How to guide

A Beginner’s Guide to Trading Bitcoin

August 31, 2020
What is Bitcoin? Launched in 2009 by the mysterious developer Satoshi Nakamoto, Bitcoin (BTC) became the world’s first and largest cryptocurrency. An alternative to central bank-governed fiat money, the decentralized digital currency functions on a peer-to-peer controlled network using revolutionary blockchain technology.

How do I use Bitcoin?

Anyone can invest in and buy Bitcoin. The first step is to create an account with a licensed and trusted cryptocurrency exchange, such as EQUOS. Once you have set up your account, verified your identify, and added some funds, you can begin buying and trading BTC.

Trading Strategies

Day trading involves placing multiple trades throughout the day and speculating on short-term movements. Day traders buy and sell BTC and close their trades BTC on the same day. They seek to profit from emerging patterns.

Scalping involves placing trades frequently on very minor price movements to exploit any price gaps in the market for extremely short periods of time. Scalpers believe that obtaining small profits frequently limits risk and creates advantage.

Swing trading involves spotting a trend as it occurs and holding that position until the trend runs its course or is believed to change. Swing traders seek to profit from the momentum of the market.

In automated trading, investors opt for a less active role in which trades are executed in accordance with pre-stipulated criteria, or a pre-programmed trading strategy. This automated setup responds to market conditions on a traders’ behalf.

What types of orders can I make?

A trader will enter and exit their trade by placing orders.

A market order is a buy or sell order. On an exchange, you will be matched with sellers and buyers to meet your order, which is fulfilled at current market price.

A limit order is an order with an instruction set by the trader to either buy or sell above or below the current market price to yield a more advantageous return for the trader. However, if the price is not reached, the trade does not go forward.

A stop loss order is a buy or sell order set to a certain price. BTC can be bought or sold at that set price to minimize loss if the market moves unfavorably with your trade. A stop loss order remains active until the position is closed or the order is cancelled.

Technical and fundamental analysis

Technical analysis involves the study of past price movements and predictions made using market statistics to evaluate current and future trading conditions and trends. Fundamental analysis involves looking at external factors, such as political, social and economic influences, to establish the value of a stock or asset.

Engaging in chart analysis is helpful for traders in identifying useful patterns and choosing a strategy.


It is recommended to transfer BTC to a qualified custodian for secure storage. BTC may also be purchased into a wallet and held here for ease of accessibility and short term use.

Cautionary note: It is important to assess your own risk-tolerance and to inform yourself about the Bitcoin market before trading BTC.

Related Articles

EQUOS Origin explainer: How does Staking work?

March 19, 2021

Staking EQUOS Origin (EQO) on the platform means simply holding onto it on EQUOS. There are multiple benefits for simply holding EQO on EQUOS including earning more EQO, reduced fees and enhanced yield.

Keep up with crypto through EQUOS!

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

EQUOS Origin explainer: How does EQO enhance my earnings potential?

March 19, 2021

The core utility of EQUOS Origin (EQO) is around enhanced earning power on assets held in “Earn” accounts on the EQUOS platform and in Digivault wallets.

How to Trade in a Sideways Market

February 16, 2021

Cryptocurrency markets are famous for their inherent volatility, yet they are also no stranger to quieter periods. In fact, Bitcoin (BTC) spent almost two months in the summer of 2020 locked in a stubborn trading range between $9,000 and $10,000. The number-one cryptocurrency almost resembled a stablecoin with its uncharacteristic lack of volatility during that time. So, how do traders learn to trade in sideways markets and capitalize on the smallest fluctuations in an asset's price? Here are a few tips.

Perpetuals Trading Series: How EQUOS deals with liquidation

January 22, 2021

As we explained in the previous sections in this guide, an account is only able to send new orders as long as its Total Account Margin is higher than the Initial Margin required for all open positions and open orders. As soon as the Total Account Margin drops below the Initial Margin, the account can no longer send any new orders unless such order would reduce the existing position (e.g. a sell order, when the current position is long). To continue adding positions (e.g. add buy orders, when the current position is long), the trader will have to transfer additional funds that can be used for margin to their wallet, close open orders, or close open positions.