Bitcoin trading: How to trade Bitcoin safely without losing control
The crypto industry is creating a significant opportunity for many investors who intend to diversify their resources. Many crypto enthusiasts are discouraged by the complex processes and ever-changing sector as they desire to join the action.
In this article, we will address some of the basic concepts on how you can buy and trade your cryptocurrency with much ease.
However, cryptocurrencies and mainly Bitcoin fluctuates in prices quickly. Thus, if you make a wrong move or you don’t know when to trade, you may incur losses. Whatever the case, your risk tolerance level and strategies can help you thrive in the highly volatile market whether on a short-term or long-term basis.
Bitcoin is the initial cryptocurrency under the Blockchain tech and trading at $56,424.50 at the time of writing. Regulated crypto trading platforms such as Bitcoin Revolution will help any investor buy and sell Bitcoin easily.
Let’s explore further to understand the process.
Choose a Bitcoin wallet
The first step is to identify the suitable digital wallet that will store your Bitcoin assets. Just like a bank account where you store your fiat currencies, you need a digital wallet to secure your cryptocurrency.
There are many wallets that you can choose from such as online wallets and offline wallets. For the most part, Online wallets require an internet connection making them prone to security-related risks. When using an online wallet, you need to add other security protocols like two-factor authentication.
On the other hand, offline wallets are considered much safer because they don’t require any internet connection. For example, a paper wallet involves writing down the private key on a physical paper and keeping it in a secure location.
Select the crypto exchange platform
When you choose a suitable wallet, you need to select a reliable crypto exchange platform. The crypto sector has seen the emergence of many exchange platforms over the years with different features. There are several factors to consider before deciding on a reliable platform and they include:
If you plan on using a credit card, it’s a wise move to confirm with your card provider. One reason is that several credit card companies may charge a transaction fee when buying Bitcoin, which can affect your wallet balance.
Also, transaction fees vary from one crypto exchange to another. By confirming fees before buying Bitcoin can appear economical wise.
The withdrawal feature is a key factor to consider. Some exchanges enable traders to withdraw their funds and receive them within a day while others run a 72-hour policy. Still, you may come across an exchange that can take you in circles when you wish to withdraw your amounts.
Another important aspect is the security measure. The crypto sector is encircled by risk factors like cyber threats. You should carry due diligence and rely on an exchange that has demonstrated better security measures over the years.
Get an account
After you have determined the best exchange, register to get started. The registration process is easy and completely free to anyone. Based on many platforms, you’re required to provide a few details such as name, email address, contact number, and password. Clicking on the verification email will see your account activated within seconds.
Fund your account
Following a successful registration, the system will connect you to the underlying broker who facilitates deposit payments. For instance, the initial amount you can pay to trade on Bitcoin Profit is around $250. You can use various payment methods such as Paypal, Visa, Mastercard, or a bank transfer to make the deposit. The amount is processed quickly into your account and you can begin trading.
Start to trade
The initial amount in your account will help you to buy Bitcoin. Also, you can choose to live trade by buying and selling your Bitcoin portion when the price fluctuates to make an extra profit. However, you have to employ strategies and a stop-loss limit to avoid running into losses. In addition, you need to do your research and know when and when not to trade as you can buy Bitcoin only to plunge by a large percentage.
Cryptocurrency prices can surge or plunge at any given time or day. For example, your Bitcoin portion can record a price momentum of $400 today, and you can wake up the next week to find it quite worthless. Therefore, committing resources like time or cash to learn the trading concepts can come in handy in the long run. Moreover, you can rely on other relevant materials to boost your skills and achieve a successful journey in the crypto sector.
Trading is considered a process you have to learn each day. You can day trade or seek a long-term venture, but you have to dedicate quality time and understand ways on how you can protect your Bitcoin assets from any security-related threat.