Liquidity describes the degree to which an asset can be quickly bought or sold without significantly impacting the price. Bitcoin liquidity directly affects trading outcomes. Traders must consider liquidity’s nuances to excel in Bitcoin markets. In this guide, we explore why liquidity matters, how it impacts Bitcoin trading strategies and behaviors, and the tools traders […]
Author: Digital Tech
What Are Wrapped Bitcoins (WBTC) and How Do They Work?
As the world’s first and most popular cryptocurrency, Bitcoin has transformed the digital economy and ushered blockchain technology into the mainstream. Now an emerging innovation called “wrapped Bitcoin” aims to expand Bitcoin’s utility even further by integrating the preeminent crypto asset into the ecosystem of decentralized finance (DeFi) products built on alternative blockchains like Ethereum. […]
What Are The Most Effective Tools For Bitcoin Trading Analysis?
Cryptocurrency trading analysis involves evaluating market data to identify profitable trading opportunities. Myriad tools and platforms exist for analyzing a Bitcoin wallet holding’s dynamics. Determining which solutions offer the most valuable capabilities requires understanding the use cases of different trading analysis tool types. In this guide, we walk through the key categories of Bitcoin trading […]
What Are The Tax Implications Of Buying, Selling, And Using Bitcoin?
As cryptocurrencies like Bitcoin rise in popularity globally, governments continue clarifying tax policies for holders and investors. Unfortunately, many crypto buyers often overlook tax obligations which can lead to penalties down the road. So what exactly are the key tax rules around buying, selling, and spending Bitcoin that holders should keep in mind? Why is […]
How To Spot And Avoid Common Pitfalls In Bitcoin Swing Trading?
Swing trading aims to capture short-term price movements in Bitcoin over periods of a few days to weeks. The promise of quick profits comes with substantial risks, as Bitcoin’s volatility can swiftly turn winning trades into losers. Mastering swing trading requires experience to understand its challenges and pitfalls. In this guide, we explore the most […]
What Is The Bitcoin Halving Event And How Does It Impact The Cryptocurrency Market?
The Bitcoin halving event, sometimes referred to as “the halving”, is one of the most anticipated and impactful events in the cryptocurrency calendar. It occurs approximately every four years and leads to a reduction in the rate of new Bitcoin production and the amount of Bitcoin miners receive as rewards for maintaining the Bitcoin network. […]
What Risks And Rewards Come With Margin Trading For Bitcoin Investors?
Margin trading allows cryptocurrency investors to amplify profits and losses using borrowed funds. While exchanges offer tantalizing leverage up to 100x, margin trading is an extremely risky endeavor. Even veteran investors can get crushed underestimating its hazards. However, when applied prudently under the right conditions, margin trading can enhance returns. In this guide, we explore […]
What Are The Psychological Factors Impacting Bitcoin Trading Decisions?
Trading is often described as a battle of the mind as much as a battle between buyers and sellers. Psychology heavily influences trading behaviors and outcomes. Understanding how emotions and mental biases impact decisions is key to improving trading performance. For volatile assets like Bitcoin, psychology is even more integral to trader success. In this […]
What Are The Key Differences Between Bitcoin And Altcoins?
Bitcoin sparked the cryptocurrency revolution when it launched in 2009 as the world’s first decentralized digital currency. Since then, many other cryptos have emerged trying to build upon Bitcoin’s innovations or offer new capabilities. These alternative coins are commonly referred to as “altcoins”. But while crypto-assets may seem similar on the surface to digital tokens […]
Can Fundamental Analysis Enhance Your Bitcoin Trading Strategy?
Most Bitcoin traders rely on technical analysis to inform their trading decisions. Price charts, indicators, and candlestick patterns provide the basis for executing trades. However, focusing only on Bitcoin’s price dynamics neglects the “fundamentals” driving market behavior. Fundamental analysis examines factors like on-chain data, mining activity, regulatory developments, sentiment, and news that impact Bitcoin’s value. […]