Trading bitcoin can be extremely profitable if you do it safely.
Remember the basics
- Learn as much as possible before you invest.
- Never invest more than you are willing to lose.
- If you invest borrowed money ("margin", "leverage", "gearing"), you can lose more than your initial investment.
After you have those down
- Carefully
check and regularly monitor the reputation
of any exchange where you decide to do business.
- Make sure all software on your system gets automatic updates.
- Spread your risk over different exchanges.
- Use limit orders.
- Start with small transactions.
- Never give all your capital to a single exchange.
- If you need to buy or sell a large amount, do it in parallel at different exchanges.
- If you must use a single exchange for a large amount, do it in smaller increments.
- Before you send or receive a large amount,
always move a small amount first using all the same data.
If things don't go perfectly, everyone will be calmer.
- Leave as little as you can on deposit at any exchange.
- Consider a reputable escrow agent for larger amounts.
- Don't trade derivatives.
- Don't trade with borrowed money.
- Keep it simple. More complexity means more risk.