Bitcoin trading is different from buying and holding. In this trading market you need to buy bitcoins at lower price and sell them at higher price within a short interval. Before you decide to invest your money in bitcoin trading, it makes sense to understand deeply everything about it.
Bitcoin or XBT is popularly recognized as a digital currency and no actual money or coins actually represents. This currency is stored in the user’s cloud storage or digital wallet. Unlike other online payment methods, using bitcoin involves lower transaction charges.
Starter’s guide in bitcoin investment
1. Bitcoin investment is similar to investing in commodities
If you’re familiar with the various forms of investments, you can easily learn bitcoin investment. This is similar to investing in commodities, the only difference is that you’ll use cryptocurrency when doing online transactions, bidding, and selling.
2. Bitcoins are rare
Just like gold, it is quite challenging to find bitcoin. It’s because there are only 21 million bitcoins throughout the world. That’s why bitcoins are valuable and may come with higher value in the coming years.
3. Keep bitcoins on your digital wallet
If you have bitcoins make sure to keep them on your digital wallet and not on the exchange. There are other wallets where you can store your bitcoins, but choose the reliable one.
4. Be smart in buying bitcoins
When buying bitcoins, you must be smart and don’t buy in a single trade. Instead, you should purchase specific amount every month so that you can monitor what you have bought and sell.
5. Invest only the amount you’re willing to lose
Bitcoin investment can be risky but rewarding. That’s why beginners should invest only the amount that you can afford to lose. This also makes sense of studying and learning the loops about investing in bitcoins.
Once you have a bitcoin wallet, the next thing to do is to link it to your credit card, debit card, or PayPal. You can but bitcoins using Paypal or credit card or purchasing with cash.
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Bitcoins can be used for trading and mining and either of the two will make you money. As a rule of thumb in trading, you must purchase bitcoins with lower value. To earn more profit, the key is to sell them in a higher price.