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A simple guide for beginner bitcoin traders

Here’s some of the most important things you need to know.

physical bitcoin on table
Image: Unsplash

Bitcoin is a decentralized and peer-to-peer electronic currency that exists thanks to the support of thousands of miners. Its main advantages over traditional currencies and payment processors like PayPal or Visa are decentralization, anonymity, speed, low fees (almost zero), and almost impossible to cancel transactions.

But as the most famous cryptocurrency on the market, it is also more volatile than any other – anyone interested in trading should be aware of this risk first before starting with some real money(ETH/BTC). Because we don’t want you to lose all your funds doing that.

Another thing you need to know – there are no “magic bullets” that will double your virtual wallet overnight just by clicking something twice. And even if you follow this guide then you can earn good money with bitcoin. You can check out https://www.bitcoinrevolution.org/

What is Bitcoin Trading(buy/sell)?

Bitcoin trading is the act of buying, holding, or selling cryptocurrency with the purpose of making a profit. When you think that price will rise in the future, you buy bitcoins; when you think it will lower down, you sell them.

Buying and selling are actions one should do after analyzing charts (technical analysis) with special indicators. These indicators give us “the edge” over other traders but they aren’t 100% accurate so far.

Where to Start?

There are many different bitcoin exchanges out there where everyone can start buying or selling bitcoins without any pre-money invested. You just need an e-wallet to store them (like Blockchain, Coinbase, or Xapo ). Before choosing any of them please read more about different security levels and fees.

Security in Bitcoin Trading.

Bitcoin transactions are secured by military-grade cryptography. Each payment address is linked to a certain amount of Bitcoins that can’t be spent if the private key from which they were generated was ever lost or destroyed.

If you lose those keys or your e-wallet provider doesn’t provide enough level of security then there is no refund even if you’re 100% sure that you’ve been hacked. The same applies when someone gains access to your account using your login, password, and 2-step verification code.

This is why it’s very important to set up everything correctly from day one – especially a strong password with uppercase and lowercase letters, digits, and special symbols.

Which Wallet to Choose?

Well, this post wouldn’t be called “Bitcoin trading” if you don’t have any bitcoins at first. So the first place where you should go is e-wallet websites like Blockchain or Coinbase. Here you can create your BTC wallet without paying anything for it. Now you have a secure place to store them that doesn’t belong to anyone else except yourself.

You are now ready to join some free bitcoin faucets, so-called because they usually give away small amounts of bitcoins for simply entering your e-mail address. After completing this task every hour or every day you will have some satoshis in your account.

How to Buy Bitcoins?

There are many ways to earn bitcoins but buying them for real money is probably the easiest thing to do. There are hundreds of different exchanges available on the internet offering their services. Again – each of them has different security levels so it’s up to you to choose which one seems more reliable to you.

In general, they all follow a similar principle when it comes to buying bitcoins. First of all, you need to choose if you want to trade in bitcoin or some other cryptocurrency. Some exchanges offer more than one hundred different currencies so this is really up to you.

Once you have chosen an exchange and registered there, go to the section where they sell BTC by pairing them with usual money like EUR, USD, CNY, etc.

Conclusion

I hope that this article will be helpful for all those who are new to Bitcoin trading. This guide is far from being complete – there are still a lot of things you need to know if you want your business with Bitcoin to be successful.

Have any thoughts on this? Let us know down below in the comments or carry the discussion over to our Twitter or Facebook.

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