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How to Trade Bitcoin – 4 Simple Steps to Get Started

While cryptocurrencies keep evolving over the years, more and more users wonder how to trade Bitcoin and if the asset is actually worth investing time and effort. As one of the most powerful cryptos in the market, BTC has been showing enormous performance over the last decade becoming the dominating force for investors seeking better and longer-lasting profit opportunities.


In this article, we will describe how the asset actually works and as well as 4 crucial steps to implement a simple Bitcoin trading strategy that will let you dive deep into the cryptocurrency market.

Step #1 – Learn Bitcoin Basics

Just like investing in any other asset, Bitcoin trading strategies are hard to implement without learning the basics. Despite all available resources and media influence, you should not ignore the learning curve, as crypto is quite a different trading instrument if compared to traditional ones.

What Is Cryptocurrency?

It is a digital peer-to-peer asset designed to complete transactions within the blockchain environment created by the BTC wallet holders. Each operation is completed with an individually marked signature used to protect personal users’ data and keep their crypto safe. Despite the fact that all operations can be tracked by any person, he or she will never be able to reveal a user’s ID or other personal information. Additionally, all transactions and operations can be confirmed only via the mining process.

Knowing the market you are about to enter is vital in case you only start learning how to trade Bitcoin and how to establish a successful BTC trading strategy.

Step #2 – Explore Bitcoin Trading Strategies

We read numerous stories about cryptocurrencies skyrocketing and generating enormous profits as well as crashing down and hitting the bottom. Nevertheless, the asset will always have a huge target audience not only because of profit expectations but also volatility and unexpected moves, which makes it possible to apply various Bitcoin trading strategies depending on your preferences.

Generally, you will have two major options:

  1. A simple Bitcoin trading strategy is to use the asset for long-term investment. You can consider BTC as a trendy resource that supports the technological process. A high-performing instrument that can be compared to blue-chip stocks, for example.
  2. The second way to trade Bitcoin is to consider it as a brick-to-mortar asset and trade the asset within a short timeframe (speculate). The key benefit here is that, unlike other financial markets, BTC trading is available round-the-clock, which makes it even more flexible.
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Step #3 – Consider Hits and Misses

No matter what Bitcoin trading strategies you choose, it is very important to perform a tactics assessment and define all crucial strategy pros and cons to managing risks in the future. Apart from 24/7 market availability, BTC trading can have the following advantages:

  • Non-regulated assets. The first thing you should know about how to trade Bitcoin is the fact that all operations take place in a FREE environment, as crypto is not regulated and uses a decentralized network instead. Additionally, BTC does not rely on the news or geopolitical events.
  • Easy-to-Start. Bitcoin trading strategies are easy to implement as the asset comes with enhanced accessibility. To get started, you only need to create a valid Bitcoin wallet and address, find a trusted broker and open a trading account.
  • Fraud Protection. Every BTC transaction is 100% safe. Your ID is protected from thefts or frauds, as each transaction can be confirmed only with a unique digital signature. Additionally, the system lets you backup and encrypt your coins.

Like any other strategy, Bitcoin trading comes with specific risks and downsides that you also need to clearly realize. They involve:

  • Immaturity. Although Bitcoin has been in the limelight for over a decade, some experts say the asset is quite immature and it requires a few more years to stabilize and avoid turbulence. Besides, the market needs some time to become less emotional.
  • Rapid Price Swings. While BTC is not influenced by geopolitical and other events, it is quite hard to predict the price movement, as the asset exists in a non-regulated environment.
  • Security Issues. Despite all protection means, there is still a risk of hacking, as any technology or software is not ideal. However, the developers keep inventing new security tools to enhance digital protection.

Step # 4 - Start Trading

Now, you are prepared to utilize one of the chosen Bitcoin trading strategies. Make sure you have a valid crypto wallet and a reliable broker with the best trading conditions. The next stage is to choose a pair to trade (crypto/crypto or crypto/USD) depending on your expectations. Just keep in mind that some pairs can only look promising but in reality, are more complicated and trickier.

This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.