With the world of cryptocurrency and Bitcoin gaining the spotlight, traders and investors seem to have taken a liking to it. The number of these digital currencies is steadily rising along with the market. However, Bitcoin has still retained its position as the most popular one. With an enormous market cap, it is no wonder traders seem to interest in its trading.
However, the volatility coupled with unpredictable price fluctuations can cause doubts and wariness. Despite that, the prospect of garnering a substantial amount of wealth entices both traders and investors. Even if you have never indulged in any kind of trading, you can still enter this market.
But, if you are a beginner, it is better to start with Bitcoin. You will find a plethora of information, and it will give you the much-needed confidence.
Bitcoin trading: 6 easy steps
The stress and the anxiety involved with sudden price crashes and corrections can shake up even the most determined traders. You must be sure that you want to start Bitcoin trading. Here, patience and perseverance will play a major role.
Check out the steps listed here so that you can start Bitcoin trading right away.
Step 1: Research the market extensively
The only way you can start Bitcoin trading is if you have the bare minimum knowledge of the market. Sure, you might be thinking that using an automated trading platform will solve the issue. It might, but it will never benefit you in the long run.
If you don’t understand the market, then it is impossible to make profitable decisions. Guesswork and luck can only favor you to a certain limit. After that, it is research that will come to the aid. You must shell out some time from your schedule and dedicate it to studying the market.
For this, you can take the assistance of video tutorials or read through the blogs from experts. After some time, you will be able to interpret the technical charts and indicators with ease. With the use of artificial intelligence technology, the news spy platform analyzes crypto related developments intensely in the market. AI enables millions of trades to be analyzed in no time and provides really useful insights about the markets.
Step 2: Assess your finances
After you have adequate market research, you must take a look at your finances. This is vital because you need to know if you actually have the amount that you want to invest. You must never risk the money that could cause you financial woes.
In essence, don’t touch the emergency account and save money for at least five years. The remaining amount is what you can invest. Another thing that you must understand is your trading goals. Different people have varied reasons for Bitcoin trading. You need to know yours and then proceed accordingly.
If you want to be in this market for the long-term, you will need to know about the terminologies, strategies, and more.
Step 3: Choose a suitable Bitcoin trading platform
Now that you have determined your budget, you must select the right exchange platform for Bitcoin trading. This can be a little tricky as there are numerous such trading platforms. However, you must choose the one that is legit and reliable.
For this, you must take into account several parameters. Some of these include the experience of the platform, their reliability, the kind of support they offer, and the cryptocurrencies they deal with.
Moreover, make sure that you check out the reviews and see what the experienced traders have to say. Also, check out the commission fee that the platform charges. Just to be safe, start with a small amount, and then when you are convinced fully, you can trade in large volumes.
Step 4: Open an account
After you have made a decision regarding the selection of the Bitcoin trading platform, you must open an account. It is a simple process that requires you to follow specific instructions on the platform. They will ask for some private information like name, phone number, etc.
After that, you will have to wait till your account is verified. When the verification is done, you must deposit the minimum amount required. Then, you can start trading right away.
However, it is advisable to devise an efficient trading strategy and understand the market a little bit more before you make any decision.
Step 5: Start Bitcoin trading
After that, you can start trading on the platform. Most of the crypto trading exchanges offer a wide range of features.
For instance, features include stop-loss orders, limit orders, market orders, etc. This makes trading much easier than before. Make sure that you customize the setting as per your trading plan. Then, you can make the first move and start trading.
However, most of the trading platforms nowadays offer the automated trading feature. Here, you can skip out on the in-depth research and instead rely on the bot. With a sophisticated and complex algorithm, the bot assesses data and offers detailed reports. You can then use it to make lucrative trading decisions.
Step 6: Select the right storage
Have you recently made some profit from Bitcoin trading? That’s great! But, the first thing that you must do is transfer it into a cryptocurrency wallet immediately. When you make that transfer into your wallet, you can be assured of safety as only you have possession of the private key.
But, if you keep the money you profited on the exchange platform, you will be taking a big risk. You never know when it can get hacked or go offline.
There are mainly two types of cryptocurrency wallets. These include – hot wallets and cold wallets. In the case of a hot wallet, your private key is stored on devices that are connected to the internet. However, in cold wallets, the private key remains on devices that have no connection to the internet.
One of the most efficient ways to generate net worth is Bitcoin trading. Here, there is the scope of garnering a considerable amount of profit. However, you must also understand the risks and make appropriate risk management plans. Furthermore, constant research about the market is crucial. If you want to be a successful trader, you have to be active and take losses along with profits.