Bitcoin trading for beginners

Bitcoin trading for beginners

Bitcoin trading for beginners, do you want to trade Bitcoin but not sure where or how to start? Our complete guide to bitcoin trading below will explain everything you need to know about how to get started such as how to choose the optimal trading platform, deposit, and open trades.

Plus basic terms, tips, and strategies that you should be familiar with before you start trading. By the end of this guide, you will be able to trade Bitcoin with confidence.

What is Bitcoin?

Bitcoin can be traded on the open market and is not controlled by any central government. For example, the decisions made by the US Federal Reserve have a direct impact on the value of the US dollar. Bitcoin's value is not affected by any central bank's decisions. This is part of Bitcoin's appeal.

Bitcoin trading is the process of speculating on the bitcoin price in order to take profit. Unlike buying and holding Bitcoin only, when you trade Bitcoin, you adhere to a few different criteria.

Why should I trade Bitcoin?

Bitcoin attracts investors because its volatility provides the potential for profit. Of course, this volatility also provides the possibility of losses just as easily. If you want to trade bitcoin, it is important to educate yourself about the Bitcoin market - and make sure to assess your risk tolerance.

Is Bitcoin Trading the Same as Forex Trading?

Bitcoin is a digital currency, so investors and traders may think of it in terms of the foreign exchange (Forex) market. Forex trading is the largest market in the world far away, with a daily turnover of around $ 6.6 trillion, according to the 2019 edition of the Bank for International Settlements (BIS) triennial survey.

For starters, you are just asking to buy or sell Bitcoin with the purpose of looking for price action. Hence, you have no intention of using it as currency. You are only looking at the asset through a market movement lens. Exact parallel in the foreign exchange market.

Foreign exchange market

In the foreign exchange market, or forex, it is possible to buy and sell the US dollar, Japanese yen, and other global currencies at volatile prices.

Although the underlying asset (currency) can be used as a form of payment, in the Forex market all that is concerned is the movement of the currency's price. Trading bitcoin and cryptocurrencies are just like that.