If you decided to enter the world of cryptos, your logical first choice is probably Bitcoin. It is popular, liable, and the trading principles have mostly been established for this crypto. Bitcoin is still the biggest crypto and holds the throne for being the most traded one.
Many would argue that the peak that happened to the Bitcoin market in December 2017 was the highest point you would see for this crypto. The others would claim that its time is yet to come. Be that as it may, you will not make a mistake with Bitcoin. In fact, follow these several simple steps in order to make your trading successful.
Learn How Blockchain Technology Works
Blockchain is the power that makes Bitcoin and other cryptos trustworthy. The name says it all – it is a system that contains blocks forming a chain. When a transaction happens, all of the blocks in the system need to process it and approve it before the transaction is completed. This way, blockchain excludes the necessity of the middlemen such as banks, thus improving the speed and quality of transactions.
That’s it in essence. But it is just the surface knowledge. In order to truly understand blockchain, you can either read more about it or see how it is applied in real life. Nevertheless, you still need thorough technical knowledge to know the details. To be honest, nobody actually knows every single aspect of it, except maybe its mysterious creator Satoshi Nakamoto.
Learn More about Bitcoin and Other Crypto
Bitcoin is a currency just like dollar. However, it does not exist in ‘paperback’; it is just code snippets which represent digital assets. Besides, you have Bitcoin as a protocol, which is the basis on which all the transactions are made. There’s also a lot to know when Bitcoin is considered, but there are other cryptocurrencies which do not all operate the same way – although all of them use blockchain.
Yes, it sounds confusing. It will always be a bit confusing. For now, the basics are enough to get you started. Why? You’ll see.
Understand That There Are Risks
The technology behind cryptos is still in its infancy, and there’s not much anyone can do to speed up that progress. All of the professionals agree that the technology is still in its training grounds and even the big peak of Bitcoin was just a test.
Since it is young, it brings specific risks with it. Apart from the risk of the price going rapidly down, there are still some risks regarding security. The security is continuously being upgraded, and that’s a good thing. But until it is entirely hacker-proof, you should always be wary.
Stay Updated with News about Bitcoin
When you know the basics of the blockchain and Bitcoin, you are ready to inform yourself regarding these things. There are several news platforms that mostly report on the state of cryptos and blockchain.
But why is this important? Well, mostly because the actions of the people who have made the crypto and the actions of the people who own it will affect the price of Bitcoin (and other cryptos for that matter).
Open an Account on an Exchange
The next step is to choose an exchange where you can buy Bitcoin. If this is your first crypto, then you are probably going to buy it with fiat money. For this, you will need to find a Bitcoin exchange platform that actually offers this type of transaction.
One of the known cryptocurrency exchanges for this is CEX.IO. It is well suited for starters as its interface is very beginner-friendly, and you can make your first Bitcoin purchase in just a couple of minutes using a credit card. When it comes to Bitcoin, CEX.IO offers a wide range of fiat currencies that you can buy your coins with. Among them are dollar, euro, pound, and even rouble – the currency that only a few exchanges support. This makes CEX.IO a perfect choice for international users. What’s more, the customers of CEX.IO are welcome to make use of a multi-functional trading platform that provides a number of advanced tools, including margin trading. However, this activity requires much knowledge and skill, which are hardly the resources that a newbie has at their command.
Buy Your First Bitcoin
When buying your first Bitcoin, make sure to check the restrictions and the fees on the exchange that you are using. It will be stored in your exchange wallet, but in order to make it safe, you should save it in your Bitcoin wallet (or even the offline ledger, if you have one).
Study the Numbers
Once you repeat the same process of buying and selling Bitcoin, you are in the game. By that time, you will have learned a lot about trading and how it works. The next logical step is to immerse yourself in stats and charts. It is a necessary part of trading, as you will start noticing patterns and try to predict how the price will change. Chart reading is easy to learn but difficult to master.
Learn Trading Techniques
Finally, all that’s left is to learn about various trading techniques and educate yourself on the topic of trading cryptocurrencies. It opens a new door to the crypto world. Once you step through it, there’s a whole new range of opportunities waiting for you to translate them into action – or to lose it all.
No matter how well educated you are, you need to understand that luck still plays a small but important role in the world of crypto. If you are willing to risk a bit, you will understand that there’s always a tiny possibility of failure. And it is up to you to minimize the luck factor.