New Generation Of Traders
If you are new to the Bitcoin trading world, you are not alone. Although Bitcoin and other cryptocurrencies have been around for a while now, there are still many that have heard of Bitcoin and want to get into the market, but know little about it. Studies are finding that the new generation of investors are buying Bitcoin and other cryptocurrencies as a store of wealth rather than investing in the traditional markets. This has opened the door to a whole generation of new traders that are hoping to put their bitcoins to work. Knowing where to start is key to having a basic understanding of how trading Bitcoin is done. I am not an expert trader and this is not advice, only my opinion based on my research and my own experiences. The Bitcoin market is very volatile so please do not invest more than you can afford to lose and do plenty of research on your own. That being said, let’s take a look at a few things that have helped me understand the basics along my journey of trading Bitcoin and other cryptocurrencies.
With a quick internet search, you can find thousands of websites relating to the history of Bitcoin and why it exists. It is helpful to have a general understanding of blockchain technology and how it relates to Bitcoin.
Learn The Language
Words like HODL, FUD, and, FOMO to name a few, will probably be new to you. Most of these words are abbreviations of phrases. For example, FOMO means Fear Of Missing Out and FUD means Fear-Uncertainty-Doubt. Knowing the lingo and what it means will help you when engaging in conversations about trading and the Bitcoin market.
Find An Exchange
Unless you know someone willing to sell you some of their bitcoins, you will need to go to an exchange to purchase them. There are quite a few of them to choose from and finding the right one for you might be confusing at first. Each crypto exchange has its pros and cons so looking into several before choosing is wise. The most popular one is Coinbase. It is headquartered in San Francisco, CA, and is probably the most user-friendly exchange for those just starting. Coinbase gives costumers multiple payment options such as credit cards and bank transfers to purchase bitcoins and they make it just as easy to sell your bitcoins and convert them back to fiat.
Get A Wallet
Wallets are where you securely store your bitcoins. There are different kinds of wallets to choose from. If you are trading on an exchange, the exchange will offer an online wallet for you to use to trade from. It is wise to purchase an offline wallet to store the bitcoins you are not using to trade with. Two of the most popular ones are the Ledger Nano and the Trezor. These are portable, easy to use, and highly secure.
Choose A Trading Platform
Now that you are all set up, it is time to trade. Trading is not easy so it is wise to research and learn about it before jumping in. Social media sites and internet searches are filled with traders eager to teach strategies and basics to newcomers.