The Bitcoin phenomenon has been exciting both investors and ordinary people for more than a decade now. Due to the sharp jumps and drops in price, this cryptocurrency has become a must-have for any investment portfolio — very few instruments can compete with BTC in potential profitability.
How to trade cryptocurrencies with IQ Option
Trading cryptos via a CFD trading account allows speculating on their price differences instead of physically buying or selling them. This means traders can earn both in an upward and downward direction. Given the high volatility of cryptocurrencies, running in a blockchain, trading makes it possible to get significant returns on investments in case of the positive outcome of the trade. The IQ Option allows trading with multipliers which can be used to increase the investment amounts.
Aside from Bitcoin, IQ Option offers many other cryptocurrencies: Ethereum, Ripple, Cosmos, Litecoin, Binance Coin, TRON, IOTA, Ontology, EOS, Dash, NEO, Stellar and others – over 25 in total.
The Bitcoin trading process described below is applicable to trading any other cryptocurrency.
How to trade bitcoin on IQ Option platform
- In the Traderoom, click on the “+” button at the top of the screen. Choose Cryptocurrencies → Bitcoin.
- Choose the investment amount in the panel on the right.
- Set up the Stop-Loss and Take-Profit values.
- Click the Buy or Sell button to enter your position.
Trading with multipliers
Multipliers allow traders to manage a position several times higher than the amount of funds that they actually have on hand. Multiplier for bitcoin on the IQ Option platform goes from x3 to x100, which means it increases your deposit amount by 3 or 100, respectively.
To trade bitcoin with x100 multiplier, choose the corresponding asset from the dropdown menu.
Don’t forget that by using multipliers, your odds increase along with your risks.
Risk management
To stay in control of the risks, the IQ Option platform offers the Stop-Loss and Take-Profit features. By setting them, you allow the system to automatically close your position once it hits the preset profit and loss levels. This way, you don’t have to monitor the market all the time and can be sure that you won’t lose more money than you can afford.
You can set Stop-Loss and Take-Profit in profit percentage (e.g., when profit and loss are 50% of the invested amount), profit in money (e.g., when profit is 50 BRL), or asset price (e.g., when bitcoin price hits 54457.635).
On top of that, you can use the Trailing Stop feature. It automatically shifts your Stop-Loss limit up or down in case the price is moving in a favorable direction.
For example, if the market starts moving in your favor by 50 points, the preset Stop-Loss value is automatically shifted by 50 positions. If the rate then begins to move in the opposite direction, the contract will be closed.
Basically, Trailing Stop is a more flexible variation of Stop-Loss. It is widely used in the chaotic markets with sharp rate movements that do not allow you to accurately determine where the trend is going. That makes Trailing Stop a useful instrument for crypto trading.
Conclusion
With IQ Option, people can trade bitcoin and 20+ more cryptocurrencies and tokens. Traders can increase their investments and potential returns using multipliers — from x3 up to x100. To minimize losses, the platform offers popular risk management tools, such as Stop-Loss, Take-Profit, and Trailing Stop. Start right away and trade Bitcoin on IQ Option.
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