OK so you have checked out the basics on Bitcoin, you have bought your first Bitcoin and now you're ready to take the leap into trading. Trading can be a way to make a lot of money but it can also be a way to lose a lot of money. Personally, I don't do trading. I find it much too risky and every time I do it, I wind up losing money. However, I will share with you what I know about trading and the Bitcoin market.
There are two key components to trading. The first is learning how to read the historical charts to predict future activity. The second is logging into an exchange to actually act on the information you learned in step one. Below I cover both pieces of information for you.
By tracking historical bitcoin value and buying and selling activity, you can reasonably accurately predict what the market will be doing in the future. Below I show you how I use the website tradingview.com to track trends.
Now that you think you have a pretty good handle on when to buy and when to sell, you need to actually execute those orders. To do that, you need to log into a Bitcoin exchange. All cryptocurrency trading (whether it's Bitcoin or any of the Alt Coins) takes place on a cryptocurrency market.
These are some of the more popular exchanges that I use. You can use any of these that you want but I recommend you have an account with at least two of them.
Bittrex is one of the larger crypto to crypto exchanges offering a large number of trading pairs into bitcoin. The exchange does have a very high turnover crypto currencies - leading some to accuse it of allowing pump and dump schemes that erode confidence in the crypto currency ecosystem as a whole.
Kraken exchange has many trading pairs and is one of the oldest exchanges. It’s great for experienced traders that know what they are looking for. However, the interface and fee structure is quite complicated, and payment options are severely limited.
GDAX is the exchange operated by Coinbase. It offers a better platform for day trading and high-volume trading. It has competitive fees and high liquidity but doesn’t boast all of the bells and whistles of other exchanges.
Poloniex is a pure crypto to crypto exchange based in the United States. With a grand redesign in early 2015 the site has added a wealth of features to provide a fully immersive trading experience. For a crypto to crypto exchange there is good security and decent volume and orderbook depth for the majority of its trading pairs.