Since its introduction to the public last 2008, Bitcoin (BTC) has undoubtedly risen to become the leading cryptocurrency today. The electronic cash system is decentralized, which means there isn’t a single entity that controls it. Instead, it works by peer-to-peer transactions, which are processed and verified by miners in the blockchain.
As the first of its kind, BTC has positioned itself as the leading cryptocurrency of the future. While the value of emerging altcoins such as Ethereum, Litecoin, and Dash are slowly gaining traction, they still can’t beat Bitcoin’s record as of the moment. This is the reason why many people are starting to notice the crypto and are looking at ways to earn more of this digital asset.
Earn Bitcoin through Trading
Initially, you only acquire Bitcoins through mining. The process entails having your computer solve complex mathematical problems to process and verify the transactions, which are then recorded in a public ledger for everyone to see.
As more and more people see the benefits of Bitcoin, though, a lot of avenues to earn BTC have been developed. One of the most straightforward ways to acquire this digital asset is by trading. With this process, you join an online exchange that allows you to deposit fiat or real money in your e-wallet. The website then gives you the equivalent Bitcoin amount, which you can grow by trading.
It works similarly with traditional stock exchanges. You buy when the price is low then sell at the optimal time when the value is high. Afterward, you repeat the cycle until you’ve achieved your trading goals or have created new ones.
Automated Trading through Bitcoin Compass
The process has also become even more manageable for beginners and novice traders through automated trading. Companies such as Bitcoin Compass have developed software that allows users to configure the settings according to their target amount. The trading robot will then be the one to buy and sell at the most favorable times based on your goals.
If you’re thinking about trying your hand at Bitcoin trading, here are some things you should know about Bitcoin Compass and how automated trading can help you with this venture:
- Process and Translate Big Data Instantaneously
The primary advantage of automated trading robots like Bitcoin Compass is that they provide you with understandable charts and graphs to help you make fact-based decisions. The cryptocurrency is volatile, which means that there are frequent price movements. This characteristic can be daunting, especially for trading newbies.
This platform deciphers all the data for you, such as the possible causes for the fluctuations as well as their repercussions in the future. The robot then presents it to you through an easily-digestible format so that you can study the market trends with ease. This eliminates emotional trading since you can look at the market objectively with the accurate data given to you.
These are the Bitcoin trading terms you should be aware of:
- Order Book – The market’s order book is where all bids and asks are recorded. It’s viewable through the trading platform. Bids pertain to buy orders since people are bidding to purchase Bitcoins while asks refer to the asking price requested by the seller.
- Price – Unlike fiat money, you can’t find a standardized BTC value. Thus, the “price” being referred to is the cost of the last trade done on the trading platform. Near the amount, there’s often the word high or low. This talks about Bitcoin’s highest and lowest value in the last 24 hours.
- Volume – This term stands for the total number of Bitcoins that have been traded in a particular period. It’s typically used to determine the significance of a trend. Large trading volumes are deemed as positive, while weak ones are characterized by low volumes.
- Market Order – It’s an order type where you set the amount of BTC you want to bid or ask. The platform then executes your request by matching buyers or sellers to fulfill your order.
- Limit Order – This type enables you to buy or sell Bitcoin at the exact price you set. Its main difference between the market order is that it strictly depends on your preferences, instead of bending over to the buyer or seller’s availability when needed, like the latter.
- Stop-Loss Order – Based on the name, this order type is ideal as a safeguard against losses. With this, you determine the specific price that you want to sell in the future in case BTC’s value plummets significantly. It acts like a market order except that it tells the trading robot to sell your digital assets at the preset price if its value drops to a particular percentage or point to prevent losing a considerable sum.
- Monitor the Market in Real-Time
Another significant benefit of automated trading tools is that you can configure the settings then leave the robot to do its job. These digital traders don’t need to go on breaks to eat their meals or sleep. They can monitor the market, spot trends, and trade 24 hours a day, seven days a week to aid you in meeting your cryptocurrency trading goals.
- Quick Response to Trading Opportunities
Because they can monitor the market unceasingly, these automated trading robots will also be the first to take advantage of trading opportunities when they arrive. They can make sure that you buy and sell Bitcoins during optimal times for higher profits.
- Enable Backtesting Strategies
Backtesting is the process where you evaluate the viability and effectiveness of a trading strategy by finding out how it performs using historical data. The premise is that if it works with the previous trends, then the techniques and tactics will most likely succeed for future trading transactions.
Conclusion
Bitcoin Compass has allowed beginner and novice traders to acquire more of this electronic cash. The automated trading platform allows you to get a holistic grasp of the market trends through the data it presents, which can help you make fact-based trading decisions.
This tool also monitors the market consistently on your behalf, which enables them to respond to optimal trading opportunities. Plus, you get to backtest strategies because of all the data it collects.
Disclosure/Disclaimer: This article is paid for and produced by a third-party source and should not be viewed as an endorsement by ZyCrypto. Readers are urged to do their own research before investing or having anything to do with the company, goods and/or services mentioned in the above article.
