How Do You Trade BTCUSD

When trading Bitcoin online, a trader can either buy or sell Bitcoin contracts to generate profits.

You may choose to buy Bitcoin if you believe its value will rise against the US Dollar, or sell it if you anticipate the price will fall in comparison to the US Dollar.

Buy Trade - Go Long

When the Bitcoin prices are heading up, then traders will buy Bitcoin. This also is known as going long. Going long is another name for buying.

Trade Crypto Basics - Bitcoin Buy Example - Bitcoin Sell Example - Long Buy vs Short Sell on Bitcoin

Buy Trade - Going Long - Bitcoin Trading

In the trade shown, Bitcoin prices rise so a trader buys. This means going long. Hold the buy as prices keep climbing up.

The price of Bitcoin will continue moving upwards as long as both MAs are pointing upwards. The two moving averages are used to show and display the direction of prices - what is commonly referred to as the market trend. The method of using of two moving averages is known as Moving Average crossover strategy. A shorter moving average and a longer moving average for example the 5 period moving average MA and 7 period moving averages are used together to come up with the above MA cross over strategy of determining the general direction of Bitcoin prices. At any one time these moving averages will either be moving in an upward direction or a downwards direction - at other times when the market prices are consolidating, the moving averages will move sideways showing that prices are neither moving upward or downward.

Sell Trade - Go Short

When Bitcoin prices decline, traders are likely to sell Bitcoin, which is commonly referred to as going short, another term for selling.

How to Buy Bitcoin in Trades? - Bitcoin Sell Trade Guide - BTCUSD Buy and Sell Examples with Tutorial

Sell Trade - Going Short - Bitcoin Trading

In the above trade, the Bitcoin prices are moving downwards as is illustrated by the 2 MAs which are both heading downwards. A trader would open a sell trade and this is known as going short. The trader will then keep their short trade open as long as the prices continue moving downward.

Bitcoin Crypto Currency Charts

Now that you know when it's good to buy and sell Bitcoin, the question is how to sell or where to place the buy or sell trade.

To do this a trader will use the Bitcoin charts provided. A Bitcoin Currency chart will represent the movement of Bitcoin prices and draw this using a graphical format which can be used by technical traders to analyze and interpret the Bitcoin price movement.

Bitcoin Chart Basics with Live Examples - Trading Bitcoin Charts Step by Step

BTCUSD Price Chart

The hour-long Bitcoin trading chart displayed above illustrates the price ascent of Bitcoin, moving from a value of $3584.416 per unit to $4253.647 per unit throughout the month of September in 2017.

The vertical axis represents price, marked with price gradations, while the horizontal axis shows the date and time indications.

The price of Bitcoin and its fluctuations are depicted in a chart format. The chart illustrates an upward trend in price. Traders engaged in Bitcoin trading will assess this price movement to determine the appropriate trading direction. In the aforementioned chart example, as prices are trending upwards, a btcusd trader would opt to purchase Bitcoin and take a long position.

A trader can execute a purchase or sell order directly from the graphical representation. A right-click anywhere on the chart will bring up a context menu, from which the online trader can select the option to "open a new trade order" and initiate a new Bitcoin transaction.

Calculating Profit

When trading BTCUSD, profit is calculated using the price movement - the difference between where a btc usd trader opens a trade and where they close out the trade will be used in calculating the profit.

Using the preceding illustration where Bitcoin prices increased from $3584.416 per coin to $4253.647, if a trader initiated a buy transaction at $3584.416 per Bitcoin contract and exited at $4253.647 per Bitcoin contract, the resulting price disparity would be $669.231.

Because Bitcoin is traded in amounts of 1 Bitcoin, trading one Bitcoin means that the trader would have made $669.231 for that one move, and if they traded 10 Bitcoins, they would have made $6,692.31.

To trade 10 Bitcoin lots, you won't need the full amount of $42,536.47 thanks to leverage provided by your online Bitcoin broker at 5:1. This means you'd only require one-fifth of that total, which comes to approximately $8,507.29. Thus, with $8,507.29 in your account, you can open and trade 10 Bitcoin contracts.

For example, if a trader purchased 1 Bitcoin at $3584.416 and sold it at $4253.647, the price difference would be $669.231. Trading 1 Bitcoin contract under these conditions would yield a profit of $669.231 from this transaction.

To purchase one lot of Bitcoin, which costs $4253.647, a trader must possess $4253.647. Because many regular traders cannot afford that much money, Bitcoin brokers offer leverage, enabling traders to use borrowed funds for trading. With a standard leverage of 5:1, traders are able to borrow five times the amount of their starting funds. As a result, a trader is only required to deposit $850.729 to trade one lot of Bitcoin. Thus, they can begin one lot of BTCUSD because the $850.729, when multiplied by 5:1, gives them control over $4253.647.

BTC USD Crypto Software/Platform

The BTC/USD Crypto price charts can be accessed from the BTC/USD Crypto platform provided by online Bitcoin brokers - BTCUSD cryptocurrency BTCUSD is now provided for by the traditional Forex currency trading brokers & BTCUSD can now be traded alongside traditional currencies such as EURUSD and GBPUSD. The software is the software which traders will use to connect to their brokers & place trades in the BTCUSD market - The platform used to trade Forex Currencies is the same platform that will be used to trade cryptocurrencies such as Bitcoin BTCUSD.

The platform used is MT5 platform software, The platform will draw the price charts for the trader. The platform also will calculate the profit and losses from the trades opened by the online trader & the trader does not need to calculate trading profits, the profits are calculated automatically/mechanically.

The platform can be downloaded from the Bitcoin broker's website and beginner traders can learn how to use this software using a practice demo account.

Practice Demo Account

A demo account lets traders practice Bitcoin trading on the platform. Learn to open and close trades with fake money. No real cash at risk. Use virtual funds until you get the hang of it. When ready to profit, switch to a real account for live Bitcoin trades.

Live Bitcoin Account

The live Bitcoin account lets traders trade Bitcoin online. Use real money on this account. Deposit funds first. Then place Bitcoin trades through it. Profits or losses will show in this account.

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