When Bitcoin was launched in 2009, it created a lot of excitement and optimism. Technocrats had predicted that Bitcoin and other cryptocurrencies would replace traditional currencies and traditional banking systems in the near future but that didn’t happen.
Perhaps we should not be too harsh in criticizing those technocrats. Bitcoin offers a lot of advantages over traditional currencies and traditional banking systems in terms of security, accuracy, and ease of use. Therefore, it must have been natural back then to predict that Bitcoin would replace traditional currencies and traditional banking systems.
Bitcoin has also been successfully implemented to a certain degree. That gives yet another reason for us not to be too harsh on those technocrats. The partial success of Bitcoin has sparked a debate on whether it should be considered as a currency or a commodity that people trade.
People debating on the issue have come to the conclusion that Bitcoin can be used as a commodity that can be traded and as a currency with which you can buy things. Of course, very few countries actually accept Bitcoin as a currency. (Use this image for Bitcoin.)
You can buy stuff using Bitcoins only in these countries. They are the USA, Canada, Australia, the European Union (EU), Finland, Russia, and China. If you want to use Bitcoin as a commodity and make a profit out of it, you should learn how to trade in Bitcoins.
What is Bitcoin trading?
In Bitcoin trading, people register themselves on Bitcoin trading websites. They then buy a certain number of Bitcoins at a certain price per Bitcoin. They then sell their Bitcoins on the same Bitcoin trading website when the value of one Bitcoin goes higher than what they bought each Bitcoin for.
In case you want to set up your own cryptocurrency exchange software website, you can visit Bit Exchange and follow the instructions accordingly. It will provide you a ready-made cryptocurrency exchange script that you can use instantly.
This way, Bitcoin traders earn a profit in traditional currencies and treat Bitcoin as a trading commodity. Since Bitcoin is still in the initial stages of implementation, Bitcoin traders say that this is a great time to buy or invest in Bitcoins.
Of course, whether Bitcoins will become a global currency is highly doubtful and Bitcoin investments are subjected to high market risks. There is no guarantee that Bitcoin investments will give you a huge profit in the long run.
Bitcoins may be closed altogether if the global market environment is not favorable in the future. So, kindly invest only that amount in Bitcoins, which you don’t mind losing as of now.
What are the types of Bitcoin traders?
There are two types of Bitcoin traders depending on how long they hold the Bitcoins that they buy. They are Short Term Bitcoin traders and Long Term Bitcoin traders. The Short Term Bitcoin traders hold their Bitcoins only for a day. They see the traders’ sentiments on Bitcoin only for that day and sell their Bitcoins for a small profit or loss.
Long Term Bitcoin traders analyze Bitcoin value trends over many months and sell their Bitcoins when they feel that a Bitcoin’s value is nearing its yearly peak. The majority of the Bitcoin traders in the world are Long Term Bitcoin traders.
How to become a successful Bitcoin trader?
In order to be successful in the Bitcoin trading business, one needs to follow the below-mentioned guidelines. They were given by experienced Bitcoin traders like Aminu.
- Never put all your eggs in one basket. Invest only that amount in Bitcoin which you don’t mind losing. Bitcoin investments are subjected to high market risks. If the global market conditions are not favorable in the future, Bitcoin may be closed altogether.
- When the value of a Bitcoin heads northwards, sell it off. Do not anticipate that it will continue to rise and hold your Bitcoins. If the value of a Bitcoin drops sharply the next day, you’ll have regrets and stomach burns. If the value of a Bitcoin continues to rise on your watch, buy it again the next day and sell it for an even higher price. This way, you can ensure that you will be profitable in the Bitcoin trade.
- Keep a constant watch on traders’ sentiments on Bitcoin every day. This will give you an idea of whether to buy or sell Bitcoins, even in the long run.
- Kindly study the long term trends in Bitcoin’s value. If you are a long term trader in Bitcoin, it will give you a fair idea of when to buy and when to sell your Bitcoins.
- Do not show any emotions when buying or selling Bitcoins. It is your profit and not Bitcoins that are important to you. Bitcoins are only a means to your profit.
- If you incur losses in Bitcoin trading in a day, do not get disheartened and quit Bitcoin trading. Loses are just as natural in Bitcoin trading as profits are. Analyze your mistakes in Bitcoin trading and rectify them the next day to be on the profit track. More than intraday profits or losses, what really matters is your cumulative profit in Bitcoin trading.
List of Bitcoin registration websites
To start trading in Bitcoin, you must register yourself on any one of these Bitcoin trading websites and deposit funds from your regular bank account into your Bitcoin brokerage account.
You can then buy or sell Bitcoins accordingly and transfer funds between your regular bank account and your Bitcoin brokerage account. The top 10 Bitcoin trading websites in the world are:
Bitcoin and other cryptocurrencies definitely offer a lot of advantages over traditional currencies and traditional banking systems. Investing in cryptocurrencies like Bitcoin is definitely profitable as of now but one must exercise caution.
Bitcoin or other cryptocurrency investments are subjected to high market risks. If the global market conditions are not favorable for Bitcoin in the future, Bitcoin could be closed altogether.
So don’t put all your eggs in one basket. Follow the guidelines for investing in Bitcoin as mentioned previously in this article and you’ll definitely be successful in the long run. All the very best!