Start trading bitcoin for beginners 2023
How do I invest in Bitcoin? I want to trade bitcoin but not sure where or how to start? Our complete Bitcoin trading guide below will explain everything you need to know about how to get started such as how to choose the optimal trading platform, deposit and open trades, as well as key terms, tips and strategies that you should know before you start trading. By the end of this guide, you will be able to trade bitcoin with confidence.
What is bitcoin?
Bitcoin is an encrypted and virtual digital currency that is not subject to any central authority unlike traditional currencies. Bitcoin can be traded on the open market in a way that is not controlled by any central government. For example, the decisions made by the US Federal Reserve have a direct impact on the value of the US dollar. Bitcoin’s value is not affected by the decisions of any central bank. This is part of the appeal of bitcoin.
Investing in Bitcoin is the process of speculating on the price of Bitcoin in order to turn a profit. As opposed to just buying and holding shares. When you trade bitcoin, you adhere to a few different standards.
What is the secret of the attractiveness of bitcoin trading?
Bitcoin attracts investors because its volatility provides the potential for profit. Of course, this volatility also provides the possibility of losses occurring just as easily. If you want to trade bitcoin, it is important to educate yourself about the bitcoin market – and make sure you assess your risk tolerance.
Is how to trade bitcoin similar to forex trading?
Bitcoin is a digital currency, so investors and traders may think of it in terms of the foreign exchange (forex) market. Forex is by far the largest market in the world, with a daily turnover of about $6.6 trillion, according to the 2019 edition of the Bank for International Settlements (BIS) triennial survey.
For starters, you are just placing an order to buy or sell bitcoin for the purpose of looking for price action. Thus, you have no intention of using it as currency. You are only looking at an asset through the lens of market action. The exact parallel in the foreign exchange market. In the foreign exchange market or forex, US dollars, Japanese yen and other world currencies can be bought and sold at volatile rates. Although the underlying asset (the currency) can be used as a form of payment, in the forex market all that is cared about is the price movement of the currency. Trading Bitcoin and cryptocurrencies is just like that.
How to start trading bitcoin in 2023
How ever in bitcoin? To start trading Bitcoin and other cryptocurrencies, there are three steps:
The first step: choose the trading platform
To be able to trade Bitcoin or any other cryptocurrency, you will need a solid and reputable platform (broker).
The most stable and powerful platform, enables you to invest not only in Bitcoin but also in other most popular cryptocurrencies such as Ethereum, Litecoin, Ripple, Dash Coin, Bitcoin Cash and others (the best digital currencies for investment).
Second Step: Open a trading account
After choosing a trading broker, you will have to register and choose the type of account that you would like to trade through that suits your specific requirements. When opening a real trading account, you must go through three simple and easy steps:
- 1- Fill in the account opening form.
- 2- Proof of identity and activation of the account.
- 3- Funding the account, by depositing with a Visa card or bank transfer.
Step Three: Open your first trade
Then you download the trading platform on the device used for trading, whether it is a computer or a phone. After that, you can start trading Bitcoin and other cryptocurrencies supported by your chosen broker.
Best bitcoin trading platforms
How ever in bitcoin? Choosing the best broker for cryptocurrency trading is not easy. Do you find yourself drowning, while searching, among hundreds of advertisements and dozens of platforms promising you “the best digital currency trading experience”, “the greatest opportunity for fabulous gains”, “how to trade bitcoin easily”..!!
do not worry. Below we will give you some of the things that you should consider when choosing a currency trading platform.
How do I find the best brokers for cryptocurrency trading?
To find the best brokers for cryptocurrency trading, our expert team has developed a rigorous review methodology based on many years of experience. Our unique approach includes a 200-point analysis across 10 major categories for each broker. We look at everything from the licensing and reputation of the broker to the quality of the educational material they provide and the fees they charge.
Of course not every category has the same weight for an impressive trading experience, which is why we assign each category a different level of importance when calculating the bottom line. For example, licensing and regulation contribute to the outcome much more than educational materials.
When analyzing brokers for cryptocurrency trading, we also look at features that are important to you as a trader of bitcoin and its siblings, such as:
Wide cryptocurrency pairs and various trading options
The best brokers that offer you a variety of trading options for Bitcoin and its siblings, such as the ability to trade cryptocurrencies against other digital currencies, such as BTC/XRP, cryptocurrencies against traditional currencies, such as BTC/USD, and digital currencies against commodities, such as BTC/Gold. Our best brokers also allow you to trade cryptocurrency CFDs, and also provide the option of actually owning and holding cryptocurrencies, where you will be able to buy cryptocurrencies and sell them at a later time.
A wide range of altcoins
The best bitcoin and altcoin trading platforms should offer a variety of cryptocurrencies for you to trade, providing the most popular ones, including Bitcoin, Ripple, Ethereum, Litecoin, etc. We also offer some altcoins, such as Quantum, Steem, Stellar, and more. This ensures that you have plenty of trading opportunities.
Available payment methods
Another good feature is that the broker accepts deposits in BTC and other cryptocurrencies, and they also allow withdrawals in cryptocurrencies. If you prefer to deposit and withdraw in dollars or euros, you can rest assured that the best trading brokers also support traditional payment methods such as credit cards/bank transfers and e-wallets.
Excellent trading platforms
Since bitcoin trading requires different trading conditions to forex, one should make sure that the broker offers trading platforms that are efficient, secure and easy to use. We also make sure that these platforms are customizable and give you all the tools and indicators you need to succeed.
24/7 customer support
The cryptocurrency market is not as centralized as the forex market, so it never closes. This means that you need to have access to support around the clock should anything go wrong. This means that the best brokers are supposed to have account managers who are knowledgeable and ready to help you whenever you need them.
Factors affecting the price of Bitcoin
How do I invest in Bitcoin professionally? There are several main factors that lead to the rise or fall of cryptocurrency prices. The following report reviews the most important of these factors:
First: supply and demand
This is a basic economic principle. If a cryptocurrency has a high token supply with little demand from merchants and users, the value of the cryptocurrency will decrease. Conversely, if the supply of a particular cryptocurrency is limited and the demand is high, the value of the coin will increase.
This is related to the element of scarcity that drives prices and is one of the factors that drove the price of Bitcoin to its highest levels. The supply in Bitcoin stops at 21 million BTC — which is relatively low compared to other tokens — while demand has skyrocketed in recent years.
Second: speculation
Speculation is one of the most factors that can affect the prices of virtual currencies. Speculation can raise the price of an asset to very high levels, or it can also take it to sharply low levels.
Rapid and strong volatility is one of the things that distinguish digital currencies and open up the appetite of traders, because it creates opportunities to earn money through short-term buying and selling, but of course it comes with higher risks.
Speculators aspire to make huge fortunes by dealing in electronic currencies, but they buy and sell them very quickly, which leads to short-term fluctuations.
Third: organization
The perception of these currencies varies – from country to country – from recognizing these virtual assets, banning them or warning against their use, without banning them or considering them illegal, or being strictly regulated, and new decisions are being made all the time.
In the era of globalization, decisions in one country can affect the entire world. Cryptocurrency prices tend to respond quickly to any decisions regarding rationing or banning them, for example, when Japan announced that Bitcoin was considered a legal tool for trading, its price rose strongly in just twenty-four hours. Japan, which previously represented only 1% of the trading volume of Bitcoin, reached 6% after its decision to legalize dealing in cryptocurrencies, and even Japan achieved 55% of the global trading volume in some days.
And in the opposite example. When China earlier imposed strict measures on cryptocurrency, which caused a major crisis, especially since China generates about 60% of Bitcoin. However, it later eased these procedures and allowed mining companies to operate under much less stringent procedures, which greatly contributed to increasing confidence in cryptocurrencies.
Fourth: Media hype
Positive media coverage is one of the main factors driving cryptocurrency prices. Where positive media coverage causes a type of media hype whose dimensions are well known.
If a currency is getting some negative publicity, you will generally see that currency’s price decline. Whereas, if the currency itself gets major support and good media coverage, the price will surely increase. This means that prices are highly affected by human emotions and hype.
This pattern was most evident during the early days of Bitcoin, when major media outlets began to report in detail on the new currency. In light of the increasing media coverage of news and price fluctuations of Bitcoin and its siblings, in addition to some other factors, it has become difficult to determine the impact of the media alone.
Fifth: political developments and events
Events and developments around the world that seem unrelated to digital currencies can affect prices, as these assets are usually seen as an alternative to traditional currencies supported by governments, so when investors lose confidence in their paper money due to economic or political developments, they can resort to “ Bitcoin” or its peers, which leads to an increase in prices.
Some experts believe that digital currencies can replace real holdings of gold as a safe haven for value when things turn for the worse, and although the World Gold Council believes that these assets are too volatile to perform that task, analysts are likely to rise with the turmoil of global political conditions. .Digital currencies benefit from shaky confidence in fiat currencies, amid quantitative easing policies in which major central banks print fiat currencies with little cover in gold or traded commodities.
Terminology you need to understand bitcoin trading
Spread: This is the difference between the buy and sell price. This is similar to the spreads applied to forex.
Leverage: This is the leverage that is applied to a specific cryptocurrency. For example, BTCx100 has a leverage of 100 times. This means that your trading investment is able to control 100 worth of Bitcoins. That is, if you invest $100 in trading BTCx100, that means investing $10,000 in regular BTC.
Change: This is just an indicator of whether the value of the cryptocurrency has been increasing or decreasing over the past day. It should give you an idea of whether you want to enter a buy or sell trade.
Disclaimer: The content of this article is for informational purposes only. The information provided should absolutely not be considered as investment advice or a recommendation. No warranty is made, express or implied, as to the accuracy of the information or data contained herein. Users of this article agree that Money Secrets does not accept responsibility for any of their investment decisions. Not every investment or trading strategy is suitable for anyone. See the risk warning statement.
