6 Essential Resources for Bitcoin Trading
A collection of resources to help beginners trade with greater success
Successful trading is often a by-product of good decision making and quality information. From our experience with financial products, conducting research and analysis to inform trading decisions produces higher returns than simply guessing whether the price will go up or down.
With this in mind, we have compiled the top six resources beginner traders should be using to make informed decisions when trading Bitcoin.
1. Bitcoin Wisdom
Bitcoin Wisdom is a charting website that monitors the price of Bitcoin across several exchanges. Traders can use Bitcoin Wisdom for a range of tasks, including monitoring price trends, volume and order book bids/asks. Furthermore, it is possible to draw lines on the charts which can be used to conduct technical analysis. This can provide further insight into what direction Bitcoin’s price is likely to head.
2. Trading View
If you are inexperienced with conducting technical analysis, you can use Trading View to see the analysis and recommendations of other traders. Simply visit the Trading View homepage and search for ‘Bitcoin’ to see the analysis and recommendations being shared. Although you should conduct your own research, there is certainly no harm in considering the sentiment of the wider market.
3. Bitcoin Trading Teamspeak Server
A relatively unknown source of trading insight is a Teamspeak server dedicated to Bitcoin trading. This is particularly valuable for day traders, who will benefit from the constant discussion on market changes as they happen live. Also, being audio-only, day traders can still watch the charts like a hawk.
To download Teamspeak, click here. After the programme is installed, open Teamspeak and go -> connections (top left nav) -> connect -> and enter the server address: ‘desticraft.fr:9988'. Afterwards, simply choose a nickname and click connect.
The chart theme in this blog post continues with Blockchain.info. However, while the other charting websites have been focused on technical analysis, Blockchain.info is more useful for fundamental analysis.
Fundamental analysis involves looking at the underlying factors that may influence Bitcoin’s price other than price trends. For instance, monitoring the number of transactions (above) can be used as a baromonitor of Bitcoin’s adoption. Or a sudden increase in the difficulty chart could suggest an imminent decrease in supply, which in theory would cause the price to rise.
5. Bitcoin Rich List
Bitcoin Rich List monitors the activity of the wallets with the greatest number of Bitcoins. Besides just oggling at how many Bitcoins some people own, the website can be used to inform long-term trading strategies. The wealthiest Bitcoiners are considered to be ‘smart money’ who have the inside story on what is happening in the markets.
By comparing the transactions going in and out of these accounts, one can get an indication as to whether smart money is accumulating or spending / selling Bitcoin. Interestingly, large holders have been acummulating more Bitcoin this fall.
When using Bitcoin Rich List, be aware that several wallets may be owned by one person. Additionally, some of these wallets will also belong to companies. Therefore take this data with a pinch of salt when trying to follow ‘smart money’.
6. Bitcoin Talk
Bitcoin Talk is the first and largest Bitcoin forum. The forums can be useful for Bitcoin traders in several ways.
The Bitcoin Discussion section often contains useful news updates to keep track of the latest developments. This another on-going way to assess the fundamentals of Bitcoin, which can help guide traders as to whether they should be feeling bullish or bearish.
The Economics and Speculation section, similar to Trading View, frequently contains analysis technical analysis and views of Bitcoin traders. Additionally, the famous Wall Observer thread may be particularly useful for day traders. If one can sift through the memes and trolling, there are interesting discussions and charts, with an emphasis on daily price movements.
In summary, there are a range of resources that Bitcoin traders can tap-into. These are:
1) Bitcoin Wisdom
2) Trading View
3) The Bitcoin Trading Teamspeak Server
5) Bitcoin Rich List
6) Bitcoin Talk