Trading in Bitcoins requires some simple steps. If you follow these tips and tricks, you can easily trade Bitcoins. Since you have clicked on the link to one of my articles, I am sure you are here to learn how to trade bitcoin.
I am a Bitcoin trader myself, and I have been trading in Bitcoins quite frequently for the last three years. And I can quite frankly tell that trading in Bitcoins has been one of the wisest decisions I have ever made in my life.
I am neither condoning Bitcoins nor am making a fuss about its legality. I have had a pretty good experience with Bitcoin trading, but that does not mean that you will have a similar experience too. But I am sure you can start trading Bitcoins after going through this article thoroughly.
So without further adieu, let us start with Bitcoin trading 101.
How To Trade Bitcoin 101
Trading in Bitcoin is very easy. despite the high volatility, Bitcoin has made things all the more interesting for traders Bitcoin faces dynamic price swings every second, let alone every minute or hour. However, do note that Bitcoin is a digital asset that people trade, invest and pay with. It is not stocked. Bitcoins can be used as a fiat currency.
According to the American Government, Bitcoins are treated as a digital asset in the United States of America. The Internal Revenue Service had already made it very clear Bitcoins would be considered as property, and people holding Bitcoins would have to pay hefty property taxes on their Bitcoin holdings.
In order to learn how to trade bitcoin, follow the steps below
1. Choose Your Exchange
To start trading, you need to first select a good and trustworthy exchange. Do note that many fake apps pose as fake exchanges. Kindly make sure you do your prior investigation before selecting an exchange.
If you are really that into trading Bitcoins, then read the reviews of the exchange you have selected. If the ratings and reviews are good, then go with it and if the reviews are negative and the ratings of the exchange is low, then I would suggest not to select it.
There are many reputed Bitcoin trading exchanges, I have personally used all of them on many occasions, and I have found them very smooth with a very eye-pleasing user interface. Some of the best crypto exchanges are:-
2. Create Your Account
After choosing the exchange of your choice, create a trading account if you want to learn how to trade bitcoin. For that creating an account is very important as without creating your account, you will not be able to learn how to trade Bitcoin.
You will be requiring a few documents for creating your account and it needs your identity and address proof for your KYC (Know Your Customer) verifications. You will also be needing to provide your social security number.
3. Select Your Currency
The next most important step to learn how to trade bitcoin is to select your currency. The most used currency on the face of the Earth is US Dollars. US dollars are the most popular among currencies. After having selected the currency, you can start trading. You can start trading from $10 dollars.
4. Get Ready For Trading
Now you have to take the major step of actually trading. To start trading, select the amount of money you want to trade. After selecting it, check out. Bitcoin is not the only cryptocurrency that is available in the crypto market; there are several other cryptocurrencies. You first need to make sure which cryptocurrency you trade.
5. Trading Without Dollars
After you have traded in dollars, now it is time to learn how to trade bitcoin. Now it is time for you to trade without any dollar. The cryptocurrencies you have earned while trading, you can use those Cryptocurrencies to trade with other Cryptocurrencies.
Reasons Why You Should Trade Bitcoins In 2021
The trend of trading Bitcoin has never been more alive. 2021 is the best time to, in fact, trade in Bitcoin. All the credit goes to the Release of Stimulus Packages and the weakening of dollars.
Since March, the Government of the United States has been constantly Stimulus Packages to aid the citizens that were affected the worst due to the coronavirus pandemic, and the Government imposed lockdown.
While this was a very good gesture on the Government’s part, it also meant that more fiat currencies had to be brought into circulation to fill up the void created by the Stimulus Packages in the US Economy. This trend has weakened the US dollar to a huge extent as it led to inflation.
Because of inflation, people living in the United States of America have been trading in Bitcoins. This aggressive trading in Bitcoins has generated a bullish market, and therefore the prices of Bitcoins keep surging. Financial experts have already predicted that Bitcoins are going to reach $100K by June 2021.
Reasons Why You Should Not Trade In Bitcoins
While I have given you the reason to trade in Bitcoins, I am going to be impartial and will tell you some of the reasons why you should not invest in Bitcoins.
Until and Unless you have very strong knowledge of how cryptomarkets work, I would suggest you not trade or invest in Bitcoins. Otherwise, you may end up making huge losses. The price swings of Bitcoins are very dynamic. On average, the price of Bitcoins swings by $1000.
Since Bitcoin is unregulated, no Government will come to save you if you fall prey to the acts of fraud or hacking. Whatever your trade is up to you and the exchange and, of course, the market. You will be solely responsible for the trade.
I hope now you know how to trade Bitcoins. Bitcoin is one of the most lucrative options in 2021. But never go out of your way to trade in Bitcoins, and more importantly, do not go into debt for trading in Bitcoin. Only trade if you have spare capital left.
Martin Tucker is a passionate writer and loves to write on technology, lifestyle, finance, business, and cover all the trending topics. He completed his education at Stanford University and obtained a Bachelor’s degree in Psychology. Now, he is a valuable contributor to Online Marketing Tools, Smart Business Daily, And Emblem Wealth, RSL Online, SB News Room.