Bitcoin is the most valuable digital asset today. It is the most popular cryptocurrency. On seeing its gaining popularity day-to-day you might be excited to invest or trade Bitcoin to get profits from it. If so, you have made a smart decision.
Being excited about Bitcoin is good. But! Like every other thing, there are some risks involved in Bitcoin trading as well. It might land you up in high profits or tragic losses. So, before you start to trade Bitcoin it is necessary for you to have a basic understanding of it.
What is Bitcoin trading?
It is very similar to trading stocks. You will buy Bitcoin from the Bitcoin exchange and wait for its value to rise so that you can sell it and thus you make profits from it. This is what Bitcoin trading is, in simple words.
The current value of single Bitcoin ranges around 60,000 US dollars. Oh wait! To trade Bitcoin, you need not buy a complete Bitcoin. You can buy some portion of it with the amount you have and start to trade with the same.
Trading Bitcoin is not as easy as it seems, you need to stay updated with news of Bitcoin. But luckily, websites like fingerlakes1.com help to stay updated with up-to-date Bitcoin news.
Before you invest in Bitcoin, make sure you follow these tips:
Tip 1: Select a secure wallet
When you buy Bitcoin, you have to store in a digital wallet. Bitcoin wallet is actually a software program that stores private information about Bitcoin such as private keys. There are different forms of Bitcoin wallets available such as desktop, laptop, web, and hardware wallets.
But web wallets are used generally, as they are easily accessible. Coin base is the one of the most popular wallets. You should be extremely careful while choosing web wallets to store Bitcoin as there are many fake apps in the name of Bitcoin traders.
Tip 2: Start small
Don’t put all your money into Bitcoin at once. Bitcoin is highly volatile in nature. You never know when its value goes up or falls down. So, invest in small amounts.
Also, make sure you buy Bitcoin at low price and sell at high price. You can analyze this from the graphs shown in the trading app you use.
Tip 3: Try to hold Bitcoin as long as possible
Often, Bitcoin is volatile in the short term. You can see notable profits after months and years. In 2013, Bitcoin value was around $140 dollars. It has seen unprecedented rise in 2017 on reaching $13,000, and it has seen major drop in 2018 falling to $6,200 and again since October 2020 it value raised to $24,000 US dollars.
From then, it is seeing a steady increase in value. But you never know when its value would fall again. So, invest in Bitcoin and hold for a longer period to see significant profits.
Tip 4: Get hold on your emotions
Bitcoin is not a small game. It is capable enough to turn around your life. But, don’t get more serious about it. Be prepared to see both losses and gains. The volatility of Bitcoin may mess up with your emotions. It would be difficult for you to see high profits immediately followed with losses. But prepare yourself to manage this risk wisely.
Tip 5: Get your research done:
Don’t always rely on other people’s decisions or don’t rely on trading app strategy. If you are serious about Bitcoin trading, get basic knowledge about it. There are multiple reliable sources available on the internet. You just have to go to them and learn about it.
Undoubtedly, Bitcoin has a bright future in the world of finance. The acceptance of the Bitcoin is growing day-to-day, so is its value. Probably, it might be a revolutionary change in this decade. Be wise enough to accept and adapt to this change as soon as possible.