A Beginner’s Guide to Trading Bitcoin

Jump to page contents

A Beginner’s Guide to Trading Bitcoin

So you’ve decided to start trading Bitcoin? Welcome to the club! This modern form of currency exchange has proven extremely profitable for beginners and expert traders alike thanks to a highly fragmented market with huge spreads.

Its global and volatile nature when compared to other financial instruments and fiat currencies has also helped to make it highly popular with traders.

So, let’s get you off on the right foot. Here’s everything you need to know about trading this digital currency before you’re ready to jump in and start raking in the profit!

Where Can I Trade Bitcoin?

Until quite recently, the only way to get Bitcoin was to mine it yourself. Nowadays however, it’s easier than ever to simply purchase Bitcoin through an online platform called an exchange.

First things first, you’ll need to find a trustworthy Bitcoin exchange to start your trading journey. With so many exchanges currently available online, it can sometimes be difficult to tell apart the good from the shady. One thing to look out for is that the exchange is fully licensed and regulated by a reputable authority to make sure it is safe to deposit your funds.

We recommend CEX.io as not only is this popular exchange accessible to over 100 countries worldwide, but it’s also got the mark of approval from both FinCEN as well as the ICO in the UK. How do you get started? Easy! Follow the below steps:

  • Visit a cryptocurrency exchange such as CEX.io
  • Set up your individual account in less than 5 minutes by clicking ‘Register’
  • After receiving your confirmation email, fill out your details and submit the required verification documents
  • Depending on the types of documents submitted, you may use your credit card or the bank transfer option.

Buying and Selling Bitcoin

Once your exchange account is all set up, you can start depositing funds. In order to get your hands on some Bitcoin, you can buy it directly from the exchange itself using your preferred payment method and currency. The funds should reach your account within 30 minutes.

One thing to consider is that it’s generally safer to keep the majority of your Bitcoin in a ‘cold’ wallet while leaving only a small amount directly on the exchange’s ‘hot’ wallet in order to protect your funds from attempted thefts on cryptocurrency exchanges which have unfortunately become all too common.

When it comes to selling or withdrawing your Bitcoin on the exchange, you must first make sure that your payment method has been verified. After making your withdrawal request, you’ll receive a confirmation email and will be required to use 2FA (2 Factor Authentication) to proceed with the transaction. Keep in mind that processing times depend on your payment option.

With all of these aspects covered, you’re now ready to start making money with Bitcoin. Always remember to take precautions and consider the risks before making any investments since this cryptocurrency’s volatile nature won’t always result in your favour.

For more advice on trading Bitcoin and how to implement different strategies, watch this space for our weekly guides.

Recently Similar Guides

Latest Guides

Bitcoin,Blockchain,Cryptocurrency,Decentralised

What Is A Bitcoin Fork? Full Guide

Bitcoin forks are an important aspect of open sourced and decentralized technology. Bitcoin forks allow users to create new blockchain platforms based off of Bitcoin’s open sourced code, but what is the point? In this guide we explain everything about Bitcoin forks, what they are used for, and why they are important for the cryptocurrency […]

9 September, 2020
Blockchain,Cryptocurrency,Ethereum

What is VeChain?

So, What Exactly is VeChain? VeChain is a platform created using Blockchain technology and designed to improve existing supply chain management and oversight. The platform takes advantage of several elements of Distributed Ledger Technology (DLT) to facilitate the process of origin confirmation and quality mark of a particular product. VeChain is made up of two […]

26 August, 2020
Bitcoin,Crypto Mining,Cryptocurrency,Mining

Hash Rate Vs. Hash Power

Hash rate and hash power are two very important aspects of securing and verifying the transactions on a blockchain. What is the difference between the two? Why are they necessary for proof-of-work verified blockchains? We discuss this and more below. So, What is Hash Rate? Hash rate and hash power both relate to how a […]

20 August, 2020
Bitcoin,Casino,Gambling

Betting in Bitcoin

Since their inception at the turn of the millennium, online casinos have been at the forefront of technology adoption. From mobile gaming to automated verification and the use of virtual reality, the industry is constantly evolving. This is normally great news for players, as most innovation is a step towards a better, safer, fairer, and […]

20 August, 2020
Bitcoin,Casino,Cryptocurrency,Gambling

The Next Big Cryptocurrency

Will There Ever Be A New Bitcoin? Bitcoin is the first iteration of blockchain technology and cryptocurrency to ever be created, and it is also the largest cryptocurrency by market capitalization, worth over 170 billion dollars. After more than 10 years from Bitcoin’s date of inception, there is now well over 5500 unique cryptocurrencies, hundreds […]

10 August, 2020
Cryptocurrency,Trading

What is Futures Trading?

If you ever hear about fictional characters wheel and deal over futures, you must be familiar with the phrases “invest in pork bellies” or “corner the market”. The movie “Trading Places” by Eddy Murphy/Dan Akroyd climaxed over the price of a product most people forgot: frozen orange juice. How can anyone become wealthy on pre-bacon […]

5 August, 2020
Gambling,Gaming,Regulation

The Importance of Responsible Gaming

What is Responsible Gambling? Responsible gambling is one of the most important aspects of playing online as it significantly affects the way players gamble. We’ll elaborate further on this, but first things first, let’s go through what responsible gaming actually is. Not to sound too obvious, but responsible gaming is the act of gaming responsibly. […]

27 July, 2020
Bitcoin,Blockchain,Cryptocurrency,Digital Currency

What is Fiat Currency?

Fiat Currency Definition The definition of a fiat currency is any currency that is established and regulated by a government that inherently has no intrinsic value. While stores of value such as gold are considered money because of their intrinsic value, fiat currency has its buying power dictated to its users by a regulating governing authority. Fiat […]

21 July, 2020