All That You Needed to Know About Bitcoin Trading If You Are a Newcomer
The Bitcoin market is growing aggressively and rampantly today as compared to the previous times. This is a leading market because a huge amount of the mass wants to trade in Bitcoins. But there should be some valid reason why you should want to invest in the Bitcoin market in spite of knowing that it is a very volatile form of trading that can give you absolutely no guarantee of sure returns.
Reasons Why You Should Invest in Bitcoin
Immense Store Value
It has been stated by analyst, Zach Pandl that it has great value like the assets of gold. He has also mentioned that it has a store value of 20%. This actually means that Bitcoin will not depreciate in value because will increase, unlike other items. Even gold value gets depreciated at times but Bitcoin will not. So, this should be reason enough for you to invest if you are a newcomer to this domain.
High Return Potential
Between March 2020 and April 2021, Bitcoin experienced growth of 1352% and 132% between the months of July and November of 2021. So, you can see that it has the potential of increasing greatly when it is actually increasing. However, always remember that it is not going to go increasing always.
Again, the value of Bitcoins can decrease. So, it is for you to judge the market when you do plan to invest. But again, there is nothing to worry about because every market experiences such fluctuations from time to time.
Benefits of Diversification
Here is that bit of news that you might have wanted to hear. You might experience a fall in other markets, but Bitcoin market may be stable and you win at that moment. You might stand to gain from this market. So, diversify to different options for a better future and a better profit.
Tips For Beginners
Now for getting started, there are certain tips that if you follow, you can easily become part of the game and even generate profits. These tips when put simply are as:
- Research thoroughly to find out whether Bitcoin is actually for you.
- Is it long term or short-term investment that is attracting you?
- Decide and choose that trading method that suits you best
- Learn trade placing and how to read the charts for safety and security
- Choose the exchange that you want before you begin trading
How To Get Started with Bitcoin Trading?
Here are a few steps to get you started with Bitcoin trading:
- Step 1 – Create a crypto wallet. You can choose any of the crypto exchanges that are active in the market. Give your identification information and other related details.
- Step 2 – Put funds into the account that you have just created. This just means connecting your bank account to your crypto brokerage.
- Step 3 – Choose the crypto that you want to trade in. Most people opt for either Bitcoin or Ethereum, but as an individual, you are free to choose your own crypto and there are many to choose from.
- Step 4 – Select your plan of action. There are many master plans to choose from. However, if you are a beginner then you would do well to follow the Elliott Wave Theory.
- Step 5 – Go for automated crypto trading. It aids you in making quick and easy money.
- Step 6 – Cryptocurrency should be stored. Funds should be stored on the exchange for easy access. But if you have long term plans then a crypto wallet is what you need.
Wrapping It Up with The Positives and Negatives of Crypto Trading
Cryptocurrency is extremely volatile as you know, so you should first get this into your head before actually beginning trading. The price of your crypto could vary in one day so much so that you may lose money a lot. And if you are not a person who can take risks, then crypto trading is not for you. So, you should first weigh out the pros and cons before making a dive for it. Do not go by the hype that surrounds Cryptocurrency.
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