Trading Bitcoins for Beginners: A Comprehensive Guide

How to Start Bitcoins Trading for Beginners

Ibn-e-Ameer

Are you a beginner and want to trade bitcoins? Are you afraid of buying and selling it due to its price volatility? Do you want to know how to invest in Bitcoins Stocks? If, Yes then you are in the right place you can get deep insight into it. In this article, I will tell you in detail how to start bitcoins trading for beginners.

How much should I invest in bitcoin as a beginner? This is a common question every beginner asks for.

However, first, you should know what bitcoin is? Without knowing about it in detail, you can not learn how to start bitcoins trading for beginners.

What is Bitcoin?

 

Bitcoin is a digital or virtual currency that you can buy and sell on a digital platform called ‘bitcoin exchanges’.

An unknown person’ Satoshi Nakamoto’ had created it in 2009.

Bitcoins owners can sell and buy it without involving any middle brokers like banks.

Actually, it gives financial independence to make transactions, even you can book hotels, shopping and buy Xbox games.

This means that bitcoins work without any regulations. Even, people are using it in those countries where they have no permission.

Even for regulators, it is difficult to trace its transactions.

It is an alternate plan for those investors, buying stocks on stock markets.

Now, those people are investing tons of money in buying and selling bitcoins who used to invest in stock markets.

Is Bitcoin Trading Easy for Beginners?

Trading bitcoin is easier than any other investment on a stock market or mutual fund.

You just need to open an account with the crypto exchange without the involvement of a third party like banks.

However, there are a lot of risks associated with its buying.

Those who have no knowledge, have lost tons of money in trading bitcoins.

However, there are plenty of people who cashed out tons of money with little investment in these stocks.

However, they made huge cash with a proper strategy and planning and got knowledge of how to start bitcoins trading for beginners.

For example, there are people who have not invested in bulks and rather made investments in installments.

There are others who had made a lot of investments for long period spanning two to five years. They are such people who have really made money.

Those were in a better position who invested for around ten years and they made tons of money on buying and selling bitcoins.

How to invest in Bitcoins Stocks? (How Does Bitcoin Work)

There are different marketplaces called ‘bitcoin exchanges to buy and sell bitcoins. The most popular marketplace is ‘Coinbase’ along with other platforms like ‘Bitstamp and Bitfinex’.

However, many people are concerned about security as hackers may steal money.

In 2016, hackers had stolen tens of millions of dollars from Bitfinex.

However, it was the past story. With the passage of time, the security of bitcoins has been improved and there are least concerns in this regard.

How to buy bitcoin with cash for Beginners?

Just open an account with the crypto exchange, link with your bank account, and buy bitcoin in your local currency. This is how bitcoin works.

In trading bitcoins, you don’t need to open an account to buy and sell this digital currency. The main reason is there is no third party involved in this trading.

Marketplaces of cryptocurrency exchange offer you a direct opportunity to trade bitcoins. You can even withdraw digital currency to a private wallet.

In the entire process, bitcoins are in your full ownership without involving any middlemen like Banks.

However, there is no bitcoin account available with a CDF broker. But many people don’t’ know about it. You can invest it through this broker. However, this mechanism is regulated. But you will not have any concern about hacking money from your private wallet by using a CDF broker.

Connect Your Bank Account with Exchange

There is an easy way to connect your bank account with a new crypto exchange to trade bitcoins.

You will have the option of linking your bank account with crypto exchange while setting up the entire process.

You can even transfer money from your bank account to a crypto exchange to buy bitcoins.

Even you can transfer your bitcoins to your own wallet.

However, in this process, there is the possibility that hackers may hack your account.

Tips to Place Your Order

First, you need to set up your account with an exchange. Following this, you need to connect it with a digital wallet that may be software or hardware.

Now, you are ready to place orders.

Even, you can even use your local currency to buy bitcoin.

After your order is successful, you will be able to store bitcoins in your account on an exchange or digital wallet.

Then, track your currency rates and keep an eye on the rate of bitcoins’ ups and downs.

Best Strategy to Trade Bitcoins

Different people follow different strategies to invest in stocks on the stock market, mutual funds, and even bitcoins.

The trading of bitcoins is more volatile than investing in stock markets. Therefore, a better strategy is considered to make profits from short-term buying and selling.

Sometimes, bitcoins prices face a sudden fall and you may need to hold stocks for long to recover them.

There is also another option of trading when people hold bitcoin for a long. The objective is to make higher profits.

Is trading bitcoin profitable?

Though the price of bitcoin has been volatile. However, there are certain ways that people follow to make money.

Trading bitcoin may be profitable through short-term buying and selling.

However, others believed that holding long terms stocks may be the best option to cash out larger amounts of cash.

However, it depends on your strategy, experience, and finances.

Minimum Bitcoin Investment

The best strategy for beginners is not to dive into the investment of tons of money to buy bitcoins.

It is more volatile than investing in stocks markets. Therefore, you may lose entire funds.

You can start investing in bitcoins with a little amount of money. For example, you may start with $50 dollars per day limit.

After you gain experience and understanding of bitcoins trade, you may increase the limit investment to $100, then $500, and even $1000.

How to buy bitcoin with cash app

Cash App provides an easy solution to buy bitcoins, being user-friendly. In just a few steps, you can complete the transactions of buying bitcoins through the Cash App.

If you are keen to use Cash App to buy bitcoin, just tap the Bitcoin tab on the home screen. Then tap, Buy BTC and enter an amount. Then you can confirm the transaction to complete the process.

It also helps send Bitcoin wallets you own or even to other users.

How to Invest in Bitcoin Mining

There is another option to make money through bitcoin mining.

At the time of creation, there was an upper limit of 21 million bitcoins.

Therefore, you can make money by mining (discovering) new bitcoins and their transactions.

However, mining needs powerful equipment to complete this process.

List of Brokers and Exchanges to Buy Bitcoins

There are two ways of trading bitcoins. Firstly, you can either buy it through exchange or marketplace.

The second option is you can buy it from the broker.

Here is a complete list of different platforms to buy and sell bitcoins.

1: eToro

This is a globally recognized platform to buy and sell bitcoins.

It offers stocks, funds, and investment worldwide but it is currently trading crypto in the United States (US).

This platform enables you to copy the crypto traders’ investment strategies with its CopyTrader Technology.

It further offers you CopyPortfolios which work like Crypto Robo advisors to manage portfolios in the most professional way.

Its unique offer is to offer a trade up to $100,000 in a paper account without diving into risking your own money. However, this platform charges up to a 5% fee and offers its own crypto wallet.

2:Gemini

This platform has its own cryptocurrency-stablecoin — the Gemini dollar (GUSD) that is linked to the U.S. dollar.

It offers you not only trading of cryptocurrencies but users can store digital currency in a digital wallet.

You have the opportunity to earn up to 7.4% APY interest if you hold selected cryptocurrencies in your Gemini account.

It also provides a third-party clearing service. That is a payment platform and a credit card.

3:Coinbase

Investors considered it to be the best of all exchanges where you can buy and sell all cryptocurrencies including bitcoin.

You can even use its hot wallet and trade between different cryptocurrencies.

It has also Coinbase Pro that provides an interface dashboard. It has all information about real-time order books, trade history, and charting tools.

4: Webull

It is an investing app you can use to trade free of commission.

It offers Roth IRA and traditional accounts to trade stocks, options, and ETFs.

The Webull also allows you to sign up for the waitlist to trade bitcoin.

5:Robinhood

It offers bitcoin, litecoin, bitcoin cash, Dogecoin, and bitcoin. You can keep bitcoin and other digital currencies on the same app along with other investments.

It also offers a 24/7 trade of bitcoin with commission-free services.

This is the only investment App broker that allows you to trade bitcoin without digital currencies.

It also provides a chance to trade options, stocks, and exchange trade-related funds (ETFs).

6:Wealthfront

You can buy and sell two main cryptos ETFs- Grayscale Ethereum Trust (ETHE) and Grayscale Bitcoin Trust (GBTC).

You can invest in bitcoin and other digital currencies without actual investment in crypto.

7:Bisq

Bisq is the most popular trade exchange and even you can link it with a bank account if you only trade bitcoin.

But, its fee is higher compared to other platforms.

8:Biance.US

It offers trading digital cryptocurrencies at a lower fee. Its services are equal to other platforms.

Biance.US also offers you to use your bank account to deposit money. It has an ACH deposit limit worth US$ 5000.

9:Kraken

It provides services to buy and sell bitcoins. You can use U.S dollars, Canadian dollars, Japanese yen, and British pounds to trade bitcoins.

It is popular with its unique feature of margin trading.

However, it offers the service of funding their account with credit or debit card to intermediate or pro verified users. This exchange platform offers services to the most advanced investors only.

10:Unifimoney

It has a partnership with Gemini. You can use this platform to buy and sell 33 cryptocurrencies

Meanwhile, it manages all finances on one App where you can invest and spend.

You can also receive up to $5,000 in bitcoin at the time of signing up for an account.

Even it also enables you to invest in US stocks and ETFs besides trading in cryptocurrencies and precious metals.

Sum UP

You should be aware that trading bitcoins as a beginner is gambling.

You should lose a lot of money if you invest in bitcoins without knowing about it.

First, you should get its knowledge, its pros, and cons along with risks associated with it.

Then start investing in bitcoins with little money as a beginner.

The investment experience and subsequent success will boost your knowledge and confidence.

First, learn how to start bitcoins trading for beginners. Then, you may increase your investment portfolio to cash out larger amounts of bitcoin.