A wide range of different people like the idea of trading bitcoin. Some like it because it has the possibility of making them a lot of money. Some like it because it is new technology and they enjoy being early adopters. Others like it because it is something that they can actually use in everyday life, and that is useful (particularly if they aren’t trusting of banks and other financial institutes). If you are interested in trading bitcoin, here are some tips to get started.
Find An Exchange
Unlike when you trade other currencies and use the central exchange that is known across the world, there is no official central bitcoin exchange. It means that you need to find one that is going to work for you. You should not rush this, as you need to ensure that the exchange is trustworthy, for example. If you are depositing your own currency in order to buy bitcoin with debit card, you need to check that the exchange you want to use accepts it. Also look at what fee will be charged – is it in your budget?
How Much To Buy?
Another decision that you will need to make is how much bitcoin to buy. This can be a difficult decision as the price is changing all the time, and the price you see on the screen when you are looking through the exchange may not be the one that the bitcoin ends up selling at. To be safe, you can submit a lower price than you see, on the assumption that the price will fall by the time the transaction goes through. If you do this, you won’t receive your bitcoin immediately, and you will need to wait until the price drops to where you expected it to do. If you are in more of a hurry, you can buy at the price stated, and you will receive your funds straight away.
Remember to budget carefully when it comes to trading bitcoin or any other trading. It can be tempting to buy more than you originally intended to because it is exciting, but sticking to what you can afford is much better as you won’t be out of pocket and you won’t regret your decision.
As well as overspending, there are other risks to consider when trading bitcoin. One of the biggest is leaving money on an exchange. If you don’t withdraw your bitcoin and store it in a wallet, then it can be easily wiped out. Due to its volatile nature, anything can happen to exchanges, so getting your bitcoin out as quickly as you can is something that should be a priority.
As with any kind of trade, you may not get out what you put in. It will all depend on the market and what happens to the value of bitcoin. Over the last few years, bitcoin’s value has increased hugely, even making multi-millionaires out of people who invested relatively small amounts of capital. This is what has prompted many other people to trade bitcoin, but these results may not last, and that is certainly something to think about.