Trading Bitcoin

What is Bitcoin?

Bitcoin is the original cryptocurrency and the largest by market capitalisation. Since the approval of spot Bitcoin ETFs, institutional adoption has accelerated, establishing BTC as a mainstream financial asset alongside gold and equities.

Key Price Drivers

Understanding what moves Bitcoin is essential for developing effective trading strategies:

• Institutional adoption and ETF flows
• Halving cycles (next: 2028)
• Regulatory developments globally
• Macro liquidity and interest rate environment

Who Should Trade Bitcoin?

How to Trade Bitcoin with a Broker

Most retail traders access Bitcoin through CFDs (Contracts for Difference), which let you speculate on price movements without owning the underlying asset. Here's what to look for:

1. Tight Spreads: Lower spreads reduce your trading costs on every position
2. Fast Execution: Critical for short-term strategies and volatile instruments
3. Risk Management Tools: Stop-loss orders, guaranteed stops, and negative balance protection
4. Platform Quality: Advanced charting, technical indicators, and mobile trading
5. Regulation: Always choose a broker regulated by a Tier-1 authority

Trading Strategies

Day Trading

Day trading Bitcoin involves opening and closing positions within the same trading day, capitalising on short-term price movements. Requires fast execution, tight spreads, and understanding of intraday patterns.

Swing Trading

Swing traders hold positions for days to weeks, capturing medium-term trends. This approach requires less screen time and can suit traders with other commitments.

Position Trading

Position traders take longer-term views, holding for weeks to months based on fundamental analysis and major trend identification.