With the world rapidly evolving into the digital era, Bitcoin trading has gained popularity. Bitcoin ( also known as cryptocurrency ) is an online form of currency that is free from any government's control . It is not linked to banks and therefore all transactions are carried out online . Bitcoin trading is simply the selling and buying of bitcoins. Bitcoin transactions are tracked and several circulations of the bitcoin form a block. These blocks are used to ensure that the trade is secure and that it is transparent as every transaction is available in the net but personal details kept private and encrypted.
The first step to this form of trading, just like in all other trades, is to acquire the currency first. The currency used for bitcoin trading is bitcoin, which can be bought using fiat currencies such as US dollars, Chinese Yuan, Euros and other currencies. You can buy bitcoins on many online platforms and apps that provide bitcoin buying and selling services as well as online wallets to hold your acquired bitcoins. These platforms and apps include: CoinBase, ShapeShift, CoinExchange, Bitsquare, Kraken, Robinhood, Squarecash, Binance, and many more that you can find once you Google.
Take a look at CoinBase as our example on how to go about it. Visit the website of the app you choose, create an account, log in and purchase your bitcoin. They offer the chance to buy bitcoins even for those with a limited budget . For as low a dollar you can get some bitcoins and start your bitcoin journey.
Next is learning the basics of bitcoin trading . Bitcoin trading is volatile, meaning that it is prone to daily price fluctuations.Traders dealing in this trade rely on news and a study of bitcoin price charts to enable them to plan and execute their moves. To help them in making these studies, techniques such as the OHCL (Open High Close Low) graphs are used as well as the Bull and Bear method. Basically what happens in bitcoin trading is traders and other investors buy bitcoins when their price when bought using fiat currencies is low. They later sell them when their selling price using fiat currency is high in this way making a profit .
Trading in cryptocurrency works just like how auctions are carried out. The person who offers to pay the highest for the bitcoins is the one who gets them . In this way this decreases or increases the value of bitcoin in the trade . If there are many buyers willing to pay high amounts of fiat currency for bitcoins then it's value appreciates . On the other hand when those willing to buy bid at low prices then the value of bitcoin reduces .
Bitcoin trading has several niches for different traders and investors. Those who are not willing to take risks therefore they invest only a little and after getting , there are those looking at bitcoin trading as a long term investment so they invest a lot and don't sell it for a long period of time . There are also those who look to gaining fast money so as soon as prices hike they quickly sell what they have . Bitcoin trading follows the patience you have or the amount of money you are willing to put into it .
Volume in bitcoin trading means the number of bitcoins traded in a given period may be one week or one month. It assists those in bitcoin trading to study and identify trends in bitcoin prices in the market. All the transactions made through bitcoins on a trade app such as CoinBase are found in the order book .
Common mistakes commonly made in cryptocurrency trading are: Investing too much, such that it can fit your budget, lacking to track price trends when making purchases or sales, and being 'gluttonous' by wanting fast and big money.
It is advisable to ask for financial advice from experts when looking to invest your money in online platforms. Get clear information on the app you choose to use in your bitcoin trading and digital wallet before embarking on the journey of bitcoin trade. Most importantly, never leave your cryptocurrency in digital trading apps because you never know what might happen, it may fall and fail to function and you lose your bitcoins.