Bitcoin trading: what it is, how to start, and what to look for — we propose to study several simple solutions. Don’t confuse them with professional investment advice; rather, take these decisions as points to think about. If you need investment advice, consult a professional.
Our task is to show novice traders and crypto investors how to start trading bitcoin, and that the first steps can be clear and simple.
Solution #1. Learn Everything About Bitcoin
Explore what you are investing in. It is easy to get euphoric, believing that the price of bitcoin can reach a million dollars per coin, or vice versa, go down to a thousand. Analyze forecasts and what they are based on. Read more, monitor the market until it feels like you are starting to feel it. Then BTC trading will bring what you expect.
Bitcoin is still not a legal payment option, except for a few countries. Governments and banks don’t like bitcoin as much as its owners. So far, digital currency is an additional asset class.
Solution #2. Choose a reliable crypto exchange
So, you have decided that you will be able to trade bitcoin on the exchange without intermediaries. Now all you need to do is choose a reliable crypto exchange. It all depends on what you want to get or how you are going to trade. If the goal is a one-time trade in bitcoin (buy, sell) or altcoin, then crypto exchangers can be simpler and faster, but the commissions there may be higher than the exchange ones. A reliable cryptocurrency exchange is primarily a regulated cryptocurrency exchange.
Solution #3. Develop a trading strategy
You have already decided on the exchange. Are you going to make short-term deals or do you want to opt for long-term investment? Or maybe you are interested in the medium term? Strategy is something to think about. But whichever cryptocurrency trading strategies you choose, each will require rational, informed decisions and discipline.
Solution #4. Use exchange instruments
It is good to ask yourself how to trade bitcoin before you start trading. All transactions on the exchange are made according to orders. An order is a buy/sell order. There are different types. The main and common ones are market, limit, and stop-loss.
Solution #5. Examine the risks
Let’s check some risks briefly:
- Be careful and watch out for scams, ignore sites that promise you quick and easy money.
- Do not download random wallets and do not follow random links so as not to install malware on your gadgets. Beware of spoofing. Double-check that you are using the correct link.
- Choose regulated exchanges. The cryptocurrency market and bitcoin trading are like the Wild West, which has no sheriff. According to statistics, the victims of hacker attacks are mostly unregulated platforms.
- Ignore the market noise, do your market research.
These simple tips will help you start and develop in a new niche. Good luck!