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How to Trade Bitcoin

Amala Pillai
Amala Pillai
July 17th, 2023
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If you’re looking to start trading cryptocurrencies, including Bitcoin, you’re on the right path as this page will hopefully teach you everything you need to know to get you on your way.

For those of you that are already familiar with cryptocurrency trading, you can check out our list of the best Bitcoin trading brokers, while others can continue reading our guide to learn more.

Best Bitcoin Trading Brokers

Here you can find a table of the best Bitcoin brokers so you can get started with trading right away:

Sort by
Pepperstone9.0Visitpepperstone.comEmail, Live Chat, Phone, WhatsApp20102FA, Biometrics, PIN2FA, Biometrics, PIN

Between 74-89 % of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Plus500 CFD Broker9.8Visitplus500.comLive Chat, Email, WhatsApp20082FA, Biometrics2FA, Biometrics

82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Eightcap8.8Visiteightcap.comLive Chat, Email, Phone20092FA, PIN2FA, PIN
Webull8.3Visitwebull.comEmail, Phone20172FA, Biometrics, PIN2FA, Biometrics, PIN
Coinbase8.4Visitcoinbase.comEmail20122FA, PIN, Biometrics2FA, PIN, Biometrics
Changelly7.4VisitChangelly.comEmail, Live Chat20152FA, Biometrics2FA, Biometrics
Trading 2128.4Visittrading212.comEmail, Live Chat20132FA, Biometrics, PIN2FA, Biometrics, PIN

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

What Do I Need to Trade Cryptocurrency?

To get started with trading cryptocurrency, you will need some basic knowledge about how online trading works and access to a platform that offers cryptocurrency trading services such as an exchange or brokerage.

Where Do You Trade Cryptocurrencies?

Cryptocurrencies are traded on different online platforms. These include exchanges and CFD Brokers. Let’s go over some of their main differences.

Exchange

  • A cryptocurrency exchange is a platform that allows its customers to trade cryptocurrencies for other assets, such as fiat money or other digital currencies.

CFD Broker

  • A CFD broker allows its clients to trade cryptocurrencies through derivative instruments. Contracts for Difference (CFDs) enable users to speculate on the price movement of a specific digital currency without needing to own the underlying asset.

Should I Trade Cryptocurrencies?

The answer to this question is up to you and your specific goals. We would suggest that you do your research, educate yourself, and test things out first before you make a full decision. Use our site to help you make this decision, as we have all of the information you require. Remember to only invest money you can afford to lose.

What Is the Best Way to Trade Bitcoin for a Beginner?

The best way for you to trade Bitcoin as a beginner is to use a CFD platform demo account.

This is due to the fact that:

  • You are not required to store cryptocurrencies

  • You get a higher level of flexibility

  • Most brokerages are fully regulated and, as such, have a higher level of security.

Once you become more familiarised with these platforms, you can slowly make your way towards using a cryptocurrency exchange.

How to Trade Bitcoin Using a Broker

To trade Bitcoin through a broker, you will need to open an account with a brokerage. You should consider the security features, fees, and other things before making your final choice. However, here are the three steps you can take in order to start trading today.

Step 1: Open an Account With your Broker
Step 2: Deposit Funds Into Your Account
Step 3: Plan Your Trading Strategy
Step 4: Place Your First Trade

How to Trade Bitcoin Using an Exchange

There are many cryptocurrency exchanges out there, with the biggest ones letting you trade a wide range of cryptocurrency tokens. Here’s what you need to do to get started:

Step 1: Decide Which Exchange You Want to Use
Step 2: Set up an Account
Step 3: Select Which cryptos You Want to Hold and Trade
Step 4: Place Your Trade
Step 5: Receive Your Coins
Sort by
Pepperstone9.0Visitpepperstone.comEmail, Live Chat, Phone, WhatsApp20102FA, Biometrics, PIN2FA, Biometrics, PIN

Between 74-89 % of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Plus500 CFD Broker9.8Visitplus500.comLive Chat, Email, WhatsApp20082FA, Biometrics2FA, Biometrics

82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Eightcap8.8Visiteightcap.comLive Chat, Email, Phone20092FA, PIN2FA, PIN
Webull8.3Visitwebull.comEmail, Phone20172FA, Biometrics, PIN2FA, Biometrics, PIN
Coinbase8.4Visitcoinbase.comEmail20122FA, PIN, Biometrics2FA, PIN, Biometrics

Changelly7.4VisitChangelly.comEmail, Live Chat20152FA, Biometrics2FA, Biometrics
Trading 2128.4Visittrading212.comEmail, Live Chat20132FA, Biometrics, PIN2FA, Biometrics, PIN

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

What Are the Alternative Ways to Get Bitcoin?

There are alternative methods through which you can buy Bitcoin. You have cryptocurrency brokerages, peer-to-peer (P2P) marketplaces, decentralized exchanges, ATMs, and so on. It’s worth trying each one out to see which one you prefer.

Final Thoughts on Trading Bitcoin

Trading Bitcoin requires a lot of research to stay consistently profitable, and hopefully, through this article, you now have a higher level of understanding when it comes to how all of it works. There are numerous brokerages, exchanges as well as alternative methods through which you can trade the token, and given the fact that it is the number one cryptocurrency token in terms of market capitalization, it is safe to say that you will always find somewhere to buy it or trade it. It is the go-to currency for newcomer trades and is highly recommended due to its long history of remaining at the number one spot.

FAQs

Can I Deposit Money Using PayPal to Trade Bitcoin?
Can I Deposit Money Using a Credit or Debit Card to Trade Bitcoin?
Can I Deposit Money Using Bank Wire Transfer to Trade Bitcoin?
Will I Lose Money Trading Bitcoin?
Is Bitcoin Safe to Trade?
What Are the Trading Hours of the Bitcoin Market?
Can I Trade Bitcoin on My Mobile Phone?
Is It Easy to Withdraw My Profits?

Related Bitcoin Trading Guides

Contributors

Amala Pillai
Senior Content Editor
Amala is custom content and news editor based in London. She is a former financial journalist based in Singapore with 7 years of experience covering a range of business and financial topics. Now she focuses on crypto and macro-economics. She has also covered feature profiles, tech, business politics and ESG— she was the Environment Editor for the Solutions Newspaper, 2016 and worked in an editorial capacity at both News corp (Dow Jones) and JBN. She also has experience as a content creator, strategist and brand editor for various financial institutions and banks.