Bitcoin is a cryptocurrency that was created in 2008 and is a decentralized digital currency. When it was created, it was worth less than $0.08. Now, one single bitcoin is worth almost $13,000, and it is estimated that there are around 5.8 million unique users with a cryptocurrency wallet.
However, before you start trading bitcoin, you need to do some serious research. Bitcoin can be very volatile, so you can’t invest all of your life savings and expect to make a profit immediately. Here are some things you need to do before you can start trading bitcoin.
Set up a bitcoin wallet
Bitcoin wallets are free, but you need to pick the right one for you. There are lots of different wallets you can use based on your experience with trading. You can also pick a bitcoin wallet based on how secure you want your account to be.
Once you have found the perfect bitcoin wallet, you then need to connect it to a bank account.
Do your research
Before you make a bitcoin transaction, you need to do your research. Trading bitcoin can be incredibly complex, and it can be very, very expensive if you start investing without really knowing what you are doing. There are plenty of free online courses, seminars, and websites that can help you begin to understand trading.
Although many people will make you believe that trading in any cryptocurrency is easy to work, the truth is that you need to be well-versed with the ins and outs of the market before you start trading large sums of money.
It is also incredibly important to note that, while it can be lucrative, investing in cryptocurrency is not a safe investment. You should therefore only make it a small part of your portfolio.
Join a Bitcoin Exchange
Once you have learned and understood the risks of trading bitcoin, the next thing you need to do is join a bitcoin exchange. Exchanges like bitcoin digital are where you can trade bitcoin for traditional currencies, such as USD. There are hundreds if not thousands of different bitcoin and cryptocurrency exchanges, so make sure you find one that is reliable and secure.
Purchase bitcoin
Now you have set up a bitcoin wallet and joined an exchange, you can start trading bitcoin. If you are still learning the ropes of cryptocurrency trading, it is recommended that you start with a small amount of money. When trading, you should only spend what you can afford to lose. Although one bitcoin is urrently worth almost $13,000, you don’t have to spend this much money. In fact, bitcoin can be split up to 8 decimal points. The smallest piece is called a satoshi and can be bought for a few cents.
Conclusion
Trading bitcoin isn’t easy, and it could cost you a lot of money if you don’t do your research.
