How to Start Bitcoin Trading: A Comprehensive Guide

Bitcoin has been in the news lately, and for a good reason. The value of this digital currency has skyrocketed in recent years, and many people are now looking to get into the Bitcoin market. If you're one of those people, then you're in luck.

This blog post will teach you everything you need to know about how to start trading Bitcoin. So whether you're a complete beginner or you've been trading Bitcoin for years, this guide has something for everyone.

Let's take a look at these steps.

Create a crypto brokerage account

The first thing you need to do is open a cryptocurrency brokerage account. You can 'simply' buy Bitcoin/Ethereum/Litecoin with your local currency through an exchange like the Crypto Genius site. After you have created your account, you need to verify your identity.

This is required because many Bitcoin exchanges now require proof of identity before allowing users to trade. If you cannot provide proof of identification within these exchanges, unfortunately, the option isn't available for use by non-US citizens.

Fund your account

The second step of starting to buy and sell bitcoins would be to transfer real money into your online bitcoin wallet. You can skip this step if you already have a bitcoin wallet with many bitcoins that you want to trade. Funding your account is as simple as entering the money you want to use for trading.

Similarly, fees will apply with every other financial transaction (some exchanges will charge additional fees on deposits). After initiating the transfer, it will take 4-5 working days (excluding weekends and holidays) for reaching your account at any given exchange you choose.

Choose crypto for investment

Bitcoin is the most well-known and highly traded cryptocurrency. If you want to invest in Bitcoin, you need to use a reputable trading platform. Bitcoin Cash used to be a simple currency swap of Bitcoin's blockchain, but it has since split into its currency. You can buy and sell BCH just like BTC on some exchanges, which opens up BCH to trading pair options with other altcoins.

Pick a strategy

The most important thing you have to do is choose your strategy. Do you want to buy Bitcoin and hold it for a long time – possibly years – hoping for the value to go up? Maybe you want to day trade – buying and selling within a day – and profit from short-term price fluctuations.

Or maybe you want to swing trade: buying and holding onto Bitcoin for weeks or months, then selling when you think the price is going up before it ultimately falls. You can use any of these strategies individually, but I suggest you use a combination of them all. That way, you won't put all your eggs in one basket (if something goes wrong with your investment).

Store your cryptocurrency

You can store your cryptocurrency on a hardware wallet, software wallet, or exchange. It is more secure to have your wallet whose private key you control in the long run. If you lose this information, someone else will have access to all of your coins, which is bad if they gain value over time, as cryptocurrencies are designed to do.

The Bottom Line

You can start trading bitcoins with a minimal amount of money. There's no central marketplace for bitcoin trading, unlike stocks or bonds, which have a central exchange where people buy and sell shares willy-nilly. This means that you'll continue to pay the same rate for your bitcoins until you want to complete the transaction. You effectively lose some anonymity, but if you're worried about losing financial privacy, maybe Bitcoin isn't for you anyway.