Start a bitcoin exchange An exchange is where buyers and sellers conduct their business. A bitcoin exchange is a digital marketplace where traders can buy and sell bitcoins using different fiat currencies or altcoins. Bitcoin exchange platforms match buyers with sellers just like a traditional stock exchange. Bitcoin trading is the process of buying and selling bitcoin to make a profit. On the other hand, investing is the act of buying Bitcoin and keeping it for a long time like stocks and shares and relying on its appreciation of the investment until it is eventually sold. Oct 23, · 1. Bitcoin Trading vs. Investing. The first thing we want to do before we dive deep into the subject is to understand what Bitcoin trading is, and how is it different from investing in Bitcoin.. When people invest in Bitcoin, it usually means that they are buying Bitcoin for the long term. In other words, they believe that the price will ultimately rise, regardless of the ups and down that.
Start a bitcoin trading businessHow To Invest in Bitcoin - Getting Started Guide ()
People who invest in Bitcoin tend to believe in the ideology, technology and in the players that are behind the Bitcoin currency. Bitcoin business is speculative such as the business of trading in shares. The business of Bitcoin is easy to start since the barrier to entry is very low. The reason why you should go into Bitcoin trading business may be as follows:. It only reacts to world events, political or economic that is serious enough to affect it.
The Indian government demonetized the currency by stopping Rs. But in the case of Bitcoin, it was a different ball game. Bitcoin is open 24X7, unlike the stock market that is being time regulated. The stock markets must dance to the tune of the authorities in which country it is located and usually reflect the working hours and days of the week of that country. Investors can purchase Bitcoin on most exchanges around the world any time any day, seven days a week.
Bitcoin is famous for rapid and frequent price fluctuations and as a result, traders can leverage on this price volatility and make an easy and quick profit. It only takes a couple of minutes to get registered and you are trading already once you have provided some funds.
By creating an IG CFD trading account, you will be able to participate in a financial arrangement trading on Bitcoin in which you are not going to own the assets Bitcoin currency but the contract is essentially on the Bitcoin price variation. So to trade on Bitcoin, it is mandatory to open an account as well as providing some funds to trade on. Your transactions will be based on the funds provided; the profit or loss you make will be to the extent of the funds at stake.
Decide on your trading plan and strategy. The bottom line of your plan is profit and to be able to make a profit, you must achieve your objective. Your trading plan is essentially going to help you make informed decisions. As a newbie to the markets, you should have both a strategy and a plan.
The plan is like a roadmap to follow to reach your goal while a strategy is a way you have designed to achieve your profit objective. I would like to list some tips on how to plan in the hope of assisting you to trade professionally in Bitcoin and make a reasonable profit;. Set out measurable and specific objectives you want to achieve from your trading, to be broken down into short and long term goals. Decide on what your acceptable risk level from each trade will be, and in specific terms how much you are going to stake in the overall risk.
Decide on the risk-reward ratio you want to see, this will help you know in advance how much potential profit you need to make to justify your potential loss. Select which markets you want to trade first; whether you want to begin with just bitcoin, and later expand into cryptocurrency or both at once? Before you go into trading proper, you must understand how Bitcoin trading works so that you will be able to know and follow what goes on in the exchange market.
If we try to understand the technology and its underlying principles, it is right to say that the price will keep rising over the years to come. One of the major reasons for the claim is the finite amount of Bitcoins , making it a great store of value only 21 million Bitcoins and viral adoption around the globe.
If you are ready and excited to invest in Bitcoin, this guide will help you get started. Treat this as a blueprint for Bitcoin investment. Do customize it according to your current financial situation that suits your needs.
These two are must-haves to get started with. Under no circumstances should you miss the understanding of the correct website and a safe wallet, or you might fall prey to some MLM Multi-level Marketing or scam, resulting in losses.
What you need to understand is Bitcoin is like keeping money with you. And you are responsible for buying, selling and securely storing it. And In the coming days, you would also learn how much money you should invest in Bitcoin.
You can quickly sign up for these exchanges and transfer money from your bank account to buy Bitcoins. However, the problem is for people residing in countries where there are no Bitcoin exchanges and users have no option of transferring funds from their bank accounts to purchase Bitcoins. This makes it really hard for the users to hold Bitcoins now and with the prices surging at a rapid pace, it might be too late for many to get hold of Bitcoins.
Initially, when it was not as easy to purchase Bitcoins in my country, I used a credit card to buy Bitcoins from Cex.
This worked pretty well as the Bitcoin price difference between the International market and in my country was significant. Another method that works for most countries in the world is a P2P exchange. Think of this P2P exchange as eBay where you connect directly with the seller to purchase Bitcoins. As we discover new working methods, we will keep sharing it on CoinSutra. This will take care of our 1. Note: If you are in a country where you have no option to buy Bitcoins, do let us know in the comment section below.
We will do our best to find a solution for you. If you search online for Bitcoin wallets, you will get plenty of options but you need to be careful with choosing the right one.
With many wallets being a fraud, you will end up losing your Bitcoins. Another big mistake that even experienced users make is by keeping the wallet in an exchange. The problem with holding Bitcoins in exchange is if tomorrow one of these exchanges shut down, you would lose access to your Bitcoin.
This has happened in the past, and it may happen in the future. These exchanges are safe, but they should not be used as a wallet. Since very few countries in the world are working on the regulation of Bitcoin and Cryptocurrency in general, these exchanges can be shut down.
This happened in China sometime in September Exchanges are also at risk of getting hacked and you might lose your Bitcoin if you store it on an exchange. You can read about the biggest Bitcoin hacks here.
As I mentioned earlier, Bitcoin is not like a typical currency that you keep in your bank. This is done by having the ownership of seed word or private key. For the first-timer, it may sound very technical, but it is actually easy to understand and learn.
To simplify your understanding of Bitcoin wallet security, you just need to use a well-recognized wallet that lets you, and only you, keep the seed words. This seed word is the password for your Bitcoin. Even if you lose your phone or hardware wallet , you can recover your Bitcoin using the seed words. We have a few dedicated resources for understanding this.
Here are a few hand-picked articles for you to learn everything about Bitcoin wallet seed word and private key:. The challenge with the mobile app-based wallet is the security that is partly dependent on the security of mobile OS that makes it not so secure. The same is the case with the desktop-based wallet. The most secure way to keep your Bitcoin in a hardware wallet.
If you are someone storing more than 0. It takes a few weeks to get delivered as the demand is very high. If you are starting now, you can use a mobile wallet to store Bitcoin and later transfer the Bitcoins to a hardware wallet. If you need Bitcoins for daily use and need to store a smaller amount, you can use a mobile wallet such as Atomic wallet. There is no lower or upper limit as such in Bitcoin. Your country determines from where you should buy Bitcoin. There is an exchange called Binance which is idle for everyone to invest in Bitcoin.
Users from India could buy from Wazirx. Using a Bitcoin hardware wallet is the best way to store your Bitcoins. Yes, Bitcoin is worth investing even in Bitcoin has been a high-risk high reward investment until now. As suggested by many professionals, you should invest only that amount in Bitcoin, that you are ok losing.
I hope this guide helps you clear your doubts about investing in Bitcoins. In the coming days, I will share more tips and ideas about Bitcoin investment. You can also ask questions and start a discussion in our Bitcoin and Cryptocurrency forum.