For example, Day Trading involves conducting multiple trades throughout the day, and trying to profit from short-term price movements. Day traders spend a lot of time staring at computer screens, and at the end of the day, they usually just close all of their trades.

Scalping is a day-trading strategy that a lot of people are talking about. Scalping attempts to make substantial profits on small price changes, and it’s often referred to as “picking up pennies in front of a steamroller.”

scalping focuses on extremely short-term trading, and it’s based on the idea that making small profits repeatedly limits risks and creates advantages for traders. Scalpers can make dozens—or even hundreds—of trades in one day.

Meanwhile,Swing Trading tries to take advantage of the natural “swing” of the price cycles. Swing traders try to spot the beginning of a specific price movement, and enter the trade. Then they hold on until the movement dies out, and take the profit. They try to see the big picture without constantly monitoring their computer screen. Swing traders can open a trading position, and hold it open for weeks (or months), until they reach the desired result.

So now that you know what trading is, how is it actually accomplished? How can someone predict what Bitcoin will do?

The short answer is that no one can really predict what will happen to the price of Bitcoin. However, some traders have identified certain patterns, methods, and rules that allow them to make a profit in the long run. No one exclusively makes profitable trades, but here’s the idea: At the end of the day, you should still see a positive balance, even though you suffered some losses along the way.