Did something get you interested in Bitcoin? You’re thinking to trade them. But you don’t know where to begin from.
Don’t worry. This article has you covered. Hopefully, if you’ve thought about trading Bitcoin, you know something about it too.
But if you don’t, it’s okay. Here’s a little primer on it:
Simply put, Bitcoin is a type of digital cryptocurrency and operates on a system of blockchain. You can buy it from cryptocurrency exchanges, which are similar to banks.
Step 1- Open a Bitcoin Wallet
The first step to begin Bitcoin trading is to open a Bitcoin wallet. Coinbase is a popular and widely example of an exchange where you can open a digital wallet. A wallet helps you to make transactions by maintaining a private key and public address.
Step 2- Sign Up to Create an Account
The next step is to make an account on Coinbase or any other Bitcoin exchange. Click Sign Up and you will be asked for your information:
- First Name
- Last Name
Be sure to click Individual if you’re the only person making the account. After filling in this information, click the button to agree to the Terms and Conditions.
Your account is set up.
Step 3- Verify Account
You now need to verify your account. You will be given an option to either verify from a phone number or text message notification.
The next sub-step is to add a payment method. You can choose to make payments through your credit card, bank account or direct transfer.
Now you have signed up and verified your account, you can begin trading.
Step 4- Buy Coins
You can begin by buying coins on Coinbase.
Step 5- Strategize Your Trading
Now that you have bought coins, you need to plan how you trade. There are 4 common types of trading of which you can choose one or a combination of two.
- Automated Trading Bitcoin. As the name suggests, a bot helps you make automatic decisions when to buy and sell.
- Scalping Trading Bitcoin. This strategy is for small profits by sensing a small price change.
- Swing Trading Bitcoin. In this strategy, the trader buys bitcoins in the hopes that they will increase in value. This may take anywhere from two days to two weeks.
- Day Trading Bitcoin. This is usually a short-term strategy meaning that you buy and sell the same day depending on the price fluctuations
The Bottom line
Bitcoin trading is easy but one should always do background research and do it at your own risk.
Questions? Contact us!