Jan 24, · Steps to follow when trading bitcoin. 1. Find an exchange market. As earlier said, there is no official bitcoin exchange market. So, finding a good exchange market is not an easy task 2. Create account with the exchange market you choose. 3. Start trading. 4. . This article is not a recommendation to begin trading bitcoins. However, if it's something you have already decided you're interested in, it's important to know what you're getting into and how to. If you already own bitcoins, you can start trading almost instantly. In many cases, verification isn’t even required in order to trade. If you are interested in trading Bitcoin then there are many online trading companies offering this product usually as a contract for difference or CFD.
How to begin trading bitcoinHow To Trade Bitcoin For Beginners
So, how do you get your slice of the pie? Well, this guide will help you make your trading decisions. The reason why you should invest in Bitcoin, and cryptocurrencies in general, is because there is nothing quite like it. There are several features that makes Bitcoin trading both exciting and unique.
Binance Jersey allows users to trade euros and British pounds with bitcoin and ethereum and access digital asset management services. Quite similarly, Australian markets lost USD 30 billion. However, Bitcoin was a whole different story. From all these three cases, we can make one simple and obvious conclusion. People have a tendency to invest in Bitcoin when faced with unstable markets and obstacles confronting fiat currencies.
Unlike stock markets, Bitcoin is open 24X7. The reason being stock markets are specific to the country they operate in and usually reflect the working hours of that country.
Anyone can purchase bitcoin on most of the exchanges. Bitcoin and cryptocurrencies, in general, are infamous for its rapid and frequent price movements. This volatility can help traders make an easy, quick buck. Before you invest in an asset, you should at least know how it works. We have covered the mechanics behind the crypto several times here in detail. However, for the uninitiated, we will give a brief overview. If you are already aware of the mechanics, then please skip to the next section.
The blockchain is a time-stamped series of an immutable record of data that is managed by a cluster of computers not owned by any single entity. Each of these blocks of data i. Ok, so what does that mean in simple terms? Imagine a universal ledger that anyone can download and write into. Anybody who has a copy of that ledger can:. That is what Bitcoin gave to us, the first proper implementation of a technology that can act as an immutable and transparent ledger.
This innovation gives us a system that is completely incorruptible and free from human corruption since each and every transaction made into the blockchain can be checked. Through public key cryptography. Every Bitcoin user has a private key and a public address that are both mathematically derived from each other. So, how does it work? It is actually pretty straightforward.
The public address is like your account number and the private key is like your PIN code When you receive Bitcoins, people will send it to your public address. You can then send your Bitcoins to anyone via your private key.
So, going by that explanation, we can make two observations:. This should give you a brief idea of what Bitcoin is and how it works. This is the reason why Bitcoin has become such a big deal. The exchange serves as one of the most critical functions in the crypto ecosystem.
It acts as a portal between the Fiat world and the crypto world. A cryptocurrency exchange is similar to a stock exchange, but with a focus on cryptocurrency tokens rather than stock trades.
Put simply, a crypto exchange is a platform where customers can buy and sell cryptocurrency assets. Broadly speaking, there are two forms of crypto exchanges:. Fiat to Crypto exchanges helps you buy Cryptocurrencies in exchange for Fiat money.
These exchanges have been designed to be as beginner-friendly as possible. Kraken and Coinbase and Bitbuy are perfect examples of fiat-to-crypto exchanges.
Binance is a fine example of a crypto-to-crypto exchange. These are the exchanges that are geared more towards the experienced traders than the beginners. Crypto exchanges deal with an insane amount of money on a daily basis. In fact, check out how much the top 5 exchanges ranked according to transaction volume in the last 24 hours measure up:. So, where exactly do you get started? If you are Canadian then the answer is pretty straightforward. Bitbuy is a Canadian owned and operated digital currency platform.
Founded in , Bitbuy has consistently provided Canadians with a dependable and trustworthy platform to buy and sell their cryptocurrencies. As already explained, Bitbuy was a fiat-to-crypto exchange where you can deposit Canadian dollars directly onto their website, to be exchanged for digital currency. Their headquarters are located in Toronto, Ontario and their services are available for Canadian traders across the country. Another interesting feature of Bitbuy is that there are no fees for withdrawing your cryptocurrency.
You can send your crypto to a private wallet , free of charge. A Complete gamer and a Tech Geek. Brings out all her thoughts and love in writing blogs on IOT, software, technology etc. Public IP: General Privacy. How to start Bitcoin Trading — A step by step guide. Why trade bitcoin?
Bitcoin is very volatile Bitcoin prices are well known for their frequent and rapid movements. Bitcoin is not affected by external factors Bitcoin is not like other currencies that are traded online, meaning its price is neither determined by the status of the economy nor politics of any given country.
Find an exchange market As earlier said, there is no official bitcoin exchange market. So, finding a good exchange market is not an easy task because choosing one requires considering factors such as: Location — you must select an exchange market that nears you for the purposes of depositing fiat currency as well as an exchange market that accepts bitcoin payments in your own country.
Liquidity — to become a successful trader, you need a bitcoin exchange market with high liquidity and in-depth market penetration. Trust — the exchange market should be trustworthy. Search for those market that has existed in the market for quite some time.
At least you are protected against frauds while trading. The market trade about 25, bitcoin traded per day, therefore, making it the first bitcoin exchange market regarding USD. It has it market trading 10, bitcoins per day. It is currently the second largest worldwide market based on US Dollars volume. Create account with the exchange market you choose Every exchange market has it guidelines to open an account with them.
The most common are: i: Create account ii: Verify the account using your personal email iii. Once the account is confirmed, you log in to verify personal information iv: Once verified, you head over to funding v: Deposit your cryptocurrency 3.
Analysis You need to understand more about bitcoins since it is not like a company or stock, rather a computer network for creating and exchanging money. Risk Management Because the bitcoin trading is new and exciting, you have to focus on money management strategy.
Scams to watch out while trading Ponzi scams They are more of high-yield investment programs, with high interests than the prevailing rates. Bitcoin mining scams There are companies seeking for payments to mine bitcoin for you.
The current financial system is secured by laws which will always contain loopholes. All payments are made person-to-person without having to rely on any company. You control your own money. The Bitcoin network is decentralized : The digital currency is decentralized in the same way as the internet.
Bitcoin is more fair because no single group can control or manipulate it. Protect your money against inflation : Perhaps the biggest advantage of Bitcoin is that your money is protected against inflation. Bitcoin has a limited supply to preserve the value of your money. It is important that you read the security information! Get a Bitcoin Wallet A Bitcoin wallet is needed to receive and send bitcoins.
Secure Your Bitcoins Have you bought Bitcoin? Enter amount many wallets automatically convert the bitcoin price to normal currencies. Make sure the address and amount are correct. First of all, you need to know that Bitcoin transactions cannot be refunded. In that way, it works like digital cash.
Bitcoin offers more freedom but at the same time more responsibility. Secondly, a Bitcoin transaction is only valid if it has been confirmed on the network. To complete a large transaction, we recommend that you wait for 6 confirmations to be on the safe side. The number of confirmations is usually displayed in the wallet or exchange.
Bitcoin is pseudo-anonymous. This means that you can send and receive money without having to identify yourself. However, if your identity is linked to a wallet, you can map all transactions to it.
All transactions are stored in a shared ledger and users can either be public or anonymous. There are many different types of Bitcoin wallets to choose from. But if you are serious about Bitcoin and want to protect your money properly, you should buy a hardware wallet. This is the safest way to protect and store Bitcoin. Read more about Bitcoin Hardware Wallets. There are hundreds of different cryptocurrencies and even more exchanges.
Firstly, there are many unreliable exchanges that are not secure. Second, never store Bitcoin at an exchange, but instead transfer them to a private and secure wallet. At the end of the guide, we have listed popular exchanges where you can easily and safely buy Bitcoin. Read more about Bitcoin Exchanges. Buy Bitcoin! Frequently Asked Questions Is your question not answered here? Let us know! What Is Blockchain Technology?
Is Bitcoin Safe to Use? Who Controls Bitcoin? Is Bitcoin Legal? Bitcoin Cryptocurrency Wallet. Join The Discussion!
Chris B. This is a great guide, thank you! Very informative and straight to the point. CryptoRunner Team on March 13, at pm. Thanks Chris, happy to hear! Krypto Pan on May 10, at am. An article very helpful for new users. Everything in one place. You could also mention or link an article about bitcoin scams to warn new users.
CryptoRunner Team on May 15, at pm. That is a good idea, our writers will soon update this guide. Paul Dzukwa on October 20, at am. This is a real guide to the beginners. Do you trust those people who advertise on Facebook?
CryptoRunner Team on October 22, at pm. You should always make a comparison before you make your decision! Reuben Duodu on October 29, at pm. So how to create my own Bitcoin account? CryptoRunner Team on October 30, at am. Let me know if you have any questions! Kayiira Johnchrysostom on November 15, at pm. Uganda is not in the list of states and I want to join what can I do. CryptoRunner Team on November 18, at pm. Hello Kayiira, If you live in Uganda, we would recommend using Coinbase.
Olalekan on December 15, at pm. How do I open a bitcoin wallet and start with bitcoin? CryptoRunner Team on December 16, at am.
BTC on December 16, at pm. Thank you for these details, it is very interesting, So once again, much appreciated! CryptoRunner Team on December 17, at am. Hello am a new beginners please were can I get free bitcoin for a start. Thank you. CryptoRunner Team on December 25, at pm. Darren Fogarty on January 21, at am.
CryptoRunner Team on January 25, at pm. Hello Darren, I understand because the bitcoin price moves up and down every day. Louis on February 10, at am. CryptoRunner Team on February 10, at pm. Hello Louis, We have updated the guide with step-by-step buying instructions above! Sandra crawn on July 6, at am.
CryptoRunner Team on July 10, at pm. Hello Sandra, The bitcoin price goes up and down every day. Dammy Badu on July 29, at pm. CryptoRunner Team on July 29, at pm. Hello Dammy, Thanks for your comment! Samuel Adeshina on August 1, at pm. CryptoRunner Team on August 3, at am. Hello Samuel, This is a common question from new visitors.
Prisca on September 10, at pm. CryptoRunner Team on September 11, at am. Hello Prisca, I understand and know that bitcoin can be confusing. Wihara Kris Villahermosa on September 15, at am. CryptoRunner Team on September 15, at pm. Hello Wihara, We get this question a lot! Megan Alder on September 28, at pm. CryptoRunner Team on September 29, at am. Maggie B on November 27, at pm.
CryptoRunner Team on November 30, at am. Hello Maggie, Thanks for your comment. Leave a Reply Cancel reply Your email address will not be published. Related Guides. Zcash vs Dash Top 3 Crypto Exchanges. Zcash vs Ethereum Top 3 Crypto Exchanges. Trezor vs Ledger Top 3 Bitcoin Wallets. Risk Disclaimer: