If you become a professional trader, you can make money by trading, buying and selling bitcoins and looking at it as a profession.
These days, there are very few people in the world Bitcoin He has not heard or even tried to buy Bitcoin. Early 2021 was the name of Bitcoin and others Cryptocurrency I caught and introduced many people in the world to this new technology. You may be one of the millions of people in this field buy bitcoin Do you have an activity or so you speak? merchant You are bitcoin.
If you are only planning to work in this field and do not have any special experience, before you start entering this mysterious world or buying Bitcoin, be sure to follow this article with us to introduce you to terms like who is a trader, how to profit in the emerging markets as well as Make money in bear markets.
Brief Introduction and First Bitcoin Purchase
At first, you might be wondering what is Bitcoin? If we want to define Bitcoin briefly and broadly:
Bitcoin is a cryptocurrency launched in 2009 by an unknown person or group. This person or group known as Satoshi Nakamoto introduced the digital currency Bitcoin to the world with the abbreviation BTC. Satoshi Nakamoto designed Bitcoin with a blockchain-based structure.
It may be interesting to you that the first purchase of Bitcoin was made on June 17, 2010 on the exchange called MT.GOX, during which 20 Bitcoins were purchased for 1 dollar by the user. Therefore, the history of the first Bitcoin purchase goes back 12 years.
In recent years, big exchanges like Binance and Coinbase have been hosting millions of active cryptocurrency traders buying and selling every day.
Learn about the cryptocurrency market
With the invention of Bitcoin, individuals, groups and companies that were active in various areas related to technology decided to create their own networks and software, so to speak, to improve this area and add new features to it.
As more and more blockchain-related applications are created and developed, each of these projects has designed and programmed its own currencies. This allowed the builders of these projects to earn money by selling their currencies and in a way that provided the necessary funding to continue the business.
In the meantime, traders made money by trading these currencies and from the rise and fall of prices. More exchanges have been set up so that people in any part of the world can invest and trade in these currencies without any restrictions.
An interesting feature of the cryptocurrency market is that it is open 24 hours a day without any breaks or closings, unlike all the financial markets in the world such as forex and stock exchange, and investors and traders can work in it every day of the year.
Who is the merchant?
According to the definition of investment, A trader is a person who buys and sells financial assets in any financial market, for himself or on behalf of another person or institution..
The main difference between a trader and an investor is the length of time a person owns and holds the asset or that stake. An investor may hold a currency or an asset for a long period of time, usually more than 3 months. On the other hand, a trader buys and sells a stock or an asset in short periods of time, usually from a few minutes to a few days at most.
You may ask in which method you can earn more profits? In response, we have to say that although an investor may make a few hundred percent profit by buying Bitcoin in a period of one year, for example, a trader can also make a very good profit like an investor who has a large number of transactions during the day and month .
Characteristics of a successful trader
As mentioned according to the definition of a trader, any person who is constantly active in the financial market is known as a trader. But perhaps not everyone who trades in the financial market can be called a successful trader. A successful trader must be profitable in the first place. It means that the percentage of transactions closed with a profit is greater than the transactions with a loss.
To be a successful trader, you must have a proper strategy that is obtained as a result of professional training and trial and error. Otherwise, you will be out of this market much sooner than you think with a huge loss or the loss of your entire capital.
Also, due to the high risks and many volatility present in the cryptocurrency market, it is best to use spot or non-financial transactions only to buy Bitcoin. Then, with the experience you gain, move on to leveraged transactions, futures and profit from the price drop.
Define a two-way market
An attractive advantage of working in the financial and international markets, unlike the Iranian stock market, is the possibility of making profit when the price of the stock or asset rises and when its price falls. You may have heard of the term two-sided market. Yes, in a two-way market, you can make a profit from both sides of the deal, whether the price is up or down. The cryptocurrency market also has the same advantage.
What is the purchase deal?
This type of transaction is quite similar to the stock market transactions in our country. This means that by buying and holding Bitcoin or any other currency, you profit from its higher prices. This type of transaction is called buying or selling in the international and digital currency markets.
What is the sale deal?
If you sell an asset or currency at a higher price or what is called a short sale, you will make a profit by lowering the price of that asset. You may be a bit confused when reading this at first. Let us explain this concept to you with an example.
Let’s say you sell an item to someone for $1000. You receive money from the buyer, then go to the market and buy the goods at a price of $800 and hand it over to the buyer. So in this trade you will make a profit of $200. This is a simple definition of the concept of a sale transaction.
In the cryptocurrency market, in exactly the same way, when you open a sell position, you are actually selling that currency to a buyer at a certain and higher price, and then you buy it at a lower price, and you profit from the difference between the buying and selling prices.
How does a bitcoin trader make a profit?
A bitcoin trader can make a profit by persevering and correctly predicting price behavior by buying and selling bitcoins at the right prices. There are different ways and methods for predicting the price behavior of Bitcoin and other digital currencies. Using such data, following currency news and technical analysis methods like price action can all make you a professional bitcoin trader.
Of course, you do not necessarily have to trade on a daily basis to make a profit, but you can earn dollars by buying bitcoins at the right prices, so to speak, on the support chart, and then increasing the price of bitcoins. Considering the behavior of the bitcoin price and also the high volatility of this digital currency, you can usually earn good profits by waiting a few days for the transaction.
How do traders profit in bear markets?
As we mentioned in the definition of a two-way market, you can make a profit in a bear market by opening a short position and the Bitcoin price goes down.
When Bitcoin hit its historical ceiling around $60,000, many people thought that buying Bitcoin at lower prices like $30,000 and $20,000 would not happen anymore. But only a few months after such an amazing rally, Bitcoin is in a downtrend, and traders who, instead of buying Bitcoin in this bear market, are taking advantage of short or short positions. With the bitcoin price dropping more and more, these traders made more profits and were able to take profits in the bear market.
In this article, we have tried to introduce you to buying Bitcoin, the concept of a trader and how to make profits in financial markets like digital currency. In order to become a professional Bitcoin trader and make profits from the cryptocurrency market even when prices are dropping, you need to get enough training.
These days, trading has become a permanent business for many people, and with a few hours of activity per day at home or workplace, they can earn several times the employee’s salary during the month. Of course, if you enter this field without training, then only failure awaits you. You can also make a profit by buying bitcoins at low prices and then selling them at higher prices.