Individuals that are new to the cryptocurrency world often get confused between trading and investing. An investor buys currencies and holds them for the long-term, whereas a trader buys currencies but sells them as soon as the prices get high. Talking about cryptocurrencies that are highly in trend, bitcoin is one of the most demanded cryptocurrencies. Bitcoin enthusiasts are eager to trade or invest in bitcoin to earn profits with its highly volatile market. If you want to be a successful bitcoin trader, this article will help you learn bitcoin trading. For traders seeking register the best trading website and get the best trading experience.
A bitcoin trader is the one that buys and sells bitcoin in a limited time framers to get the maximum benefit of an increase in price. Trading Bitcoin is now possible with crypto exchanges and bitcoin trading platforms. Let us learn about crypto exchanges and learn step by step to start with trading bitcoin.
Cryptocurrency Exchanges
Cryptocurrency is the marketplaces that have online existence and enable users to buy and sell bitcoin as well as other cryptocurrencies by acting as a mediator. The first step that a bitcoin trader needs to follow is to open an account with a cryptocurrency exchange that charges a small amount fee for opening an account in exchange for fiat currencies. Almost all crypto exchanges allow users to use fiat currencies to buy bitcoin.
Bitcoin traders can also buy bitcoin using a credit card, but users have to pay trading fees. Some very popular crypto exchanges are present across the world. Traders need to open an account with the exchange, link their bank account, and then use an exchange account for depositing and withdrawing money. Users can also convert their cryptocurrencies into fiat currencies into seconds and transfer money to other exchanges or bank accounts.
Which exchanges are considered safe?
The core concern of bitcoin traders is about the safety of their funds. The professional traders only store or have limited money with exchanges required to carry out trading activities. With the increased acceptance and popularity of Bitcoin, there have been fake exchanges that have taken place online that fraud with people. In today’s time, it isn’t easy to search for a good and genuine exchange. An exchange that is genuine mainly has a transparent office address, cares about the security of traders’ funds, and has a strong security system that prevents hacks and security breaches from occurring.
A safe exchange is the one that completes the verification process of users fast and provides great customer support to customers to clear all their queries and issues. The whole process of opening an account with the exchange, getting it verified, and linking it to a bank account takes around 2-3 days. After completing these steps, traders can start buying and trading bitcoin. Once you have completed your buying process with an exchange, you need to find the right digital wallet to store your bitcoins and ensure their safety.
How to safely store bitcoins?
The best way to store your bitcoins is in hardware wallets as these are offline wallet that isn’t vulnerable to cyber attacks and theft. Bitcoin owners are given control over their wallet’s private keys, and it becomes their responsibility to secure private keys using appropriate security measures.
Users can create digital wallets to store their different cryptocurrencies but access those digital tokens, and only private keys are used. Users must never share their private keys with friends and even family because the one that owns the private keys is considered the owner of digital coins. In case if you lose your private keys, no one can help in getting back the keys, and you will end up losing all your funds. Professional crypto traders prefer to use hardware wallets because these provide complete control to users to access and safeguard their coins. Hardware wallets are a bit expensive but are considered the safest way to store bitcoins.
Hardware wallets store private keys in a hardware device, and to store keys in a hardware wallet, and you can read the user manual of wallets. Take proper precautions to secure your bitcoins and secure your private keys to prevent unauthorized access.