Beginners’ Guide To Bitcoin Trading: Everything You Need To Know

Are you interested in the cryptocurrency market and desiring to learn more about Bitcoin and Ethereum trading right now? Get tips and tricks for this currency!

You might notice there is some good news surrounding the popular adoption of Bitcoin recently: It’s like a dream job made for some fortunate ones who trade bitcoin at home - and that’s how Bitcoin Trading properly sounds like. So do you want to be like them?

You must Set your own hours and do nothing more strenuous than tapping the left-click or watching the display. The work is not easy as expected since a majority of beginners lost their money and completely quit bitcoin trading only within a year. So today, we’ll share you the basics and friendly advice that are enough to get feet wet. Here we go:

What to know about Bitcoin?

Let’s cover the bitcoin basics at first by learning that it’s purely a virtual currency or coin that is exchanged straightforward between 2 parties online without any middle man. Quite different from the modern money, Bitcoin has been recognized as the cash for the Internet while it’s not controlled or backed up by any government authority.

bitcoin trading - Beginners’ Guide To Bitcoin Trading: Everything You Need To Know
Beginners’ Guide To Bitcoin Trading
In other words, they’re actually the pieces of a computer code that stand for the monetary units, and you should know that there are presently 11 million Bitcoins existed. Feel free to send an amount of bitcoins to anyone anywhere else in the world, without the need for banks or any money transmitter.

Besides, the word “blockchain” you may hear repeatedly is exactly a transaction database that can be shared by every node joining a system based on the Bitcoin’s cryptographic protocol.

Another great thing to know, the blockchain technology that is associated with Bitcoin owns several applications - most of them just go beyond any digital currency. And Bitcoin is one of many those apps using this technology - we also have the ethereum that is the second biggest cryptocurrency in the world behind it.

As a new trader who wants to achieve the consistent profitability, do not miss the most vital advantages of Bitcoin trading below:

Most Common Benefits of Bitcoin Trading

For anyone who intends and wants to give it a try in Bitcoin trading, you should be happy to learn how superior bitcoin is as compared to other instruments (stocks, Forex, or commodities), for just a few reasons:

1. Bitcoin’s unique volatility enables for higher percentage profitability with no leverage: As the big price moves, your bread and butter, are just much more common in Bitcoin than any other tool.

Thus, every Bitcoin trader properly avoids the enhanced risk and expenditures of leverage strategies - these ones are designed to draw high profitability from little moves.

2. Bitcoin is the most budget-friendly, fastest and most handy tool to trade: Your Bitcoin exchange rates are usually minimal as compared to the original exchanges and deposits as well as withdrawals that are achieved within hours in every corner of the world.

Less strict requirements for your personal details are claimed to be the norm for your Bitcoin exchanges, especially as deposits or withdrawals are made in Bitcoin.

3. Non-stop Bitcoin trading: 24 hours per day and 7 days per week: We all know that both stocks and commodities usually trade within business hours only and even Forex markets often shut down at the weekend.

Things seem to contrast to the trade in Bitcoin - it remains dynamic around the clock when its volume is still evenly distributed across Asian, American, and European sessions.

How can you start using Bitcoin?

There’s no need for you to master all of the technical ins and outs of Bitcoin trading to indeed begin using it. First of all, you’ve got to set up your Bitcoin wallet on the computer or a cell phone. And it’s fine to use a web wallet in the cloud if you want.

Make sure that some of your Bitcoin wallets on your desktops (also known as the clients) consist of MultiBit, Bitcoin-Qt, Electrum, and Armory. In case you avail a desktop wallet provider online, try to back up the computer on a regular basis.

Note that Bitcoin wallet on your mobile for Android will let you freely utilize Bitcoin to make payments for physical items in stores. They tend to accept your payment by basically scanning a QR code or simply utilizing the NFC tap to play web wallet, like Coinbase for example.

It allows you to avail Bitcoin through any browser or smartphone device along with other extra services, including Bitcoin prices, news, and the capability of purchasing, using and accepting the cryptocurrency.

Bitcoin trading rule of thumb

Amongst online and in-person traders, you will immediately explore, occasionally contradictory, rule of thumb as below:

Purchase low and sell high advocates: Make purchases as the prices go low and selling as the prices are getting high. Of course, though the challenges will arise because of the complete subjectivity of the word “low” and “high”, it’s still the first rule of bitcoin trading.

By selling high, you’ll gain the benefit of selling with the profit even as you’ve just bought high. By purchasing low, you earn the profit of not having to sell at a specific margin. Then wait until that profit get really high.

Bitcoin trading is not just for everyone, so we can make mistakes in our own trade. And though we don’t have to tackle a risk to human lives, losing the bitcoins by making those mistake is surely not a fun situation.

This article will shortly tell you Bitcoin basis and some important things about how to trade it that requires your high attention.