Steps to follow for debutant crypto-traders and investors

The exceptional performance of Bitcoin in the last few years has made the world sit up and take note of this digital currency. This has resulted in an ever-increasing number of traders and investors taking the plunge into the crypto world. Among them are many first-time traders and investors who want to try their fortunes in this new space. Visit at: https://bitcoin-banker.io/

Bitcoin trading is not as easy as it is made out to be. If you can earn high profits, there are equal chances of losing your entire investment in one go. Such is its volatility. So, before investing your hard-earned money into the crypto market, you need to consider some important factors.

Where can you start Bitcoin trading and how?

The first step toward bitcoin trading is the selection of a reliable crypto exchange or trading app like the Bitcoin Era, where you can open an account. There are several forums that encourage members to post real-time experiences with such online platforms. Other selection criteria to consider that protect you from fake platforms are:

The exchange has a physical address
It shares its audit reports and order book that ensures transparency in its functioning
Has a good reputation
Verification of new applicants is done through multiple layers of security checks
Does not have any hidden fees that it charges for transactions
Offers several payment options

Selecting the right platform and then creating a fresh account: Go for a stable form of digital exchange

Once you select the exchange platform, you open an account. After the verification process is complete where you may have to furnish personal details, you get your wallet.

Another equally popular trend that is emerging is that traders instead of buying the cryptocurrency speculate on Bitcoin price through financial derivatives such as CFDs. In this case, you do not need to buy cryptocurrency which also means that you do not have to worry about your virtual asset and its safety.

Things to know before a beginner starts Bitcoin trading

Before you start trading, you have to consider several factors. Jumping into the fray without much information as to how the crypto market functions and not having a trading strategy may cause you more harm than good in the long run.

Bitcoin prices are highly volatile, so you need to check certain factors. Some of the factors are:

The limited supply of Bitcoins

The maximum number of Bitcoin has been set at 21 million. Demand and supply play a significant role in changing Bitcoin values.

Its incorporation into the mainstream economy

The higher its acceptance as a currency used in transactions by businesses and banks, the higher will be its demand.

Significant incidents

Any announcement that affects the functioning of Bitcoin such as a shift in certain regulations or a significantly large cyber theft can influence its price.

Social media influence

An unfavorable tweet or bad press may adversely affect the Bitcoin value. Similarly, favorable media coverage shall give an impetus to its value.

You should check out a strategy and then go for an investment in Bitcoin:

There are certain strategies that Bitcoin traders adhere to. You may opt for that strategy that is most suitable for your needs.

Day trading

You complete your trading within a single day. This is ideal for short-term traders who trade frequently throughout the day for quicker gains

Trend trading

You base your trading on the existing trading trends.

Bitcoin hedging

To minimize your loss on your Bitcoin if the prices drop, you conduct short-term trading through CFDs. Your gains here will compensate for the loss on your cryptocurrency.

HODL

This is used by long-term investors who plan to wait for a while before making a move.

You should not hurry when you start the investment process

Keep a check on your emotions

A thumb rule for crypto traders is that invest only as much as you can afford to lose. Losses are as likely as profits. It must not result in a severe financial setback for you in the event of a complete wipeout of your investment. Also, you should stay wary of FOMO in the hope of better prospects.

Conclusion

Bitcoin trading can be a profitable venture for you if you enter the crypto market well prepared. Itenables you to make informed decisions at crucial junctures that turn the tide in the crypto trading arena in your favor.

Author Profile

Scott Baber: Senior Managing editor

Manages incoming enquiries and advertising. Based in London and very sporty. Worked news and sports desks in local paper after graduating.

Email Scott@MarkMeets.com