In 2009, bitcoin was relatively worthless, and as such, nobody was interested in knowing how to trade bitcoin. But a decade down memory lane, cryptocurrency is on everyone's lips. Individuals, merchants, governments, and institutions now accept bitcoin in one way or the other.
Why does everyone want to know how to trade bitcoin? The answer is simple; bitcoin is the most valued cryptocurrency in the cryptocurrency market. Also, bitcoin is one of the best investments anyone can try his hands at the moment. In the past decade, the digital coin has made various people become millionaires and still raising more today.
Diversifying your investment portfolio by adding bitcoin is the wisest decision anyone can make. Apart from being somehow insured against inflation, its acceptability globally is on the rise. Besides, experts are postulating that the value could rise to $100,000 in the nearest future
How to trade bitcoin like a professional investor
There are several ways to trade bitcoin and earn decent profits, as well as minimize losses. If you are still confused about how to trade bitcoin, this article will guide you on what to do. For you to succeed trading bitcoin, you need first to understand that bitcoin investment is a real business, and you need to treat it as such. To reduce losses and increase your chances of making more profits, here are some principles you must adhere to:
- Buy bitcoins when prices are low and sell when prices appreciate.
- Avoid panicking in case of value getting plummets with sticking with your trade.
- Trading should be done without bringing your sentiments into the decision making.
- Get the necessary training before starting your journey and always study the market prior to opening any trades.
- Buy bitcoins from only trusted exchanges with good customer ratings.
- Never pour all your money into single trade. Always make sure to take 1-2% risk per trade to ensure you remain in healthy position regardless of the outcome of any particular trade.
- Do not leave your coins on exchanges; move them to your wallets.
- Set your take profit and stop-loss before commencing trade.
Where to trade bitcoin
You can trade bitcoin in different places or platforms. However, let’s quickly talk about a few of the places where you can buy bitcoin. Everything is not just knowing about how to trade bitcoin; it also involves knowing where to trade bitcoin, including others listed on the cryptocurrency market.
Crypto exchanges
Bitcoin trading takes place majorly on crypto exchanges. A cryptocurrency exchange is a platform where customers can trade digital currencies for other assets, such as other crypto or fiat money. To buy bitcoins on a crypto exchange, you have to follow the steps below:
- Locate the cryptocurrency exchange of your choice
- Create a personal account with them
- Ensure the account is verified
- Activate all security features of the account, such as 2FA, phone alert, etc.
- Deposit funds into your account
- Start buying bitcoin and any other altcoins of your choice.
- Open a cryptocurrency wallet.
- Withdraw your bitcoin from exchanges and deposit the same into your wallet.
- Keep your private keys and seed phrase safe from the public.
- Continue to grow your bitcoin investment.
You still don’t know how to trade bitcoin? Don’t worry; there are other efficient ways to buy bitcoins. Below are other methods you can use.
Trade bitcoin on Telegram groups
Trading bitcoin on Telegram groups is becoming relatively fashionable these days. This is more prone to fraud, compared to the use of cryptocurrency exchanges. However, to reduce fraud, some safety measures are put in place by the Admin of the various groups.
To buy bitcoins on Telegram, take the following steps:
- Join the popular Telegram groups where bitcoin or other digital coins are exchanged.
- Check to see that genuine exchanges have been made in the past and are still being made.
- Declare how much bitcoin you wish to buy.
- Get sellers to tell you how much they are selling.
- Agree on a price with a particular seller.
- Get an escrow from the group to hold your money (usually an admin).
- Send money to the escrow (the chosen Admin).
- The seller sends you the quantity of bitcoin requested.
- The Admin confirms you have received the bitcoin in your wallet.
- The Admin releases your money to the seller.
- The transaction is complete.
Always ensure you do proper research on each Telegram group before using them.
Trade bitcoin via CFDs
In case you still wish to know more about how to trade bitcoin, let’s quickly examine the third method. A CFD helps you in trading a contract based on prices in the underlying market. To be able to trade, you have to deposit small initial payments and still gain the exposure of a position that is larger. With this, you have the chance to make a higher profit. However, it can also make you lose big.
There is no direct interaction between you and a crypto exchange when trading bitcoin CFDs. You make use of the buy and sell prices available on this platform. The brokers negotiate those buy prices on your behalf.
Why getting bitcoin via CFDs might be a suitable option
Getting your bitcoin via CFDs has numerous advantages. Some of the reasons to adopt this strategy include:
- CFDs are regulated contracts with regulated brokers.
- If the broker fails to pay you, the financial regulator ensures that you get some compensation.
- You don’t need the actual cost of the bitcoin to buy one. You only pay a small part of the money.
101Investing can be the perfect place for trading bitcoin via CFDs for you
101Investing is a regulated broker, licensed to provide CFD services. In case you would like to start investing in bitcoin or wish to grow your bitcoin investment, we provide you a conducive environment to do so. We pride ourselves as one of the leading CFD service providers in the cryptocurrency market. If you haven't used our platform in the past, we encourage you to give us a try today. Why should you use our platform? The following are some of the reasons why we are rated among the best:
- We are a regulated (licensed) brokerage company.
- All operation on the sites are completely transparent, safe and secure.
- Our transaction fee is one of the lowest in the industry as of this moment.
- Well trained team of professionals available to help and guide trades with using our platform.
- We equally offer you tutorials and guides, making it possible to learn on your own.
How to start trading with us
You may not know everything about how to trade CFDS on bitcoin, but with our support team, you are covered. To start trading on this platform, you need to take just a few steps:
- Create a trading account.
- Pass through digital ID verification.
- Deposit some money into your trading account.
- Our professionals will handle everything from there.
Conclusion
Bitcoin investment is a serious business that every investor who wishes to grow his financial portfolio must know about. Learning how to trade CFDs on bitcoin is not rocket science; you only need the right information regarding the ideal broker, the performance of the cryptocurrency market, and the best time to buy CFDs on bitcoins.
Taking advantage of this platform will help you achieve your dream without stress. Everything you need to become a confident CFD trader is available. Our trained professionals will support you all the way.
