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Bitcoin trading currency holding and buying and selling rules

Mar 14, 2024 pm 03:12 PM
Bitcoin exchange trading platform

Bitcoin trading is an investment method that makes profits by buying and selling Bitcoins. There are two main types: currency holding transactions and contract transactions. Currency trading refers to buying and holding Bitcoin, waiting for the price to rise before selling it to make a profit; contract trading is to bet on the rise or fall of Bitcoin price through contracts, without actually holding Bitcoin. No matter which way you trade, it's crucial to understand the rules of buying and selling, choose the right trading platform, and take appropriate risk management measures.

Bitcoin trading currency holding and buying and selling rules

#Bitcoin trading is an investment method that makes profits by buying and selling Bitcoins. Bitcoin transactions can be divided into two types: currency holding transactions and contract transactions.

Currency holding transaction means that investors buy Bitcoin and hold it, waiting for its price to rise before selling it to make a profit. The rules for holding the currency are as follows:

  • Buy: Investors can buy Bitcoin through an exchange or over-the-counter (OTC). To buy Bitcoin on an exchange, you need to first register an account and recharge funds, then select the Bitcoin trading pair you want to buy, enter the purchase quantity and price, and finally click the "Buy" button. To buy Bitcoin OTC, you need to find a seller and agree on a transaction price and method.

  • Hold: After investors buy Bitcoin, they can store it in an exchange account or wallet. Exchange accounts offer relatively low security but are convenient for trading. The security of the wallet is relatively high, but transactions are more inconvenient.

  • Sell: When the price of Bitcoin increases, investors can sell Bitcoin to make a profit. The operation of selling Bitcoin is similar to buying Bitcoin.

Contract trading means that investors do not actually hold Bitcoin, but bet on the rise and fall of Bitcoin prices through contracts. The rules for contract trading are as follows:

  • Opening a position: Investors can open long or short contract positions through the exchange. A long position is when an investor bets that the price of Bitcoin will rise, and a short position is when an investor bets that the price of Bitcoin will fall.

  • Position: Investors can hold contract positions until the Bitcoin price reaches the desired target.

  • Close positions: When the Bitcoin price reaches the expected target, investors can close their contract positions to make a profit.

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