Step by Step Bitcoin Trading Guide
Bitcoin is a very profitable investment if you can do it right. Investing in bitcoin is now compared with the asset class investment. With its increased demand number of bitcoin exchanges is increasing, facilitating easy investment procedures. Websites quantum-ai.trading and applications made it even easier to trade bitcoin. But, before you start trading bitcoin, make sure that you ask a few questions yourself.
- Do you understand the bitcoin market clearly?
- Are you aware of its risk factors?
- Do you have a risk appetite?
If you have all your answers positive, you can go for it. Bitcoin trading is very easy with a few steps.
1. Find a good crypto exchange: The first and foremost thing is to find a good bitcoin trading exchange. This can be difficult for you if you don’t have enough knowledge. So, while finding a good exchange,you have to be careful about a few things.
- All the bitcoin exchanges or crypto exchanges do not follow any guidelinesas the government does not control them. This can lead to fraud. So, make sure that you read their guidelines when you choose an exchange.
- Check the reviews online. Read about them online. Choose after your research.
- Find the address of their office that must be given on their website. Try to choose the nearest one so that you can visit and check if they exist or not.
2. Register yourself: Once you find a good bitcoin exchange, you must register with them. They might ask for some ID proof to get the verification process done here.
3. Open your trading account:The moment you are registered, a bitcoin account will be from where you will do the trading. The good thing here is crypto exchanges are open 24*7.
4. Link bank account: In this step, you will link your bank account with the trading account to get the initial funding.
5. Provide funds to your account: Now, you need to transfer some funds from your bank account to the trading account to buy some bitcoin. Remember not to put all your life savings into here. Experts suggest only 5% of your savings for bitcoin investment.
6. Purchase bitcoin: You can buy bitcoin with the fiat money that is available in your bitcoin account.See the market price and the price offers you are getting on the exchange and buy accordingly.
7. Store your bitcoins: When you purchase bitcoin, it’s important where you are storing them. You store them in bitcoin wallets. There you have two options. Hot wallet and cold wallet.
- The exchange or any other provider sometimes provides a hot wallet. For that service, they might charge some extra fees. But, there is a certain chance of hacking if the agency gets hacked. You store your fund protected with a password.
- A cold wallet is more like hardware. But, investing in buying hardware for a cold wallet might be expensive. However, a cold wallet is safer thana hard wallet.
8. Sell your bitcoin and make a profit: Once you have your bitcoins in your account, it is time to sell. But, before that, make sure to study the market. If the bitcoin price is higher than your buying price or you are getting a profitable deal from a buyer, depending upon what platform you are using,then it is the right time to place a sell order. For that, you must go ahead with the sale option. Then select the right account where you want to get the money in the deposit section. There might be some holding period before the transaction takes place. You should wait for the holding period. By that time, you can make as many sales as you want. Collect your money after the transaction is over.Some platforms offer direct selling to the buyer.Such a platform is the Bitcoin era that has gained investors’ attraction in recent days. There, you offer a selling price. If both the parties are agreed, transactions can be executed.
Now, you know how easy bitcoin trading is. So, follow the steps and start your investment. Crypto investment is a rewarding experience, but only if you know the right ways.