What Is Bitcoin Trading and Why It's risky?

[upsidedown75]

I am also feeling like the market cap is increased too much so that none of the whale is able to manipulate the market price but still if some whales collectively want to manipulate the price then they may do as they will need to buy some bitcoins at lower price.

The market capt doesn't mean anything when it comes to whales being able to manipulate the price. Important to know is that the things that greatly influence the price are the exchange from where the whale wants to manipulate the market from, and the number of available (tradable) coins in the market (specifically in the exchange the whale operates from). The market cap of Bitcoin is a combined number of every coin in existence. At this point I don't even think 20% of the total number of produced coins are circulating in the market. Says enough.

Yes there are whales but till date today I haven't seen a single person or a group of people manipulating the price of bitcoins. See the cap is too big for a group of people to cover, yeah if some big companies/industries collaborate and make the market swing I can understand but that wont effect the market by much too.

I would agree when the price for bitcoins was 100$ but now it is $1000+ mate and you know how difficult it is to manipulate a btc market alone.

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[richardsNY]

The market cap is very easily manipulated because it doesn't relate to the actual liquidity of an exchange.  People on an exchange can often change the market cap of a coin with just a few Bitcoin, sometimes even less, and the price changes very dramatically.  Even Bitcoin exchanges have insanely low liquidity right now.

Bitcoin exchanges have always had a very poor level of liquidity. In order for a whale to cash out a few thousand coins, depending on the exchange, he is likely able to push the price 10-20% downwards in one single dump. And then I am not even talking about the effect of stop loss orders that might get triggered, which will result in the price to tank even further. So yes, it takes little (in relative terms) to get the price to tank heavily.

Yes there are whales but till date today I haven't seen a single person or a group of people manipulating the price of bitcoins. See the cap is too big for a group of people to cover, yeah if some big companies/industries collaborate and make the market swing I can understand but that wont effect the market by much too.

I would agree when the price for bitcoins was 100$ but now it is $1000+ mate and you know how difficult it is to manipulate a btc market alone.

I think you didn't understand anything of my post, plus you lack the understanding of how the Bitcoin market and everything around it works.

[virtualkeybuyer]

Trading in bitcoins is just  a pretty simple logic term.Trading is buying some thing or another coin from a low price you can get and then selling the coisn for profit big or small i doesnt matter as long as you are harvesting profit through it.Just like industry of buying and selling in the real world

No it is not that much simple which you wrote there but in trade there need a lot of knowledge and have to learn a number of strategies and have to make yourself well informed about any coin in the market and about the price of bitcoin all the time.

[rickadone]

Trading in bitcoins is just  a pretty simple logic term.Trading is buying some thing or another coin from a low price you can get and then selling the coisn for profit big or small i doesnt matter as long as you are harvesting profit through it.Just like industry of buying and selling in the real world

You are quite right there but you forgot to mention the risks as asked, I would highlight them.
Basically when you buy bitcoins for a cheap price then you obviously waits for the higher price,now what happens sometimes is that the price just gets lower and lower, though it would climb back soon we all know and trust but a panic occurs in us because the price is getting lower.

The risk is exactly there, you usually dump your coins that time and regret later when it climbs back.

[kobe24]

Trading in bitcoins is just  a pretty simple logic term.Trading is buying some thing or another coin from a low price you can get and then selling the coisn for profit big or small i doesnt matter as long as you are harvesting profit through it.Just like industry of buying and selling in the real world

No its not that simple because if you dont have a wide knowledge in trading you cannot make money on it. Trading is not buy low and sell high even the expert sometimes can lose

[moviebuff777]

Trading in bitcoins is just  a pretty simple logic term.Trading is buying some thing or another coin from a low price you can get and then selling the coisn for profit big or small i doesnt matter as long as you are harvesting profit through it.Just like industry of buying and selling in the real world

You are quite right there but you forgot to mention the risks as asked, I would highlight them.
Basically when you buy bitcoins for a cheap price then you obviously waits for the higher price,now what happens sometimes is that the price just gets lower and lower, though it would climb back soon we all know and trust but a panic occurs in us because the price is getting lower.

The risk is exactly there, you usually dump your coins that time and regret later when it climbs back.

For investing or trading, there is also a risk that bitcoin will not last long term and that you will lose money. So there is a risk in just putting money into bitcoin.

There's also a big risk with theses cyrypotcurrency exchanges. They could go out of business or steal our money. It happened with mtgox and a few others. So there are some built in risks with trading or even owning bitcoins or altcoins.

[KingdomHearts]

Trading in bitcoins is just  a pretty simple logic term.Trading is buying some thing or another coin from a low price you can get and then selling the coisn for profit big or small i doesnt matter as long as you are harvesting profit through it.Just like industry of buying and selling in the real world

No its not that simple because if you dont have a wide knowledge in trading you cannot make money on it. Trading is not buy low and sell high even the expert sometimes can lose

bitcoin trading is not difficult job for people because bitcoin price is just increase and people buy bitcoin and then sell it with more high price we know that bitcoin price is very powerful.

[boyptc]

That's the risk in bitcoin and that's what we called "trading". It's just a normal thing that you'll do buy at lower price and sell at higher price. But if you want just to donate and don't want to earn then do the opposite thing and of course, no one wants to gain nothing but all of us wants to make profit. Out of that risk, that will give you good profit in the end.

[Fireblazer]

Trade bitcoin is not as dangerous as gambling, because there you can develop a clear buying strategy at a low price and sell when the price rises. As a result, you get a good profit almost for hobby.

[AK47-]

Every kind of trading is risky. Bitcoin has a very small market cap, so fluctuations are frequent. Bitcoin is often considered one of the most attractive currency for trading, due to high volatility. But there can be a risk of scams and fraud. So choose wisely.

[vroom vroom]

Every kind of trading is risky. Bitcoin has a very small market cap, so fluctuations are frequent. Bitcoin is often considered one of the most attractive currency for trading, due to high volatility. But there can be a risk of scams and fraud. So choose wisely.

Market capitalization of Bitcoin is nearly USD 20 billion (USD20.000.000.000, source: coinmarketcap.com) as of now. That is not VERY SMALL!

Highly volatile and risky yes, that's why exciting for risktakers. Though its volatility is kind of decreasing IMHO as the market grows. Scams, fraud and crime are not unknown also with FIAT currencies. 

[KennyR]

Trading in bitcoins is just  a pretty simple logic term.Trading is buying some thing or another coin from a low price you can get and then selling the coisn for profit big or small i doesnt matter as long as you are harvesting profit through it.Just like industry of buying and selling in the real world

No its not that simple because if you dont have a wide knowledge in trading you cannot make money on it. Trading is not buy low and sell high even the expert sometimes can lose

Yeah, it's not the process of buy low and sell high. Everytime users won't get such chances to profit out of the buy low and sell high. Price sometimes vary little by little in the forward direction and vice versa. So it's our effort that gets us the profit on the closer price prediction.

[pinggoki]

Trading in bitcoins is just  a pretty simple logic term.Trading is buying some thing or another coin from a low price you can get and then selling the coisn for profit big or small i doesnt matter as long as you are harvesting profit through it.Just like industry of buying and selling in the real world

No its not that simple because if you dont have a wide knowledge in trading you cannot make money on it. Trading is not buy low and sell high even the expert sometimes can lose

bitcoin trading is not difficult job for people because bitcoin price is just increase and people buy bitcoin and then sell it with more high price we know that bitcoin price is very powerful.

Right... If you have enough experince in trading it will never be difficult. However if you are a newbie I suggest you to ask some tips to the veterans in trading.
Trading is risky because we know that the value of bitcoin is unstable you didn't know when the coins that you are trading are going to dump. Hence, you should watch closely the trading platform.

[Ashong Salonga]

I think it will not be risky if you are intelligent and will have full knowledge about trade,

if you want to know about trade, then I will say that trade is simple buying with lower price and selling them at higher price. and for remaining details you can see the detailed tutorials available in various articles available on google.

Ofcourse. Trading is risky if your knowledge abou it are very little or lack of knowledge. Even if you have lot of money or investment as long as you didn't know how trading is happen and what are the different strategies. You will fall and suddenlt your big amount of money will all get lost and you will fall down because of lack of knowledge. Bitcoin trading is a type of business people use to earn or grow their investment. You must know that rules and strategies to have a good earnings.

[bitcoinmasterlord]

I think it will not be risky if you are intelligent and will have full knowledge about trade,

if you want to know about trade, then I will say that trade is simple buying with lower price and selling them at higher price. and for remaining details you can see the detailed tutorials available in various articles available on google.

Ofcourse. Trading is risky if your knowledge abou it are very little or lack of knowledge. Even if you have lot of money or investment as long as you didn't know how trading is happen and what are the different strategies. You will fall and suddenlt your big amount of money will all get lost and you will fall down because of lack of knowledge. Bitcoin trading is a type of business people use to earn or grow their investment. You must know that rules and strategies to have a good earnings.

The method is easy just buy bitcoins at a low price and sell it for a high price. But for this, you must have enough knowledge. You must know where to buy and where to sell. In Trading market skills is important if you are poor in analysing market price then better don't enter this field it will be risky.

[ChineTownMan]

Every kind of trading is risky. Bitcoin has a very small market cap, so fluctuations are frequent. Bitcoin is often considered one of the most attractive currency for trading, due to high volatility. But there can be a risk of scams and fraud. So choose wisely.

I agree, you can not earn a lot of money absolutely without risking anything. Just need to think carefully each step to make the loss of minimal.

[Kousei23]

I think it will not be risky if you are intelligent and will have full knowledge about trade,

if you want to know about trade, then I will say that trade is simple buying with lower price and selling them at higher price. and for remaining details you can see the detailed tutorials available in various articles available on google.

Ofcourse. Trading is risky if your knowledge abou it are very little or lack of knowledge. Even if you have lot of money or investment as long as you didn't know how trading is happen and what are the different strategies. You will fall and suddenlt your big amount of money will all get lost and you will fall down because of lack of knowledge. Bitcoin trading is a type of business people use to earn or grow their investment. You must know that rules and strategies to have a good earnings.

The method is easy just buy bitcoins at a low price and sell it for a high price. But for this, you must have enough knowledge. You must know where to buy and where to sell. In Trading market skills is important if you are poor in analysing market price then better don't enter this field it will be risky.

Yup. Trading is a method of selling and buying if the value is increasing or decreasing. Trading is one of the main soirce of income in bitcoin. In trading you must know the different rules and strategies in able to have a better income. Yet the risky situation in trading is you will risl your money in able to earn but sometimes it may be scammed or lost unpredictable.

[alexsandria]

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

Yep. The idea their is good and actually describe the trading but the one you've said is the strategy in order to have more earnings. The risky situation there is that you will risk all of your money to buy and somehow you didn't sure if the seller or buyer is legit. If that's the case and the seller or buyer isn't legit your money may be scammed or taken away by others without earning by you. You must know how trading works in able to avoid this situation.

[ilovefeetsmell]

It is trading your bitcoin into goods or services. Trading into other products, it is more profitable I think. You must have good sales talk, know how to trade and know your products better to make others trade to your products. It's risky sometimes because you don't know what will gonna happen if you will earn more or having more profitable.

[iMaster]

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.