Bitcoin trading is based on speculating on movements in the cryptocurrency’s price. As an asset it’s not regulated or managed by any authorities or banks like conventional currencies are.
Bitcoin transactions are processed via a distributed ledger called “blockchain” with the approval of all peers in the network. So, there is no need for any third party or a regulator.
Bitcoin is a relatively ‘young’ asset on the market and its volatility is not stable. Because of it crypto traders are increasingly using derivatives to speculate on rising and falling prices – to make the most of said asset’s volatility.
🧑💻 With NAGA you can trade Bitcoin with financial derivatives like CFDs, which means you can raise profits without actually buying or owning the asset.
➡️ Benefits of Bitcoin CFD trading:
Let’s say a current Bitcoins’ price is $50,000 / coin and you believe its price will rise in the near future, but you only want to trade with $1,000. Thanks to Leverage you are able to enter a trade with your $1,000 which will be used as a margin that will enable you to enter into a bigger position.
Through your NAGA profile, select the Markets tab and find Bitcoin from the cryptocurrencies list. Select the ‘BUY’ option and enter your amount of $1,000 and submit your trade. You can monitor it or close it whenever you want in My Trades tab, on top of your NAGA profile. Depending on your margin, you can keep the position open for as long as you decide to. If the price of Bitcoin will rise, you can choose to close the position and take profit. If the price will drop, you either keep it open until it comes back up or choose to close the trade at a loss. Alternatively, if you believe that Bitcoin’s price will drop in near future - then instead of selecting the ‘BUY’ option, you would click on ‘SELL’ and make money when the price drops.
Trading Bitcoin through an exchange:
Buying Bitcoin through an exchange (on NAGA you can use NAGAX) is mostly for long term investors, who use so-called ‘buy-and-hold’ trading strategy. And this means that by buying through an exchange you take direct ownership of it, expecting for the price to rise over time.
NAGAX is NAGA’s cryptocurrency exchange platform, providing access to unlimited, commission-free trading. It is there that you will be able to store, buy and sell your Bitcoin. It is integrated with NAGA Wallet, which makes your fiat-to-crypto transactions and asset management super easy!
NAGA Wallet (or Crypto Wallet, located above your NAGA Profile/Feed) is a super secure payment gateway, where you are able to store and receive Bitcoin (or other crypto assets) and control numerous digital payment types at the same time. Combining NAGA Wallet and NAGAX you can trade Bitcoin and send it to your wallet right off the bat!
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Thankfully, with NAGA you are always in pole position as the platform gives you all the chances to boost your trading activity, whether you hold in NAGA Wallet, trade on the exchange or invest in CFD*.
Besides establishing how you want to get exposure to Bitcoin (trading bitcoin derivatives (CFD) or buying bitcoin through an exchange) there are more things to remember about in order to maximise your experience and chance to take profit.
This is a good strategy for those investors who want to benefit from Bitcoin’s daily price volatility, short term price movements and who want to avoid market exposure overnight (which means no funding charges on your position). You’ll simply open and close your position within the same trading day
This strategy means you trade according to a current trade. If the market is bullish - you go long, and if the market is bearish - you go short. If the trend starts slowing or reverse you can close your position and consider opening new one that will match the emerging trend
This strategy is mostly practiced by investors who are concerned about the market moving against them, which means you would try to mitigate your exposure to risk, by taking an opposing position to the one you opened
Buying and holding Bitcoin. The name of this strategy comes from a misspelling of a word ‘hold’ with an attached humorous meaning of ‘hold on for dear life’. However, remember that you should only buy and hold bitcoin if you believe the positive outlook in its long-term price
❗️Remember, whether you trade Bitcoin derivatives or through an exchange, your capital is at risk.
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Trade Responsibly: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing you money. Past performance of a NAGA community member is not a reliable indicator of his future performance. Content on NAGA's social trading platform is generated by the members of its community and does not contain advice or recommendations by or on behalf of NAGA.
Trading with NAGA Trader by following and/or copying or replicating the trades of other traders involves high levels of risks, even when following and/or copying or replicating the top-performing traders. Such risks include the risk that you may be following/copying the trading decisions of possibly inexperienced/unprofessional traders, or traders whose ultimate purpose or intention, or financial status may differ from yours. Before making an investment decision, you should rely on your own assessment of the person making the trading decisions and the terms of all the legal documentation.
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