Are you a beginner trying to lay your hands on buying and selling Bitcoin? There is no doubt, that this article is going to benefit you for a long time. You will learn how you can start trading Bitcoin and different trading methods which will help you to make profit on your investment.
Basically, to start trading bitcoin, you should consider the following process:
- Choose an exchange with which you can open an account e.g Bitfada
- Verify your identity with the exchange
- Deposit money into your account wallet
- Start buying and selling Bitcoin
Now, let us consider a simple guide to trading Bitcoin. However, we will quickly look at the basic difference between bitcoin investment and Bitcoin trading.
Bitcoin Investment and Bitcoin Trading
Bitcoin investment is a situation whereby you buy Bitcoin and choose to keep it in the market for a long period of time. In other words, you buy and choose not to sell immediately even when it seems that there is a relative increase in the price.
Bitcoin investment is operated under the Bitcoin term HODL which is a typo error for HOLD. When you buy Bitcoin and HOLD it in the market for a long time, it is called Bitcoin investment.
There are several reasons for which people choose to hold Bitcoin in the market, but the most common of them is the speculation of future increase in the price, belief in the technology, the ideology, the integrity, and the competency of the team behind the currency.
While Bitcoin investment involves long term before selling, Bitcoin trading has to do with a short term return on investment in Bitcoin. That is, when you buy and choose to sell your coin almost immediately (as soon as there is a little increment), it is called Bitcoin trading. A Bitcoin investor projects a long-term return while a Bitcoin trader projects a short-term return.
Though the two terms follow the same process for buying and selling, the only difference is the time period in which they hold their coins in the market. However, we will focus our eyes on Bitcoin trading.
Choosing a Bitcoin Trading Method
There are commonly three different trading methods, namely Day Trading; Scalping; and Swing Trading. Let’s discuss them one after the other.
1. Day trading
Day traders make several trades per day with the aim of benefiting from the short-term price movement. Day traders will hold their coins in the market for some seconds, or minutes or hours, then sell it off to make a small amount of profit.
He may do this many times a day. Day traders usually close all their trading at the end of each day. The rationale behind day trading is to make quick, small profit per day.
Scalping is more or less like day trading because it also involves daily transactions; but in some ways, it is deeper than day trading.
Scalping involves an attempt to make substantial profits on small price changes by conducting tens or in fact hundreds of trading activities a day. It is believed to be a system that limits the risks but increases the profits of the traders.
A scalper can trade round the clock waiting for a slight upward movement in the market price to be exploited for his own advantage.
3. Swing trading
This system involves holding the coins in the market for a relatively longer period depending on the trader’s target and the market price movement. Swing trader is not concerned with making quick small returns; he is seeing a bigger picture so that he could decide to hold the assets for the next few days, or weeks or even months until he meets his target.
Buying bitcoin through an exchange
Whichever trading method you consider is best for you, the truth is, you will need an exchange platform where you can buy and sell your Bitcoin asset. This is where you need to exercise more
carefulness. You need to be able to trust the platform you choose to trade with, because it is possible to lose all your investment if you miss it at this point.
Many exchanges don’t have a supportive system which can quickly respond to you when you are faced with technical issues. Some don’t have high capacity servers which often lead to server breakdown.
When a server is broken down, it is evident that trading becomes absolutely impossible. Some have policies which impose restrictions on funding and withdrawal from your account. That is why, I like to proudly recommend Bitfada as the only and the most trusted exchange platform to start trading with.
If your interest is to have secured trading without restrictions on your funding and withdrawal; a platform with large server capacity so that you do not experience frequent server outages, you should think of joining Bitfada.
With Bitfada, you can expect to have 24/7 technical support; and your data on this platform is end-to-end encrypted so that your account cannot be hacked into so long as you do not reveal or share your sensitive information with outsiders.
Interestingly, Bitfada offers enticing rewards in the form of affiliate and referral programs. When you invite your friends and family to buy and sell Bitcoin through your link, you are automatically qualified for a whooping 40% of escrow charges.
We have written several articles on how you can join, register and complete your registration on Bitfada platform. Please, check the links for those articles on this page.
To join Bitfada, go to: www.bitfada.com
For enquiry or support, contact: firstname.lastname@example.org
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