $ 10,000 is the resistance level - a high price that Bitcoin is struggling to surpass. The resistance level is the result of many sell orders being executed at this price. This is why the price cannot break through at this particular moment.</strong></p><p><strong>Support levels are, in a sense, a mirror image of resistance levels. They look like "floor". Bitcoin's price doesn't seem to go lower when the price falls. The support level will be followed by many buy orders set at the level price. Strong buyer's demand at the support level softens the downtrend.</strong></p><p><strong>Historically, the more often the price cannot go beyond the support or resistance levels, the stronger these levels are considered.</strong></p><p><strong>Interestingly, both resistance and support levels are usually set around round numbers like 10,000, 15,000, etc. The reason for this is that many inexperienced traders tend to execute buy or sell orders at round prices. which makes them act as strong price barriers.</strong></p><p><strong>Psychology also contributes greatly to the determination of support and resistance levels. For example, until 2017 it seemed expensive to pay $ 1,000 for Bitcoin, so there was a strong resistance level at $ 1,000. Once this level was broken, a new level of psychological resistance was created: $ 10,000.</strong></p><p><strong></strong></p><p><strong>6. Common Trading Mistakes</strong></p><p><strong>Great, you've come this far and by now you should have enough know-how to gain some practical experience. However, it is important to remember that trading is a risky business and mistakes cost money.</strong></p><p><strong>Let's take a look at the most common mistakes people make when they start trading, in the hope that you can avoid them.</strong></p><p><strong></strong></p><p><strong>Mistake # 1 - Risking More Than You Can Afford to Lose</strong></p><p><strong>The biggest mistake you can make is risking more money than you can afford to lose. Pay attention to the quantity that is convenient for you. Here's the worst-case scenario: you end up losing everything. If you find yourself trading above this amount, stop. You are doing it wrong.</strong></p><p><strong>Trading is a very risky business. If you invest more money than you are comfortable with, it will affect your trading and may lead to poor decisions.</strong></p><p><strong></strong></p><p><strong>Mistake # 2 - Not having a plan</strong></p><p><strong>Another mistake that people who start trading make is not having a clear enough plan of action. In other words, they don't know why they are entering a particular trade, and more importantly, when they should exit that trade. Therefore, clear profit targets and stop losses must be determined prior to trading.</strong></p><p><strong></strong></p><p><strong></strong></p></blockquote><p></p>
[QUOTE="Greenhost, post: 669, member: 20"] [B]Bitcoin Price When people talk about the “price” of Bitcoin, they are really referring to the price of the last trade made on a particular trading platform. This important difference occurs because, unlike, for example, US dollars, there is no single global price for bitcoin that everyone follows. For example, the price of bitcoin in some countries may differ from its price in the US, as the major exchanges in those countries involve different transactions. Note. Sometimes the terms “high” and “low” are also found next to the price. These conditions refer to the highest and lowest bitcoin price in the last 24 hours. Volume Volume refers to the total number of bitcoins that have been sold over a given period of time. Volume is used by traders to determine the significance of a trend; significant trends are usually accompanied by high trading volumes, while weak trends are accompanied by low volumes. For example, a healthy uptrend will be accompanied by high volumes when the price rises and low volumes when the price is declining. If you see a sudden change in price direction, experts recommend checking how significant the trading volume is to determine if it is a minor correction or the beginning of an opposite trend. [IMG alt="1619944739050.png"]https://carders.biz/attachments/1619944739050-png.1127/[/IMG] Market (or Instant) Order This type of order can be placed on the trading platform and will be instantly executed at any possible price. You only set the amount of bitcoins you want to buy or sell and order the exchange to execute immediately. The trading platform then matches sellers or buyers to respectfully fulfill your order. Once your order has been placed, chances are high that your order will not be completed by one buyer or seller, but by several people at different prices. For example, let's say you placed a market order to buy five bitcoins. The trading platform is now looking for the cheapest sellers. The order will be executed when it has accumulated enough sellers to transfer five bitcoins. Depending on the availability of sellers, you might end up buying three bitcoins at one price and two others at a higher price. In other words, in a market order, you don't stop buying or selling bitcoins until the requested amount is reached. With market orders, you may end up paying more or selling less than you planned, so be careful. Limit Order It allows you to buy or sell Bitcoins at a specific price that you choose. In other words, the order may not be fully completed as there are not enough buyers or sellers to meet your requirements. Let's say you place a limit order to buy five bitcoins at $ 10,000 per coin. Then you could only get 4 bitcoins because there were no other sellers willing to sell you the last bitcoin at $ 10,000. The remaining order for 1 bitcoin will remain there until the price reaches $ 10,000 again, and then the order is executed. Stop Loss Allows you to set a specific price at which you want to sell in the future if the price drops sharply. This type of order is useful for minimizing losses. Basically, this is an order that tells the trading platform that if the price drops by a certain percentage or to a certain level, I will sell my bitcoins at a predetermined price, so I will lose as little money as possible. A stop loss order acts like a market order. In other words, as soon as the stop price is reached, the market will start selling your coins at any price until the order is executed. Maker and Taker Fees Other conditions you may encounter when trading are maker and taker fees. Personally, I still find this model one of the most confusing, but let's try to figure it out. Exchanges want to get people to trade. In other words, they want to "create a market." Hence, whenever you create a new order that cannot be matched to any existing buyer or seller, i.e. a limit order, you are basically a market maker and you will generally have lower commissions. Meanwhile, the market maker places orders that are instantaneous, that is, market orders, since the market maker already exists to satisfy their requests. Takers remove business from the exchange, so they usually have higher commissions than makers who add orders to the exchange's order book. For example, perhaps you have placed a limit order to buy one bitcoin at $ 10,000 (maximum), but the cheapest seller is only willing to sell at $ 11,000. So you've just created a new marketplace for sellers looking to sell at $ 10,000. Therefore, whenever you place an order to buy below the market price or an order to sell above the market price, you become a market maker. Using the same example, perhaps you place a limit order to buy one bitcoin at $ 12,000 (maximum), and the cheapest seller sells one bitcoin at $ 11,000. Then your order will be executed instantly. You will be deleting orders from the exchange order book, so you are considered a market taker. 5. Reading price charts Now that you are familiar with the basic trading terms, it's time to make a quick introduction to reading price charts. Japanese candlesticks Japanese candlesticks are a very widely used type of price chart based on the ancient Japanese technique of technical analysis that was used in rice trading in the 1600s. Each "candlestick" represents the open, low, high, and close prices for a given period of time. In this regard, Japanese candlesticks are sometimes called the OHLC chart (open, high, low, close). Depending on whether the candlestick is green or red, you can tell whether the timeframe's closing price was higher or lower than the opening price. If the candlestick is green, it means that the opening price was lower than the closing price, so during this period the price as a whole rallied. On the other hand, if the candlestick is red, it means that the opening price was higher than the closing price, so the price went down. [IMG alt="1619944773032.png"]https://carders.biz/attachments/1619944773032-png.1128/[/IMG] Trading candles In the image above, the open price of a green candle is the wide bottom of the candle, the close is the wide top of the candle, and the highest and lowest trades in that timeframe are at both ends of the candle. ... When we are in a bull market, most of the candles are usually green. If it is a bear market, most of the candles will be red. Bull and Bear Markets These terms are used to refer to the general trend of a chart, whether it is going up or down. They are named after these animals because of the way they attack their opponents. The bull raises the horns up, and the bear lowers the paws down. So these animals are metaphors for market movement: if the trend is up, it's a bull market. But if the trend is downtrend, it is a bear market. Support and resistance levels Often times, looking at market charts like OHCL, it can seem like the price of Bitcoin is unable to break through certain highs or lows. For example, you might witness the Bitcoin price go up to $ 10,000 and then seem to hit a virtual ceiling and get stuck at that price for a while without breaking it. In this scenario, $ 10,000 is the resistance level - a high price that Bitcoin is struggling to surpass. The resistance level is the result of many sell orders being executed at this price. This is why the price cannot break through at this particular moment. Support levels are, in a sense, a mirror image of resistance levels. They look like "floor". Bitcoin's price doesn't seem to go lower when the price falls. The support level will be followed by many buy orders set at the level price. Strong buyer's demand at the support level softens the downtrend. Historically, the more often the price cannot go beyond the support or resistance levels, the stronger these levels are considered. Interestingly, both resistance and support levels are usually set around round numbers like 10,000, 15,000, etc. The reason for this is that many inexperienced traders tend to execute buy or sell orders at round prices. which makes them act as strong price barriers. Psychology also contributes greatly to the determination of support and resistance levels. For example, until 2017 it seemed expensive to pay $ 1,000 for Bitcoin, so there was a strong resistance level at $ 1,000. Once this level was broken, a new level of psychological resistance was created: $ 10,000. 6. Common Trading Mistakes Great, you've come this far and by now you should have enough know-how to gain some practical experience. However, it is important to remember that trading is a risky business and mistakes cost money. Let's take a look at the most common mistakes people make when they start trading, in the hope that you can avoid them. Mistake # 1 - Risking More Than You Can Afford to Lose The biggest mistake you can make is risking more money than you can afford to lose. Pay attention to the quantity that is convenient for you. Here's the worst-case scenario: you end up losing everything. If you find yourself trading above this amount, stop. You are doing it wrong. Trading is a very risky business. If you invest more money than you are comfortable with, it will affect your trading and may lead to poor decisions. Mistake # 2 - Not having a plan Another mistake that people who start trading make is not having a clear enough plan of action. In other words, they don't know why they are entering a particular trade, and more importantly, when they should exit that trade. Therefore, clear profit targets and stop losses must be determined prior to trading. [/B] [/QUOTE]
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A beginner's guide to Bitcoin trading
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