How do I learn how to trade bitcoin?
Trading Bitcoin sounds like a scary proposition to many, but it is not! Think of Bitcoin trading like you would making trades on the stock market. Instead of buying stocks, you are buying a whole or a piece of a cryptocurrency. Want to learn how to trade Bitcoin? Let us dig deeper!
What exactly is this cryptocurrency? What are some of the ways to get involved? The how of trading Bitcoin is relatively simple. Guidance can be realised when you follow the documented steps.
Bitcoin is Surging
The reason you are even reading an article on learning to trade Bitcoin is due to the news stories. If you look back at just January of 2017, the price point for one Bitcoin was around $1,000. That may seem high until you look at where it stands today. In 2017 the price of Bitcoin surged up to and above $20,000 and has settled in the upper teens since.
Interest in Bitcoin and other forms of cryptocurrency continues to push the price point higher. All of the news stories are great for those that have already invested, as well as those looking to jump in for the first time.
It is Not Just Bitcoin
It is not the only Bitcoin in the cryptocurrency game! Many others have seen significant gains recently, including GAS, Zcoin, Walton, MaidSafeCoin, among others. Litecoin and Ethereum are two of the other big names as well.
It is important to note that it is not just Bitcoin in the cryptocurrency market. With all of the different options that are available, trading cryptocurrency is very important. The days of buying into one cryptocurrency and just holding forever are over. With the big swings and the multitude of options available, you want to trade in and out of all sorts of cryptocurrencies. Take advantage of the market that exists!
How to trade Bitcoin, Make an Account
To do trading of cryptocurrency, you need to start with an account. Just like there exist brokerages that allow for stock market trading, many exist to trade cryptocurrency as well!
Look at a site such as CoinSpot, one of the elders in Australia and abroad. You can get signed up for an account in a matter of minutes. Verify the account and also get set up with a way to fund it. Once you have all of that established, it is time to research!
Fund the Account
To learn how to trade Bitcoin, you need available funds. Funding of the account for trading is accomplished via a bank account usually. A checking or savings account link exists. Once the connection is in place, you can take money from the accounts to fund the purchasing of the cryptocurrencies. A debit or credit card may also work for the purchase price. Having a variety of ways to do the funding allows for easy entry into the cryptocurrency market.
Be Confident in the Trades
It is important to establish confidence in the trades you are making. The worst thing you can do is just to begin to trade. You need to do your research! It is easy to be overwhelmed by all of the options that exist. Have you ever heard of FunFair or Monaco? How about Raiden Network? These are all players in the cryptocurrency game. There are a lot more options available than just Bitcoin!
To do trading you want to have a plan of attack in place. You need to figure out where you want to lay all of your funds down. What are the areas of exposure you are willing to take? You likely do not want to just buy into one type of cryptocurrency. You want to spread out the risk across multiple cryptos.
If you have invested 20% of your entire planned amount across five different cryptocurrencies with research, you are diversifying the portfolio. Think about trading cryptocurrency just like you would the stock market! You do not want to lay all of your eggs in one basket. The days of investing in Bitcoin and nothing else are over!
Trade Instantly, From Anywhere
With the brokerage account established and research complete, it is time to start the trading! How to trade Bitcoin involves just hopping on a site like CoinSpot and begin to make requests for buying and selling the cryptocurrencies of your choice. The requests to buy and sell are going to be done very quickly so that you can continue with whatever else you want to do.
You can trade from anywhere as well! You do not need to be on a laptop or a desktop computer. Use your smartphone to make as many trades, all day long. Ever heard of day trading? It is a real thing in the cryptocurrency space as well!
Many have made some fantastic profits over the last few days alone just hopping in and out of cryptocurrencies. If you are extremely confident in a few of them, do not be afraid to hold them for a while. You may see an opportunity for long-term gains if you just rely on your purchased crypto amount. Stick with it! Those that bought Bitcoin a year ago or more are smiling all of the ways to the bank today, and many continue to hold longer!
Cryptocurrency trading is not a scary thing at all! It is effortless, even more, straightforward than trading in the stock market. Use a quality broker site like CoinSpot and enjoy the seamless transactions that are fast and effective. Get involved in the crypto space. So much potential exists and the answer to how to trade Bitcoin is easy. It is not too late to make your mark!