What Is Bitcoin Trading and Why It's risky?

[jamids]

As what you said bitcoin trading is buying low and selling high. About it being risky, when you put your money into something not only in trading but in all investments wherein you give something to gain, there is always risk that you cannot get back the amount you spent but you can minimized the risk by studying it. Knowledge and luck will be your weapon in trading. Knowledge to know whether is it the time to buy or to sell a certain coin according to the current market condition and you need luck also because there are times that an exchange will be hacked like what happen to Bitfinex recently and you can't do something about it because it's a fortuitous event. You are lucky if you don't have bitcoin stored in there during the hacking because you did not lost coins and unlucky for those who have their coins stolen.

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[Pursuer]

What are good sites to get the latest news about Bitcoin and to stay updated on the cryptocurrency market?

there are many places to get the latest news, you can even use google and search for bitcoin news I like coindesk. but most of the news sites are publishing many crappy news that is only click baits and has no value. sometimes they even support something like eth because their interests lie there. so you have to decide which one is valuable and which is crap FUD.

[Dr.Osh]

trading is one method used to find or produce a dollar or bitcoin or money by selling when prices are high and buy when the price falls. or can be said is an investment instrument trading foreign currency trading with other foreign currencies. Advantages derived from changes in the currency exchange rates.

[Oj0]

Hello folks!

I'm thinking about starting to trade with Bitcoin, but I see people saying that It's risky & almost like gambling.

I think that I mis-understand the meaning of trading.

For me trading Is for EXAMPLE, buying Bitcoin when It's at 550$ and selling It when It's at 670$. This Isn't risky because If Its value doesn't Increase, you'll just have to keep It until It gets higher enough, Is this trading?

I would really appreciate If people clarified more! Thankx

All of the online investing is risky gamble like that can win or lose . As trading you can lose if you sold the coins are left to the developers call their dead coins . Many coin are dead now , especially if nrw coins first the price issuper high end prices suddenly fall so losing traders . Compared to gamble? Gambling is too risky than trading because if you lose in gamble its hard to recover the lost . Trading if you lose one try again in another bought and sold coins for a higher pricr up to cover up your first lost.

[iqlimasyadiqa]

bitcoin trading is to sell and buy bitcoin at the right time.

Destination of trading bitcoin is making a profit from the margin between the buy and the sale value of bitcoin.

[jerowacik]

trading is one way to gain an advantage. the advantage gained from the selling of our coins.
we must be smart in choosing the time to sell and buy bitcoin. trading has less risk.

[TommyBitcoin]

With the example u gave , still there is a risk , what if you buy Bitcoin at $550 and 30minutes later it drops to $130? You see there is a risk involved

This is one of the biggest risks.  Because the price of bitcoin is so volatile, the above scenario is possible.  I have bought btc at a price that I thought was really good, and then, before I could resell, the price dropped due to news events like the bitfinex hack.  So, if you are going to buy and resell, you may want to resell quickly to reduce your risks.

Another risk is the scammers out there.  I would first start with trading in person.  I would stay away from reversible payment methods, like paypal. 

And yet another risk is that if your bank suspects that you are trading bitcoin, your account could be shut down.  You will eventually get your money back, but it may be tied up with your bank for weeks, meaning you have to factor in the opportunity costs.

Some exchanges do not like you trading bitcoin on other exchanges!  Childish I know, but I personally know traders who got their itbit account closed because people were reselling on localbitcoins.


 

[vroom vroom]

You bet that bitcoin trading is risky. No one guarantees its value. Only ask and demand does the value. Plus it is new thing, bitcoin users are also sort of labrats.

What if regulators in some main market forbid bitcoin? What if some clearly better alternative shows up? Because one day such thing will most possibly come. What if some hacker does it even worse than with bitfinex? You see, the value could still drop dramatically. Although not likely now or next week, it is always possible. What if some lousy hacker steals your bitcoins too? You can lose all.

So, like gambling, you don't want to invest in bitcoin more than you can afford to lose. With this you have peace in mind, whatever happens.

[TraderETH]

Hello folks!

I'm thinking about starting to trade with Bitcoin, but I see people saying that It's risky & almost like gambling.

I think that I mis-understand the meaning of trading.

For me trading Is for EXAMPLE, buying Bitcoin when It's at 550$ and selling It when It's at 670$. This Isn't risky because If Its value doesn't Increase, you'll just have to keep It until It gets higher enough, Is this trading?

I would really appreciate If people clarified more! Thankx

Yes you are right, that is trading.. but if you have clear rules of trading you never be confuse, everything will become clear when you buy and sell, when you make cut lost and it will not becoming gambling because of you have way for analysis price.

[coinzat]

even the example you gave involves some risk. because when you wait for the price to increase again, nothing is granted. the price may not go up to the buying point again. any kind of trading has risk. without it there is no profit

[mobnepal]

Yes you are correct in some sense like buying low and selling high however in certain situation you should also sell at loss to buy back at more cheaper price like last week we see a big dump after bitfinex release news about hack, at that time we should have sold some at 600$ range and than buy back at 500$ range to get 100$ pure profit buy now on every bitcoin we have purchased.

[pooya87]

For me trading Is for EXAMPLE, buying Bitcoin when It's at 550$ and selling It when It's at 670$. This Isn't risky because If Its value doesn't Increase, you'll just have to keep It until It gets higher enough, Is this trading?

I would really appreciate If people clarified more! Thankx

the risk comes from not knowing the future, and also not knowing everything there is to know. for example you couldn't possibly know that bitfinex is going to be hacked and the panic is this huge driving bitcoin price to $480.
but you can reduce this risk too, but things like "stop loss". you automatically sell if the price goes down and you lose % money.

[Xenophoto]

Bitcoin trading basically is buying at a low price and then selling them in a higher price. It's not that risky if you can wait for months or years or even decades. Bitcoin price grows really really slowly. Some people think the risk is not that much but actually the chances of you losing money is really high. For example, if you bought 5 bitcoins at 600$ and then you needed to get some emergency money but at that time, bitcoins are worth 450$. You just lost 150$ x 5 because of that. So, don't put money in investing bitcoins if you're just going to pull it out early.

[HeroCat]

It is not risky, if you know the Bitcoin market very well. Then you can buy at low and sale at high. The problem is if you buy at low price and price is going down, so you make losses instead of profit. In any case if you know Bitcoin market very well, you can buy at right time. 

[iqlimasyadiqa]

It is not risky, if you know the Bitcoin market very well. Then you can buy at low and sale at high. The problem is if you buy at low price and price is going down, so you make losses instead of profit. In any case if you know Bitcoin market very well, you can buy at right time. 

every action there must be a risk. especially to get the money, we have to capitalize the money to make a profit. trading is a safe investment, but still quite risky. the important thing is we are smart to manage time in the buying and selling bitcoin we have.

[nekochan05]

Hello folks!

I'm thinking about starting to trade with Bitcoin, but I see people saying that It's risky & almost like gambling.

I think that I mis-understand the meaning of trading.

For me trading Is for EXAMPLE, buying Bitcoin when It's at 550$ and selling It when It's at 670$. This Isn't risky because If Its value doesn't Increase, you'll just have to keep It until It gets higher enough, Is this trading?

I would really appreciate If people clarified more! Thankx

yes, you are right! trading bitcoin isn't risky, only need to be patient to hold and know the right time to sell it (so keep follow the new update about bitcoin price on the market)
but if you trading other alt-coins, it will be more risky because another coin is not too popular to stay strong on market, sometime we think it will be great to hold it for long time but in the fact it got pump just a while and then everyone left it (so we got useless alt-coin to hold because low opportunity to get pump again in the future)

[social crypto coin]

All trading is High risk
your trading forex is over high risk is compare bitcoin
you are selling in the market, go to any store, is also equally at risk to suffer losses
because all about trading price is up or down so all trading can get profit or lost

[squatz1]

Could experience a huge drop at any point and lose a ton of cash, but I guess you could also make a good amount!

EH, It's worth a shot.

[SvenBomvolen]

   Trading is risky if you don't know what are you doing. Definition is simple, buy when price is low, sell when price is up. But what if price start to go down after buying? What if you can't sell after buying? What if hackers hack exchange site?
   When there is too many "what if" situation is risky. Many things can go wrong in trading, that is for experienced people with knowledge about economy. It's not easy to predict movement of the market, the ones who knows make profit, others just lose.

[Herbert2020]

Could experience a huge drop at any point and lose a ton of cash, but I guess you could also make a good amount!

EH, It's worth a shot.

for someone who is new to trading and asking a question like OP i suggest them to stay away from coins like ETH because of the huge amount of manipulation these coins have the new traders will only get dumped on.