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