Bitcoin Trading- A Quick Guide to Get Started


(MENAFN– CCP Marketing)

Bitcoin trading is undoubtedly a high-risk activity. Like the other cryptocurrencies, Bitcoin is volatile. However, some Bitcoin traders exploit this volatility to maximize their profits. But anybody considering trading Bitcoin should prepare to lose their money or reap significant profits if they speculate this virtual currency’s price correctly.

Initially, people could use personal computers to mine Bitcoin. Bitcoin mining involves solving complex math equations or validating Bitcoin transactions using special software. However, Bitcoin mining is no longer profitable due to high competition. Setting a Bitcoin mining rig may not be a worthwhile investment because you may not recoup the entire amount you invest in the project.

Consequently, many Bitcoin enthusiasts have turned to Bitcoin trading to make money with this cryptocurrency. Bitcoin trading is straightforward for those who understand it. Bitcoin volatility is, perhaps, the primary attraction.

Rapid price fluctuations provide a chance for traders to predict the direction they will take and buy or sell their tokens. That way, they can use platforms like Crypto Genius to purchase and sell Bitcoin for profits. Perhaps, you can register at Crypto Genius to start trading Bitcoin too.

Another attraction for Bitcoin traders is the 24-hour market. Stock markets limit traders to working hours. On the other hand, people can purchase and sell Bitcoin on crypto exchanges anytime, anywhere. Since Bitcoin is a worldwide currency, the political and financial situations of a different single country can’t affect its price. So, how do you start trading Bitcoin?

Set Up a Bitcoin Wallet

Like a physical purse for carrying fiat money, a Bitcoin wallet is your cryptocurrency’s storage. However, you download and install it on a computer or smartphone to receive, transfer, and store Bitcoins. Therefore, start by setting up a Bitcoin wallet before trading this virtual asset.

Choose a Bitcoin Exchange

You require a stable and secure internet connection to start trading Bitcoin. After that, identify a reputable Bitcoin exchange. A Bitcoin exchange is the digital market where people buy and sell this virtual currency.

A Bitcoin exchange enables you to purchase or sell cryptocurrencies like Bitcoin using fiat money. For instance, you can buy Bitcoin with U.S dollars. Such a platform is friendly to new traders.

Also, a crypto exchange can allow you to purchase Bitcoin with altcoins or other cryptocurrencies. However, such a platform is ideal for experienced Bitcoin traders.

Open an Account

Opening a Bitcoin exchange account is straightforward. Click on the signup icon and fill out the provided form. After that, please verify your identity with accurate information, and link it to a conventional payment method, like a credit card, PayPal, or bank account. That way, you can fund your account with the amount you wish to spend on your Bitcoin purchase.

Start Trading

After opening a Bitcoin exchange account and funding it, you’re ready to go as soon as the platform verifies your identity. Place a buy order when you think Bitcoin price is favorable. The crypto exchange will execute the purchase order, converting your fiat money into Bitcoins.

You can hold Bitcoins in your crypto exchange account or transfer them to your digital wallet. However, keeping a significant amount of Bitcoin in your crypto exchange is not wise because criminals can hack it and steal your money. Also, the platform can collapse and leave you with losses. Therefore, experts recommend sending Bitcoins to a secure digital wallet.

Takeaways

  • Due to Bitcoin’s volatility, start trading it with a small amount of fiat money.
  • Choose a reputable Bitcoin exchange after considering its fees, commissions, and other requirements.
  • Ensure that the Bitcoin exchange you register with can operate in your country.
  • Protect your Bitcoin wallet from criminals at all costs.

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Read More: Bitcoin Trading- A Quick Guide to Get Started

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