Once you get the hang of it, the bitcoin trading is pretty straightforward. Like any other currency, buying and selling bitcoin is pretty straightforward. Due to the volatility, this cryptocurrency has gotten the attention of many traders.
How to Trade Bitcoin
First, you need a trading platform that allows you to make your trade-in this currency. Since, the evolution of bitcoin, the number of trading platforms is increasing. Whenever, the price rises, every investor and trader wants their share of profits. Anyone with some experience can trade this cryptocurrency. So, what you need to make some profit and to make sure that you are going to trade efficiently?
In this guide, we will help you make decisions for trading.
Why Should You Trade Bitcoin?
There are lots of things that make bitcoin trading unique and exciting. The main reason to invest in this currency is that there is nothing like it.
It is Not Fiat
The best thing is that the currency is not under the control of any government. It also means the price reacts to a wide range of events. Because there is no single economy that has a stranglehold over the price. Some events that have affected the price in the last few years are as follows:
Recently, the United Kingdom decided to opt-out of the European Union that has caused a scene in its local economy. Binance which is an exchange giant decided to take advantage of this situation and registered its new trading platform in new jersey. It allows the traders to trade in British pounds and euros with Ethereum and bitcoin.
A few years ago, the prime minister of India made the Rs. 1000 and Rs. 500 notes non-legal tender. After the declaration of demonetization, the price of bitcoin eventually raised on one of India’s leading exchanges called Zebpay. The price went from $757 to $1,020 just after 18 days.
Markets start to fall after the Trump’s victory. Moreover, the Australian markets lost $30 billion. But in the case of bitcoin, the story was different. The price rises from $707 to $740 before the election night after that comes down to $705 and then went up again to $740 after the Trump got elected.
As you can see from the above-mentioned cases, people tend to invest more in bitcoin when faced with unstable markets.
Another great thing about bitcoin is that it is not like stock markets. Stock markets work in a specific country and operate in the working hours of the country. However, the bitcoin is open 24/7, you can buy it from any exchange in the world.
Bitcoin and other cryptocurrencies are famous for their volatility. There are frequent and rapid movements in prices that can help you make quick and easy money.
How Does it Work?
Before investing in any asset, it is important to know how it works. That is why; we are giving you a brief overview of its mechanics.
This technology was created by a programmer known as Satoshi Nakamoto. It is powered by blockchain technology which is a time-stamped series of an immutable record of data. It is managed by a cluster of computers owned by many entities. What does that mean in single terms?
Just think about a ledger that everyone can download and write into. Anybody can:
Check the records
Time when these records are logged
Cannot temper with previous entries made. You cannot make changes because it is immutable.
The first example of the technology that is transparent and immutable ledger. It also gives us a system that is free of human corruption since all the transactions made into the blockchain can be checked.
How Do Transaction Work?
One of the interesting things about bitcoin is that you do not need to visit banks for making a transaction. You are your bank and can manage it through public cryptography.
You need a digital wallet to hold this currency and every wallet has its public address and private key. Public address is your like your account number. On the other hand, the private key is like your PIN code. When you want to send bitcoin, you do this using your private key. For receiving bitcoin, you use your public address.
So, keep in mind that you should not share your private key with anyone. But you can share the public address to receive bitcoin. I hope this will answer your questions regarding the working of bitcoin.
The Gateway to Cryptos
You need a trading platform to trade in cryptos. These exchanges work as a portal between the crypto world and the Fiat world. The exchange work as similar to a stock exchange but its main focus is on cryptocurrency rather than stock trades. In short, it provides you a platform where you can buy and sell bitcoin and other major cryptocurrencies. Their main focus is to make the process user-friendly, competitive pricing and a platform for professional and experienced traders.
Fiat to Crypto Exchanges
These exchanges allow you to buy cryptocurrency with Fiat money. There are lots of such exchanges that allow you to buy bitcoin or any other cryptocurrency using your Fiat money.
Crypto to Crypto Exchanges
These exchanges allow you to buy crypto with another crypto. For example, it allows you to buy bitcoin in exchange with Ethereum. One of the finest examples is Binance but it is a platform for more experienced traders.
If you are in Canada Then Bitbuy is a perfect choice.
Bit buy is a Canadian-based digital currency platform found in 2013. It is a trustworthy platform that allows you to sell and buy cryptocurrencies. It is a Fiat-to-crypto exchange, that allows you to buy bitcoin or Ethereum etc. with Canadian dollars. It also allows you to withdraw digital currency with zero fees. You can send it to your private wallet which makes it ideal for long-term investors. For security reasons, they will hold your first-time purchase for one to three business days.