5 steps to trading bitcoin

Over the years, cryptocurrency has made its way to becoming a real craze in the cryptocurrency world. Every day the media reports about bitcoin. If you are one of those people who are curious and want to keep up with the trend, but don't have enough idea how to get started and things to consider, then this article is what you really need.

5 steps to trading bitcoin

Follow the steps below to start gaining cryptocurrency experience

  • Learn the basics of Bitcoin trading

Even though Bitcoin has been sweeping the media in the last 3-5 years, and you know its general concept, you shouldn't skip this educational step.

Cryptocurrencies are direct digital money running on the blockchain technology which is a participatory public bond wallet in which individuals make transactions, i.e. transfer currencies between bitcoin wallets. Each transaction has a special signature that ensures the protection of your personal data. While all activities in the blockchain are transparent and public, your identity details are not disclosed. The system confirms your trades through the mining process. The most widespread and powerful digital currency is Bitcoin. While all other digital currencies fall under the category of Litecoin.

If you want to dig deeper into the characteristics of bitcoin and the technologies used, you can visit bitcoin.org or check out bitcoin magazine.

Even if you consider yourself well versed in this topic, do not stop looking at cryptocurrency news and the opinions of experts who are almost the only source you can rely on to make buying and selling decisions.

  • Learn about trading strategies

While there is conflicting news about Bitcoin crashing or flying high, the percentage of people who trust this currency is rather low. However, we all know that she gets a lot of buzz, and has an audience that follows at least two types of behaviour.

The first group is trying not to bet on price fluctuations, but rather to invest bitcoin for the long term. They are ready to bear the consequences of their highs and lows with patience, waiting for the price to rise further. The adopters of this method consider Bitcoin as a means to support technical progress and the future of digital currencies, that is, they invest for their own reputation and goals and not to achieve income from them.

The second group considers Bitcoin a traditional asset that allows it to generate profits in the short term. These are the Bitcoin traders (experts with a strong analytical background and a good knowledge of the technology used in “digital money”, as well as the adventurous and interested) who are ready to trade non-stop due to the fact that the Bitcoin market - unlike other markets - operates all day, all days of the week

Bitcoin Specifications and Disadvantages

Aside from the market being available around the clock, take a look at our list of other Bitcoin pros and benefits.

Bitcoin strengths

  1. Margin of Freedom: Bitcoin is the only unofficial currency in the world in the sense that it is not subject to any central authority, which makes it decentralized and transparent. Bitcoin prices are not dependent on geopolitical events, inflation, or other microeconomic factors. It does not include any third parties that can disrupt your trades. However, anyone can look at the accounts in the blockchain without being able to manipulate your funds or reveal your personal data.
  2. Ease of getting started and accessibility: Anyone in the world can trade bitcoin even if they do not have access to traditional exchange systems, as it bypasses many verification procedures required by the rest of the markets. All you need to get started is a bitcoin wallet and an address, where you can transfer money using a memory card! Furthermore, bitcoin traders are not bound by currency exchange rates.
  3. Identity protection against theft: When you make a transaction, it is confirmed by a special digital signature that ensures the security of your transactions and remittances. In addition, no information is leaked of any kind but your identity is completely protected. You also have the option to backup and encrypt Bitcoin.
  4. Speed ​​of Payment: Bitcoin trades are usually settled within 2 business days and are not subject to any public holidays or weekends. No one can reverse these deals and transactions.

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