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!
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:
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.
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