People have been doing stock trading for years. Bitcoin is quite a new asset in the world of trading. For any professional and talented trader, new assets are not tough for trading but rather very interesting. But, for a newbie, it is relatively complicated.
Though trading bitcoin seems very hard to the new investors, actually it just needs some knowledge about the crypto market and the trading exchanges’ role. The bitcoin market is very volatile. So, before entering the market a new trader must have a clear idea of the consequences that can happen and the risks involved. They must also know very clearly why they are entering into it and do they really have the backup to tolerate the risk in case something negative happens. If you are into Bitcoin trading, you might be interested in a reputable site that will give you advanced knowledge in the world of crypto.
After getting all these answers that satisfied the need of the new traders and their fear, they are good to dive into bitcoin trading. So, here are the detailed procedures that you have to follow to trade bitcoin or any other crypto.
Find a reliable trading platform: Finding a trading platform in this market is easy but finding a trustworthy platform is very difficult. Below mentioned are some tips to follow-
- There are many options available online. You can collect some of them with the highest ratings and note them down.
- You must also read their customers’ reviews before you choose one from them.
- Different platforms have different rules or guidelines. Make sure you read them.
- If it is possible choose the nearest one but that should be a good one. Because you can visit their official address once before you register with them.
- There are many applications that also provide good facilities and tools that make trading easy.
- Registration: Once you choose the right platform you can register with them. The process goes through a simple ID verification that doesn’t take much time. You might have to share some information depending upon the exchange’s rules.
- Open a trading account: Next, you need to open a trading account. This will be your bitcoin trading account where you can buy or sell bitcoin as well as other cryptos.
- Link the account: In this stage, you have to link your bitcoin trading account with your existing bank account to transfer funds.
- Fund the trading account: You need some funds in the bitcoin trading account in order to buy cryptos. So, transfer some funds from your bank account to the trading account. If you are buying bitcoin for the first time you have to transfer fiat money to the account.
- Buy or sell bitcoin: Now, you are finally ready to place your buying or selling order for cryptos or bitcoin. Buying or selling bitcoin is done in two different ways. You can choose one of them. They are market order and limit order.
Market order: Now, what is a market order? With this type of order, you can buy or sell Bitcoins at a current bid price. When you are instructing the exchange to execute a market order, the exchange will process the transaction as per the current bitcoin rate. Here you must have the knowledge to know what would be the right time and price to buy or sell crypto. In a market order, the transactions are done so quickly but the rate is not secured.
Limit order: In a limit order, you have much more control over your trade. Here you can set a maximum and a minimum price at which you want to buy and sell bitcoin. You set the limit and when the price will touch them the trading will be executed. Here you get more security on the price.
Bitcoin trading is as easy as that. But profit will come when you trade with the right strategy. Nowadays, most of the trading exchanges are providing some tools that help to understand the price, market volatility, future analysis of crypto prices, and mitigating risks. Choose a platform that offers these services. And also, if you are a complete beginner do not forget to talk to an experienced trader or investor before starting.