At its inception, Bitcoin was less than $400 in the market between 2010-2015. However, being invented in 2008, not many people knew about its value 10 years down the line.
In 2021, the bitcoin value has gone beyond $50,000. Those who bought at less than $400 are now smiling with $50,000, almost 1000% of their initial investment.
In 2020, Bitcoin registered the highest number of wallet users ever as the number grew from 45 million to 63 million users.
Having said that, no one has been locked out. Before starting to invest in the Bitcoin, the investor must understand the basics.
Bitcoin trading involves buying at a low price and selling at a high price, so the difference in both amounts becomes your gain. Just almost the same as the stock market trading.
This is different from assets investing, which requires you to buy an asset and hold the assets and gain returns over time.
There are different trading methods such as Day trading, Scalping, and Swing trading.
1. RESEARCH
Before starting to trade in Bitcoins, the most primary aspect is research. Conduct research to determine the possible methods in the investment.
Know the basics such as how it started and its growth over the past few years.
Understand the volatility. Bitcoin is a highly volatile asset and if you’re not careful, you might end up losing a substantial amount of your asset.
2. TRADING/EXCHANGE SITE
The investors need to know where to trade and how to trade. These tools include the Bitcoin Up software.
This is a sufficient reason why the investor must choose carefully. Coinbase is the most trusted platform in the US. With the increasing fraud rates on the internet today especially when it comes to digital currency and online payments, one has to be careful not to fall into the trap.
When looking for an exchange site, primary items must be looked at carefully. These include security, reputation, features, user-friendliness, geographical location, and fees.
3. INVESTMENT GOAL
By setting your investment goals early, it helps in reducing risks that accompany trading. Asset and Forex trading requires high intelligence and understanding.
It will also help determine if you want short-term or long-term trade and the kind of trading strategy you’d be interested in.
Trading bitcoin is now easier than during its inception. Many people have been pumping cash, investing and rocking with lots of cash as gains.
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