Trading in Bitcoin is challenging and exciting. It has never been easy to trade in an intangible currency, but the risks involved are big as well. You must have a clear understanding of how Bitcoin works before you can start trading your money for profit.
Bitcoin works on a technology called Blockchain which was developed by Satoshi Nakamoto – The creator of Bitcoins. As mentioned earlier, BitIQ reviews have an intrinsic value just like gold does, but it’s not a physical property that can be touched or felt. Then why is there so much craze surrounding cryptocurrencies? Well that’s because the blockchain technology ensures safety and reliability when it comes to transferring money online. People believe this groundbreaking technology will change the world we live in forever and they might be right!
There are a few things that every Bitcoin trader must know before they start investing their money. Keep these simple but critical tips in mind and you would rock your investment:
1. Never invest more than you can afford to lose
Investing in Bitcoins is not like putting your cash under the mattress, it’s an investment decision that should be made with careful consideration. You should never convert all of your savings into Bitcoins because there is still room for loss which might be unrecoverable. If you want to put some money in Bitcoins, do so carefully and ensure you can bear potential losses without turning to much emotional about it. This will help keep panicking out of the chart when prices go really low or high suddenly.
2. Keep Bitcoins in wallet!
There are few locations in the world where you can buy something in Bitcoins, but there is no locations in the world where you can use it to pay for your bills or anything that require cash. You need to convert it into cash using some credit cards or via bank transfers. Once someone has their hands on your money they will not return so easily unless you take action against them! If you keep your digital currency with an exchange site like Coinbase, Kraken, Bitstamp etc. then they have full control over your virtual money which means they can be hacked or go out of business any time and take all of your bitcoins with them.
Remember: Your bitcoins are only safe when you control private keys!
3. Always do your homework before investing in Bitcoins
Bitcoin is a very competitive market and it requires constant research to ensure you always stay on top. Use different websites like Coinmarketcap, Bitcoinity or Cryptowatch for price and network data and use Google trends and Reddit Sportsbook for related news. You should learn how to read candlestick charts as they can help you make more informed decisions when buying Bitcoins during an uptrend or downtrend.
You need to find out whether the exchange site you are dealing with is legal or not by contacting local authorities such as the Financial Crimes Enforcement Network (FinCEN). Also, learn about the reputation of that website from its community so that you don’t get involved in a fraud deal.
4. Be patient!
Trading in Bitcoins is no different than what you experience in the stock market, but this time there are no limits or regulations to guide you. You might end up losing all your money or doubling the amount overnight depending on the risk-return tradeoff that you made while placing a buy or sell order. Always try and be patient when it comes to cryptocurrency trading because if do not get tempted by quick bucks then over time you would see consistent profits from your investment without having to starve for information about market movements.
5. Invest only what you can afford to lose:
Keeping few points in mind already we come towards our last point which is to never invest more than we can afford to lose. It’s no secret that the cryptocurrency trading has high risk involved, but with proper planning and practice you can minimize this risk to your barest minimum. One of the most important things is to never get emotionally attached to an investment because it will harm your decision making process when the market moves in unexpected directions. Always ensure that you sell an asset if its value falls by 80% of the original purchase price which you had paid for it. If there are any profits made from the sale make sure you put them back into another profitable venture like buying more Bitcoins at lower rates!
How to Trade Bitcoin
If you want to get into Bitcoin trading. And I want to earn some extra bucks. You may be interested in understanding the trading mechanism. We will explain some basics you need to know about trading Bitcoin. You should know the process of selling and receiving the money you need for Bitcoin or another cryptocurrency. Note that this method can be used for many different digital currency options, but most of the traders use the Bitcoin exchange, there are different methods to do trading and many bitcoin trading platforms. Do some research and learn about trading. You will be able to select the best method that suits your needs.
Bitcoin Trading Exchanges
The easiest method of investing and trading your bitcoins is through the internet-based exchange. The registration process is simple and you can make use of a versatile bitcoin trading application that is available for use on Google Play for Android devices similar to the AppStore for Apple iOS devices. It is important to note that you can simply withdraw money from a previous account that was used to reserve a quota at any time before. If you have never taken this way before in the present, we suggest that you buy small amounts of digital currency that you will eventually trade, and then withdraw the funds. This is essential for the verification of bank accounts, as well as an initial security effort to prevent money laundering.