In this day and age, a lot of people would like to try their hand at trading Bitcoin. Whether through day trading, scalping, or long-term holding, there are many different strategies to pursue. Unfortunately, without proper knowledge, people will lose a great deal of money. The Bitcoin Trading Simulator may be of great help in this regard, even though it can’t exactly mimic the experience of actually trading cryptocurrency.
The Bitcoin Trading Simulator is a Valuable Tool
In most cases, one would not even consider trading Bitcoin without first understanding the basics. Technical analysis can be of great value in any sector, even though it does require people to believe in such predictions sufficiently to make them come true. Not everyone wants to get the hang of MACD movements, Bollinger bands, head-and-shoulders patterns, et cetera. It’s not necessarily the smart approach to Bitcoin trading, but it can still work out just fine.
Even so, it is still advised not to begin trading Bitcoin directly without some practice. That is much easier said than done, though, as there have not been many free tools allowing people to do exactly that. With the Bitcoin Trading Simulator, that’s beginning to change. It is a third-party tool developed by Reddit user theonlyalt2. The goal of this tool is to let people experience the thrill of trading Bitcoin without risking any money until they know what they are doing.
As one would expect, this is not a live trading chart. What it does provide, however, is a historical graph of Bitcoin price movements which allows users to recognize patterns. It also shows that selling for tiny profits is not the only viable strategy whatsoever. After spending a few seconds with this simulator, it becomes evident that holding Bitcoin for a few days or weeks also leads to big profits. A golden rule in trading is to always take small to medium-size profits rather than hold out for major gains – or major losses.
Moreover, the Bitcoin Trading Simulator presents all necessary information in a format that is easy to comprehend. One can see when they bought BTC, how many units they are holding, the current price, and one’s proceeds. In our first “trade”, we netted a profit of 10.83% by holding onto our Bitcoins for just over a month. Although this is no guarantee of expected returns in 2017 and beyond, it is still interesting to take into account.
For the more technical analysis-oriented individuals out there, this platform won’t offer much value. It is still a work in progress and the developer may decide to add some additional features over time. When that happens, it may become a viable competitor to TradingView, although that will still remain the go-to platform for most people who want to gain a better understanding of how cryptocurrency trading works.
In the end, having the Bitcoin Trading Simulator available at one’s disposal is always handy. It gives valuable insights as to how the Bitcoin price has evolved in the past and how people should calculate their options, losses, profits, et cetera. That being said, such a simulator can’t replicate the real-world emotions affecting all cryptocurrency traders, though. Fear, greed, and sleep deprivation from looking at charts all night will all play their role in the decision-making process.