Find an Exchange
Bitcoin trading is actually pretty straightforward once you get the hang of it. Being the premier cryptocurrency , it is pretty straightforward to buy and sell them as and when you want to. Bitcoin has a history of volatility which has brought in a lot of traders and media interest into the ecosystem. It is extremely easy for anyone to trade Bitcoin as the barrier for entry is so low.
So, how do you get your slice of the pie? What do you have to do to make sure that you are going to trade bitcoin in an efficient manner? Well, this guide will help you make your trading decisions. The reason why you should invest in Bitcoin, and cryptocurrencies in general, is because there is nothing quite like it.
There are several features that makes Bitcoin trading both exciting and unique. Binance Jersey allows users to trade euros and British pounds with bitcoin and ethereum and access digital asset management services.
Quite similarly, Australian markets lost USD 30 billion. However, Bitcoin was a whole different story. From all these three cases, we can make one simple and obvious conclusion.
People have a tendency to invest in Bitcoin when faced with unstable markets and obstacles confronting fiat currencies. Unlike stock markets, Bitcoin is open 24X7. The reason being stock markets are specific to the country they operate in and usually reflect the working hours of that country.
Anyone can purchase bitcoin on most of the exchanges. Bitcoin and cryptocurrencies, in general, are infamous for its rapid and frequent price movements. This volatility can help traders make an easy, quick buck. Before you invest in an asset, you should at least know how it works. We have covered the mechanics behind the crypto several times here in detail. However, for the uninitiated, we will give a brief overview.
If you are already aware of the mechanics, then please skip to the next section. The blockchain is a time-stamped series of an immutable record of data that is managed by a cluster of computers not owned by any single entity. Each of these blocks of data i. Ok, so what does that mean in simple terms? Imagine a universal ledger that anyone can download and write into. Anybody who has a copy of that ledger can:.
That is what Bitcoin gave to us, the first proper implementation of a technology that can act as an immutable and transparent ledger.
This innovation gives us a system that is completely incorruptible and free from human corruption since each and every transaction made into the blockchain can be checked. Through public key cryptography. Every Bitcoin user has a private key and a public address that are both mathematically derived from each other. So, how does it work? It is actually pretty straightforward. The public address is like your account number and the private key is like your PIN code When you receive Bitcoins, people will send it to your public address.
You can then send your Bitcoins to anyone via your private key. So, going by that explanation, we can make two observations:. This should give you a brief idea of what Bitcoin is and how it works. This is the reason why Bitcoin has become such a big deal. The exchange serves as one of the most critical functions in the crypto ecosystem. It acts as a portal between the Fiat world and the crypto world. A cryptocurrency exchange is similar to a stock exchange, but with a focus on cryptocurrency tokens rather than stock trades.
Put simply, a crypto exchange is a platform where customers can buy and sell cryptocurrency assets. Broadly speaking, there are two forms of crypto exchanges:. Fiat to Crypto exchanges helps you buy Cryptocurrencies in exchange for Fiat money. These exchanges have been designed to be as beginner-friendly as possible. Coinbase and Bitbuy are perfect examples of fiat-to-crypto exchanges.
Binance is a fine example of a crypto-to-crypto exchange. These are the exchanges that are geared more towards the experienced traders than the beginners. Crypto exchanges deal with an insane amount of money on a daily basis. In fact, check out how much the top 5 exchanges ranked according to transaction volume in the last 24 hours measure up:. So, where exactly do you get started? If you are Canadian then the answer is pretty straightforward. Bitbuy is a Canadian owned and operated digital currency platform.
Founded in , Bitbuy has consistently provided Canadians a dependable and trustworthy platform to buy and sell their cryptocurrencies. As already explained, Bitbuy was a fiat-to-crypto exchange where you can deposit Canadian dollars directly onto their website, to be exchanged for digital currency. Their headquarters are located in Toronto, Ontario and their services are available for Canadian traders across the country. Another interesting feature of Bitbuy is that there are no fees for withdrawing your cryptocurrency.
You can send your crypto to a private wallet , free of charge. This makes it ideal for long-term investors who want to hodl on to their cryptocurrency. Your first-time purchases will be held for one to three business days for security reasons.
If you have a verified account and have made more than three transactions on Bitbuy, your funds will be available in real-time. The moment you become a verified member, you are entitled to use any payment method you want to fund your Bitbuy account. For verfiication, you will need to submit the required KYC details. The documents you must submit are:. The entire verification process usually takes between one to three business days.
Bitbuy also has very prompt customer support. You can do the following to receive support on your query:. Bitbuy is a division of First Ledger Corp, which is a Toronto based blockchain and digital currency company. They have stated that the exchange complies with all Canadian laws. They have also taken the following precautions to keep your data safe:.
If you are a Canadian citizen, then you can go to Bitbuy right now and create your own account to start trading. Click here to create your account. There are a lot of ways that you can trade Bitcoin and cryptocurrencies and it is entirely dependent on what you want to gain from your investments and how much time are you willing to give to trading.
As per IG , there are four main kinds of trading:. Day traders open and close their position within one single trading day. This strategy works for traders who want to take advantage of short-term opportunities in the Bitcoin market which may come about in light of developing news or emerging patterns. Swing traders catch trends in price movements the moment they form and hold onto it until the trend experiences a reversal.
This strategy is great if you want to take advantage of market momentum. Make several intra-day trades on minor price movements. If you are the kind of trader who would make several small frequent profits rather than wait for a big opportunity,.
If you are a long-term holder or you want to just get into the crypto market and try out your hand then passive trading may be ideal for you. The idea is as straightforward as it is timeless. Wait for the price to drop to a certain level and buy-in. Wait for the price to go up to a certain level and buy out. Unlike the other forms of trading, the time length between buying and selling can last for several days, weeks, months, and even years.
The two most important tools to keep in mind while trading, are fundamental analysis and technical analysis. This analysis looks at the big picture instead of price movements. When you are doing a fundamental analysis of a coin, you are looking at:. Keeping yourself up-to-date on all the current events is imperative for solid fundamental analysis.
Technical analysis is a tool, or method, used to predict the probable future price movement of a currency pair, cryptocurrency pair, or stock. It can be creative and dynamic which helps you gain a very deep perspective into the coin. You can read the first part of our two-part guide on technical analysis to gain more insight. Sure you can gain a lot but you can lose a lot as well.
Take your time and do some research. Learn about the coins and learn about certain trading strategies. Learn about the exchanges and choose the one which will benefit you the most. Also, people tend to invest in the same coins that their friends are investing in.
While there is nothing in taking advice, you should combine advice with your own research.
Why Trade Bitcoin?
Bitcoin is one of the time-tested cryptocurrencies and has over time proven to be quite profitable for both professionals and beginners. This digital currency has a huge market and is traded on all the exchanges you may ever come across, making it highly liquid. But perhaps what contributed greatly to its ability to attract many investors is its history of volatility and bubbles. In this guide on trading Bitcoin for beginners, I will share with you everything you need to know about trading the coin to enable you to trade like a pro. It is essential to learn why you should be trading Bitcoin prior to investing in it — below are some of the reasons why Bitcoin trading is important.
How to Trade Bitcoin CFDs in 4 Easy Steps
Bitcoin is one of the time-tested cryptocurrencies and has over time proven to be quite profitable for exchxnge professionals and beginners. This digital currency has a huge market and is traded on all the exchanges you may ever come across, making it highly liquid.
But perhaps what contributed greatly to its ability to attract many investors is its history of volatility and bubbles. In this guide on trading Bitcoin for beginners, I will sstart with you everything you need to know about trading the coin to enable how do i start trading bitcoin on the exchange to trade like a pro. It is essential to hw why you should be trading Bitcoin prior to investing in it — below are some of the reasons why Bitcoin trading is important.
Bitcoin was the first cryptocurrency to be established back co The coin has been around for close to a decade. More recently, various government agencies are beginning to be keen on incorporating Bitcoin and Blockchain in their operations. You can find more details about this in the video below:. Bitcoin operates on a market where trading takes place at any time of the day regardless of where you are. Unlike most other digital currencies, Bitcoin is acceptable in most parts of the world as a medium of exchange in various establishments, such as restaurants, transport companies, investment vehicles, and so on.
The price pattern of Bitcoin has always been shifty. In especially, Bitcoin has experienced some of the major shifts in its prices, both upwards and downwards as may be seen below:. This is the first step when looking to invest in Bitcoin to enable you to buy or sell your digital assets. At the moment, Bitcoin does not have an official trading platform; however, as I mentioned earlier, you will find it on almost any exchange you can ever think of. Think of Bitcoin as the backbone of any cryptocurrency exchange and it would probably be insane for any to miss it.
Due to not having an official exchange, a lot of users find it difficult to identify the right platform for trading Bitcoin. Safety standards: It goes with saying that safety is a fundamental ingredient in the cryptocurrency space.
Many users lose money every day due to coin burglars; be sure to research the level of safety in a platform using online reviews. Look out for how do i start trading bitcoin on the exchange cases of a security breach in the recent past.
You want to avoid exchanges with hacking rtading or system failure. Reputation: A good exchange has its users speak for it — check out various forums such as Quora, Reddit, BitcoinTalk, and more to find out more about an exchange that you wish to sign up on.
You should be keen on finding out how efficient their customer support is, the experiences of other users, as well as the pros and cons of the platform. Of course, you should expect to find some flaws with every exchange, but you want to settle for something that is almost negligible.
Payment methods: The last thing you want to do is to sign up on a platform that offers payment methods that are not supported in your locality or, if supported, you have stsrt travel miles to access an agent or a dealership.
Transaction fees: Yup, you guessed it right! Some exchanges offer free deposits and withdrawals, while others charge for all other transactions except for trading.
Whatever the case, do a thorough research of some of the lowest if not nil-charging platforms for user transactions. The point is, signing up on a platform that is easy to navigate will save you tons of trouble if you ask me. From our checklist above, below are some of the platforms that pass the set standards of a great exchange. Coinbase is among the top-rated bltcoin globally. They have some of the bests security measures and trade only a few selected coins Bitcoin obviously included.
Due to their quality and security standards, their expansion to many countries has been quite fxchange. At the time of writing this post, the exchange operates in 33 countries around the world. Coinbase is said to be the first regulated exchange to start trading Bitcoin, an asset thee now forms the biggest chunk of their daily trading volumes.
This is oh popular platform that trades Bitcoin and other digital assets. Binance originated in Statr but moved its headquarters to Malta, biycoin is one of the crypto-friendly countries. This platform is fairly new in the market, having only been launched instxrt they have managed to match ln to the safety, trading, and customer support standards that have only been achieved by platforms that have been around for close to a decade.
Exfhange terms of trading, Binance has consistently remained among the top five highest trading exchanges globally. Kriptomat is a product of Slovenian crypto expertise and it offers an extremely how do i start trading bitcoin on the exchange experience.
Kriptomat was established in Estonia, one of the most progressive tech regulators. They have been issued operating licenses by the Financial Intelligence Unit for Providing services of exchanging a virtual currency against a fiat currency and for Providing a virtual currency wallet service.
The service currently allows you to exchange srart cryptocurrencies and tokens to and from Euros. Starh is also available in 20 languages, making it a great choice for people who want to use their native language. In addition, their blog offers educational content, mostly geared towards beginners, but also useful for people wanting to remain informed about exchqnge crypto industry.
Established inCex. Just excbange Cex. The exchange initially had most of its operations limited to Europe but has over time spread its wings to 78 countries around the world.
Bitstamp is popularly known for its ability to cater for beginner and advanced users through its two sets of interfaces: beginner and advanced. Kraken is an exchange that operates globally and has been around for five years. The list goes ecchange and on, but hopefully, you can now be able to choose from the five listed exchanges or use the checklist above to identify a suitable Bitcoin trading platform for you.
Investing in Bitcoin denotes that one buys the coin and holds it for the long-term. The fundamental strategy behind investing in Bitcoin how do i start trading bitcoin on the exchange that such investors believe that despite market corrections, the price of their assets will ultimately go up.
On the other hand, trading Bitcoin means that an investor purchases the coin and sells it after a short period of time, a duration normally occasioned by small moves in market prices. So, really exchangd difference lies in the duration of holding your Bitcoin; investors hold their assets longer while traders hold theirs for a shorter period of time.
All Bitcoin traders have one thing on their minds when buying the coin: making profits. But tne is as far as their goals align, how they achieve this differs from one category of traders to the. There are typically three types of traders in the cryptocurrency markets; whichever one you choose to become or ln are is really a matter of personal preference.
Day traders are people who execute several trades during the daytime, trying to mint as much profit as possible with fairly short moves that could last seconds, minutes, or hours. Exchangs traders statr a lot of time making dozens hiw not hundreds of trading moves within the 24 hours of a day.
The idea behind this type of trading is to sell out as fast as possible by locking in any small profits that are generated. Swing Hos This category of traders profit from the slight swing in the prices of assets. Swingers study the trend of prices and try to enter into a market at the start of a price movement and stay on until the movement stops, then get out with profits.
Unlike their day trader and scalp counterparts, they try to see the bigger picture in the market; they could hold on to assets for weeks as they monitor the movement in prices before bouncing off the market with profits.
There is no perfect way of predicting the market price of Bitcoin or any other asset. However, you can develop a set of rules, formulas, and predictions to help you trade profitably even in the most volatile markets or use existing and proven ones. The trrading important thing is to always exchanfe in ttading as way that your closing balance remains bitfoin the positive. There are two methodologies that are commonly used in analyzing any asset traded in an exchange: the fundamental or the technical point of analysis.
This technique uses the trends in price movements and trading volumes to try and establish a common pattern in all the possible scenarios.
Analyzing prices using the fundamental approach: This approach would analyze Bitcoin prices using influencers such as news about the coin, latest technological developments such as the lightning network, regulations affecting thw currency, among other issues.
Analyzing prices using the technical approach: As the name suggests, this approach tends stop trading china bitcoin rely more on the bitcoi data about Bitcoin. Regardless of what is going on around the world, the technical fhe will use verifiable data to predict the price of an asset.
For instance, when there are no new or latest happenings around the world, you may opt to lean towards the fundamental approach; but when things are stable, I recommend going with the technical approach. The order book: This is a market register of all the buy and sell orders.
Bitcoin price is the price of the last trade that occurred on a specific exchange. It is essential to understand that as opposed to fiat currencies, there is no standard price for Vo prices may vary from one exchange bitcoon another or in different countries.
Volume: This represents the amount of How do i start trading bitcoin on the exchange that has been traded within a certain period of time, usually 24 hours, a week, a month, or a year. Limit order: This is a market order that allows you to buy or sell Bitcoin and other cryptos at a specified price.
That is to say, if the requirements for your order are not met, your order sgart remain unfulfilled until such a time that they shall be met. Stop loss order: Stop loss orders are sell orders that restrict your selling price from tradiing below a limit specified by you. How do i start trading bitcoin on the exchange type of order shields sellers from incurring losses resulting from negative fluctuations in the prices of their assets. Instant or market order: Unlike a limit or a stop order, this is an order with no conditions that need to be met prior to being.
Market orders allow buyers or sellers to set the amount of Bitcoin they wish to dispose or acquire and the exchange matches them with the corresponding how do i start trading bitcoin on the exchange. Click maker is pretty much a seller of an asset in an exchange; however, this is a different kind of seller.
Since makers help to make the market, they are charged lower fees by the exchange. A taker, on the other hand, places a market order for an asset that has already been placed by the maker; therefore, their orders are fulfilled instantly.
Takers take away business from the market, tradung paying more fees as compared to makers who bring business to the market. A good number of people have no idea what those complex charts on the home pages of various exchanges mean. But interpreting these charts is never that hard; here is what om need to know about price charts. Candles sticks are an ancient Japanese way of conducting a price analysis and originated in the s when trading rice. Depending on the color of a candle, you will be able to tell whether the opening price or the closing price was high or low.
Generally, a green candle signifies an opening price that was lower than the closing price while a red candle shows that the opening price was higher than the closing price. Green candles show a rise in the price of an asset during a certain period, while the red ones show a fall in the price of an asset in the jow period. Below are some of the time-tested tips for both stadt and advanced traders; try as many as possible to apply them when trading.
Trading Bitcoin profitably can be difficult especially when the market keeps correcting — however, if you develop a solid plan and familiarize yourself with the things discussed in this guide, you should be able to trade more profitably than an averagely experienced trader even as a beginner. Finally, as we come to the end of this guide on trading Bitcoin for beginners, we have covered most of the areas in this trade that you can start trading today.
Your email address will not be published. Previous Article. Next Article.