What Is Bitcoin Trading and Why It's risky?

[JariKriting]

Bitcoin will never be risky once you know how to trade an altcoins.
Before you trade or invest your money in trading, make sure to
seach some videos on how to trade in bitcoin. Its risky when you
dont know nothing in bitcoin trading.Atleast you know the first rule
is buy some cheap coins and sell at a higher price.

bitcoin trading use pair altcoins is high risk but high return
another platform online trading, bitcoin pair fiat money is low risk
this rank risk online trading
1 gold
2 altcoin
3 forex trading
4 bitcoin pair fiat money is low risk

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[acroman08]

Trading is when you buy a altcoin for a low price and sell it  when its price comes up so you will have to keep an eye on the market.

Risks? The most common risk is the altcoins short life span, If you search in google, you will see that most altcoins got dumped in just a short period of time.

The other one is failing to predict the price, example is when a certain altcoins price is getting lower and lower so you sell it all to avoid losing money more, Sometimes the coins price might increase again.

Yep. Mostly because, of the hundreds(if not thousands) of altcoins created, the majority was just for pump and dump and only a select few have managed to stay. Not to mention all the fakes/scams.

Another risk is that when trading altcoins, one would have to be constantly monitoring the market as it's a very volatile one.

As for speculating with bitcoin, it may not be as risky as altcoin trading but is still very stressful. 

[serjent05]

Trading is when you buy a altcoin for a low price and sell it  when its price comes up so you will have to keep an eye on the market.

Risks? The most common risk is the altcoins short life span, If you search in google, you will see that most altcoins got dumped in just a short period of time.

The other one is failing to predict the price, example is when a certain altcoins price is getting lower and lower so you sell it all to avoid losing money more, Sometimes the coins price might increase again.

Yep. Mostly because, of the hundreds(if not thousands) of altcoins created, the majority was just for pump and dump and only a select few have managed to stay. Not to mention all the fakes/scams.

Another risk is that when trading altcoins, one would have to be constantly monitoring the market as it's a very volatile one.

As for speculating with bitcoin, it may not be as risky as altcoin trading but is still very stressful. 

Yes stressful if you are a day trader, but if you are into a long term investment with bitcoin I think you won't have any headache.  With regards to altcoin trading, you need to be clever.  You can participate with pump and dump coins, or  ICO scam coin. Just make sure you exit when a profit is seen.  Don't be greedy and be happy with the possible profit you will have when you exit.  Stay longer holding the coins and you will be bagholding worthless shitcoin.

[wxa7115]

Trading is when you buy a altcoin for a low price and sell it  when its price comes up so you will have to keep an eye on the market.

Risks? The most common risk is the altcoins short life span, If you search in google, you will see that most altcoins got dumped in just a short period of time.

The other one is failing to predict the price, example is when a certain altcoins price is getting lower and lower so you sell it all to avoid losing money more, Sometimes the coins price might increase again.

Yep. Mostly because, of the hundreds(if not thousands) of altcoins created, the majority was just for pump and dump and only a select few have managed to stay. Not to mention all the fakes/scams.

Another risk is that when trading altcoins, one would have to be constantly monitoring the market as it's a very volatile one.

As for speculating with bitcoin, it may not be as risky as altcoin trading but is still very stressful. 

You don't need to monitor the market all the time since you can set stop signals that way if the price losses  lots of value you don't lose all your money and you can use it to secure profits as well.

[Vikingr]

Bitcoin will never be risky once you know how to trade an altcoins.
Before you trade or invest your money in trading, make sure to
seach some videos on how to trade in bitcoin. Its risky when you
dont know nothing in bitcoin trading.Atleast you know the first rule
is buy some cheap coins and sell at a higher price.

bitcoin trading use pair altcoins is high risk but high return
another platform online trading, bitcoin pair fiat money is low risk
this rank risk online trading
1 gold
2 altcoin
3 forex trading
4 bitcoin pair fiat money is low risk

But if a person is doing bitcoin trade with fiat then there is no any risk involve in it as the fiat is a stable currency and bitcoin is an increasing in value currency so there is nothing which will make him lose his money but he will earn with the passage of time if he continue to trade bitcoin and fiat.

[JeffBrad12]

Bitcoin will never be risky once you know how to trade an altcoins.
Before you trade or invest your money in trading, make sure to
seach some videos on how to trade in bitcoin. Its risky when you
dont know nothing in bitcoin trading.Atleast you know the first rule
is buy some cheap coins and sell at a higher price.

bitcoin trading use pair altcoins is high risk but high return
another platform online trading, bitcoin pair fiat money is low risk
this rank risk online trading
1 gold
2 altcoin
3 forex trading
4 bitcoin pair fiat money is low risk

But if a person is doing bitcoin trade with fiat then there is no any risk involve in it as the fiat is a stable currency and bitcoin is an increasing in value currency so there is nothing which will make him lose his money but he will earn with the passage of time if he continue to trade bitcoin and fiat.

Fiat = stable
bitcoin = not involve about the unstable condition?

Even the people were exchanging his fiat to the bitcoin, it mean they put his money on the unstable condition which means the chance of loss was there. Every time is will always there.

[Huge Black Woman]

I see you done probably burned yourself out trading bitcoin.  Ah well, better men have tried and failed.

You know dam well why this stuff is risky.  This ain't like the stock market.  These coins can and do go straight to zZero.  Or at the very least, one satoshi.  Gittin in an' out can be a problem if you sweatin' to death behinds the computer.  I tried it, didn't like it.  Better to play on them dice sites.  Least that way you git some fun outta it.

[Oilacris]

I see you done probably burned yourself out trading bitcoin.  Ah well, better men have tried and failed.

You know dam well why this stuff is risky.  This ain't like the stock market.  These coins can and do go straight to zZero.  Or at the very least, one satoshi.  Gittin in an' out can be a problem if you sweatin' to death behinds the computer.  I tried it, didn't like it.  Better to play on them dice sites.  Least that way you git some fun outta it.

Never compare a gambling game to trading because  they are quiet different on some way even though they are the same on the risk involve of lossing out money. Yes,i admit trading is risky if you dont have enough knowledge and experience and also those fails and mistakes do really happen at first but those are good experience to learn even more on trading thats why we should really start only on small amounts.

[el kaka22]

Never compare a gambling game to trading because  they are quiet different on some way even though they are the same on the risk involve of lossing out money.

Even they are two different extremes, some people are trading just by believing on their luck only. When they just trade only with their luck, we may sometimes need to compare gambling with trading.

Yes,i admit trading is risky if you dont have enough knowledge and experience and also those fails and mistakes do really happen at first but those are good experience to learn even more on trading thats why we should really start only on small amounts.

Even with small capital amount your risks in trading will remain same. The risk levels of trading get diminished only when we are having strong technical analysis. In my opinion, we should not touch trading until we gain enough knowledge on technical analysis.

[rickadone]

Even with small capital amount your risks in trading will remain same. The risk levels of trading get diminished only when we are having strong technical analysis. In my opinion, we should not touch trading until we gain enough knowledge on technical analysis.

Yes that is right, in fact every type of trading is risky, but you have to take that risk as there is no other option, but I think you can minimize your risk in trading if you have some good knowledge about the trading and its required skills. But I believe bitcoin trading is not that risky when we consider about forex trading.

[BlackPanda]

bitcoin trading is entrust the majority of investment you have to buy be some bitcoin, then you sell it back. such that is rotation of bitcoin. while the risk is you will get a reduced amount of bitcoin as a prediction in the buying and selling bitcoin.

[serjent05]

Bitcoin will never be risky once you know how to trade an altcoins.
Before you trade or invest your money in trading, make sure to
seach some videos on how to trade in bitcoin. Its risky when you
dont know nothing in bitcoin trading.Atleast you know the first rule
is buy some cheap coins and sell at a higher price.

bitcoin trading use pair altcoins is high risk but high return
another platform online trading, bitcoin pair fiat money is low risk
this rank risk online trading
1 gold
2 altcoin
3 forex trading
4 bitcoin pair fiat money is low risk

But if a person is doing bitcoin trade with fiat then there is no any risk involve in it as the fiat is a stable currency and bitcoin is an increasing in value currency so there is nothing which will make him lose his money but he will earn with the passage of time if he continue to trade bitcoin and fiat.

Fiat = stable
bitcoin = not involve about the unstable condition?

Even the people were exchanging his fiat to the bitcoin, it mean they put his money on the unstable condition which means the chance of loss was there. Every time is will always there.

I agree that fiat is stable, their decline in value is stable.  This is the reason why people converting their fiat currency to bitcoin.  Bitcoin may have high risk because of its high volatility.  At least they have the chance to earn in bitcoin and increase the value they are holding  than a stable deflationary currency.

[leeloo]

Bitcoin trading is really risky because of volatile price.

Not this again. Volatility DOES NOT equal risk. It's like saying "high temperatures are bad"; well, try to cook a meal in cold water...

Literally every single piece of financial literature on the planet contradicts your statement. Why? Maybe because of the very definition of Volatility which is:

"Volatility is a statistical measure of the dispersion of returns for a given security or market index. Volatility can either be measured by using the standard deviation or variance between returns from that same security or market index. Commonly, the higher the volatility, the riskier the security." http://www.investopedia.com/terms/v/volatility.asp

In other words bitcoin going up and down 10% is somewhat volatile whereas bitcoin rising 1300% in 2013-2014 is very volatile. Trading altcoins in very very volatile. Make sense?

No, it does not make sense. CHF had very low volatility. THB had very low volatility. Please explain to me how they were not risky.

Appeal to authority does NOT prove anything. Investopedia says awesome things about Fibonacci magic as well. I rest my case.

Volatility can't be "measured" unless your distribution is normal (but you won't find that in finance): the sample mean and volatility are useless to estimate population mean and volatility in the presence of fat tails, because you can only see the tip of the iceberg, and you have no way to guess how big is what's unseen. That is, from the sample mean and variance; you can still use MLE to get a guesstimate on the tail exponent, but the margin of error is monstrous, so you can only see that you need to be cautious, not how cautious you need to be.

Basically, standard deviation is a cute concept, but it has no significance to finance, because it applies to more restricted probability distributions than what financial returns follow. You can't even mathematically define the concept of volatility for some parameter ranges of those distributions!

Return distributions aren't stationary, either. Volatility tends to cluster (the volatility of volatility is higher than the volatility), so you're even worse off: if something big happens, chances are something huge (that your clever standard deviation said can't happen in a trillion years!) is about to be happening soon. But I'm not sure why there is still an argument about it after stuff like LTCM and the flash crash and the likes of them.

As for investing. There are some hedge funds with several decades of solid track records that pack so much volatility that you'd run out screaming. Yet they are still around, with awesome compound returns, while those low volatility funds routinely blow up after a couple years. (Yes, LTCM is again a prime example; did I mention it was led by some of the most prominent members of the financial literature you were talking about?) If volatility equals risk, this should be the other way around, correct?

Case closed.

[shamzblueworld]

So the risk is pretty much standard like in all investments or trades.
But I want to know is there a place when you can actually buy/sell bitcoin on time? Like for example what if the price is just right and you want to sell your bitcoin but no one buys from you, does that happen too?
Where do you trade?

[sabbirshm]

trading depends on your skills,experience, market knowledge etc.You also need a bit of luck to be succeeded in trading.And you can't always gain profit from trading, sometimes market price will fall down and you will lose your capital.That's why it's risky.So,we should take that amount of btc to do trading which we can afford to lose.

[d@nte]

bitcoin trading is entrust the majority of investment you have to buy be some bitcoin, then you sell it back. such that is rotation of bitcoin. while the risk is you will get a reduced amount of bitcoin as a prediction in the buying and selling bitcoin.

In essence, that's it, but to give a more complete answer to the OP, we have to say why it is so risky. The risk lies in the fact that the BTC market does not have very high liquidity when compared to the most common currencies. This brings some instability to the market, and it is one of the main causes of high volatility. This problem requires time to be resolved, since it is not yet common to see people buying and selling things using Bitcoin.

[john2231]

bitcoin trading is entrust the majority of investment you have to buy be some bitcoin, then you sell it back. such that is rotation of bitcoin. while the risk is you will get a reduced amount of bitcoin as a prediction in the buying and selling bitcoin.

In essence, that's it, but to give a more complete answer to the OP, we have to say why it is so risky. The risk lies in the fact that the BTC market does not have very high liquidity when compared to the most common currencies. This brings some instability to the market, and it is one of the main causes of high volatility. This problem requires time to be resolved, since it is not yet common to see people buying and selling things using Bitcoin.

bitcoin trading for me it is not so risky compare to gambling casino it is less risk than gambling you can get more profit in trading with less risk unlike in gambling high risk low profit.. because of ods,. and if you lose you can not recover back some of your loses.,, unlike in trading that if you lose only the price and patience is your lose..

[skyway1]

trading depends on your skills,experience, market knowledge etc.You also need a bit of luck to be succeeded in trading.And you can't always gain profit from trading, sometimes market price will fall down and you will lose your capital.That's why it's risky.So,we should take that amount of btc to do trading which we can afford to lose.

i agree with you that trading is depend on skill and if you are expert in trading then we can be get a good profit from trading and there is many expert traders and they earning bitcoin in huge amount through trading without risks because they have a good knowledge about trading and the are expert in trading.

[Victorycoin]

trading depends on your skills,experience, market knowledge etc.You also need a bit of luck to be succeeded in trading.And you can't always gain profit from trading, sometimes market price will fall down and you will lose your capital.That's why it's risky.So,we should take that amount of btc to do trading which we can afford to lose.

i agree with you that trading is depend on skill and if you are expert in trading then we can be get a good profit from trading and there is many expert traders and they earning bitcoin in huge amount through trading without risks because they have a good knowledge about trading and the are expert in trading.

There are no risk free way of trading and making profit, experience and skill only gives a trader the edge to a vintage point to approach the market. let no one be deceived by all those claiming to be professional traders and making consistent profit in the market, because if they really do, they won't be looking for avenue to sell signals.

To become a successful trader, one has to go through the process of understanding what the market is saying at any point in time and not depend on others suggestions.

[X-ray]

bitcoin trading is entrust the majority of investment you have to buy be some bitcoin, then you sell it back. such that is rotation of bitcoin. while the risk is you will get a reduced amount of bitcoin as a prediction in the buying and selling bitcoin.

In essence, that's it, but to give a more complete answer to the OP, we have to say why it is so risky. The risk lies in the fact that the BTC market does not have very high liquidity when compared to the most common currencies. This brings some instability to the market, and it is one of the main causes of high volatility. This problem requires time to be resolved, since it is not yet common to see people buying and selling things using Bitcoin.

Didn't think this problem could be resolved because bitcoin is not owned by organizations or countries so it will always depend on market's demand and that's why the volatility will always remains there even it have enough liquidity compared to another currencies, bitcoin will be always like this.