Trading Bitcoins for Beginners – The Ultimate Guide

With every new high Bitcoin hits, it becomes a little bit more popular among a fairly new group of people who have never traded or invested basically on any market. Bitcoin beginner traders don’t have it easy because they don’t know how the market works or what to expect from it. That is why I have created the following Bitcoin guide for beginners that will explain to you the most important features of the Bitcoin market.

Cryptocurrency market is always open

Bitcoin and other cryptocurrencies can be traded 24/7, making it possible for us to earn a profit when we feel like it. Here greatly applies the famous quote from the Wall Street – “Money Never Sleeps”.

You don’t have to buy a whole coin

There is a misconception that you have to buy a whole coin of a cryptocurrency in order to trade with it. That is, however, untrue and it would be very difficult for most people to buy a whole coin of Bitcoin as it currently rallies around 7000 dollar benchmark.

All cryptocurrencies are insanely volatile

Every cryptocurrency is very volatile which means that the price can skyrocket in a matter of minutes or hours and then suddenly drop down. Bitcoin traders have to realise this fact and they should invest in Bitcoins only if they really believe in them. The bitcoin market can sometimes reward in big, but the volatility can also very easily irretrievably destroy your capital.

Bitcoin is growing exponentially

Bitcoin is among us for almost a decade now and it has been exponentially growing from its inception. Yes, there were few bumps on the road, but nothing Bitcoin couldn’t handle. Take for example Bitcoin and its value in 2017, in January the price moved around $880 per coin and now it is 6980$. Have you seen such a price growth in any other market? Probably not and that is why so many investors are interested in bitcoin trading.

Bitcoin is nothing like standard currencies

Unlike from other currencies, Bitcoin is not directly connected to an economy or policies of a single country. That being said, the price of Bitcoin can, however, react to a government regulation. We could be convinced about this relation when ICO (initial coin offering) was banned in China, the Bitcoin price swiftly headed down by a few percent.

How to trade with Bitcoins

There are several options how you can trade Bitcoin. You can either open an account at a cryptocurrency exchange, there are, however significant fees if you do not handle a large capital of money. The problem is that crypto exchanges usually charge very similar fees for sending money, no matter whether you send 1 BTC or 0,001 BTC. You can avoid these unpleasant fees if you pick a margin based trading. Although there is a fee called spread, it is usually very low if you choose the right company for your trading. I think the best entities for trading Bitcoins are: Plus500, IQ Option or Markets. All of them have a great reputation not only in the bitcoin industry.

Stay ahead of the market with your mobile app

The bitcoin market moves up and down all the time, traders who want to be on a guard of their position can download a mobile app to their smart devices, this will allow them to keep a close eye on the Bitcoin position.