For those of you who are new to the concept of “bit coin” or “bartering coins”, allow me to introduce you to a new term: mini-bit. Mini-bit is just what it sounds like. It’s the fraction of one whole bit that you trade. Each time you divide a large whole bit, you get a smaller piece. You can’t do this with loose coins – you would never get such small pieces through any other method.
You can divide a large number of smaller bits and then split them again. The smallest bit is called the pennies. In bit coin trading, you must learn to know how to calculate the pennies, and split them properly. This is a vital skill, because otherwise you might spend more than you need to, and perhaps lose money.
To split coins, you first have to learn how to use the price chart. Price patterns exist in forex markets, and they reveal a lot about the state of the market. When you see price patterns in the charts, pay close attention. If you see a price pattern, which breaks into two groups – a bright line or a series of red or yellow lines – that’s a good indication that you have found a profitable area.
If you look at a particular price area and find a series of red lines, that indicates that it has been a profitable area recently, you can begin to split your little bit of bit gold. But be careful. Just because a pattern is popular, does not mean it is right for you. In fact, it is usually a sign that you should try somewhere else.
To split a little bit of your gold, you first need to locate the perfect market for the task. For instance, if there are a lot of buyers buying a certain amount of gold per week, and your price has dropped just a little bit, don’t panic and split your gold! You just may find another great market! But if there is very little buying, or even if the market has slightly increased in a small way, you may still want to stick with the old method of selling.
To split your coins, simply figure out what price would bring you the most profit. Then, check your charts to see if the price that you are looking at is one of those prices. It may just be a little peak, or a little drop, but if it’s close to your profit target, you can go ahead and split your coins.
However, if you find that your profit target is a little bit higher than the current price of all your coins, then you might want to wait a while before you attempt to break it. Why? Simply because it’s easy to do, and many people will be waiting around to grab them. Wait until the crowds start to thin out. This will allow you to strike a good deal better than if you try to do it during a mass frenzy.
When you do decide to split your bit coins, try to do it during the day. The high demand during the evening can drive up the prices of your coins, so try and split them during the day as often as possible. If you have a large lot of coins, or if you are trying to split a large amount of coins, you may be able to strike a good bit better if you split them during the night. Whatever you decide, make sure you weigh out the pros and cons before you get started.