10 important tips before you start trading Bitcoin
Bitcoin real or mirage?
Although the emergence of the cryptocurrency called “Bitcoin” dates back nearly nine years ago, it is still not understood by many; Especially with regard to how to invest in it, and whether investing in Bitcoin is profitable and worth the risk or not. In fact, many people have made huge profits through Bitcoin trading, having mastered the game and understood the risks associated with it. And you may want to be one of these, but we invite you first to know what the cryptocurrency is, and then we will tell you how you can invest in it and make good profits from it, and we will also give you a set of important advice before you start your bitcoin trading career.
What are cryptocurrencies?
Cryptocurrencies, including “Bitcoin”, are virtual currencies that do not have a serial number, and are not subject to the control of any financial institution in the world, but are dealt with only over the Internet without a physical presence. In addition to being an asset that can be traded on exchanges such as stocks and bonds, Bitcoin has become a means of payment for some retail companies and a means of transferring money without the need for a third party.) This of course leads to saving the transfer fees and fees that banks and money transfer companies charge if they are converted by means. It also provides a payment method for business transactions.
And cryptocurrencies are very many, one of the most famous of them is Bitcoin. However, there are other names for these currencies, including: Ethereum, Bitcoin Cash, Ripple, Litecoin and others. The total market capitalization of digital currencies last year exceeded the $ 500 billion ceiling. (2) As usual, the opinions of economists and financial analysts are divided between supporters and opponents; Some believe that cryptocurrency trading is a very promising and encouraging investment opportunity, given the presence of people who were able to make huge fortunes by investing in it. The second party expresses its reservations. Due to the severity of its volatility and vulnerability.
Historically, the emergence of the first digital currency in the world – Bitcoin – dates back to 2009. Although it has been subjected to a lot of criticism in recent years, it has imposed itself strongly and occupied a prominent position in economic forums around the world. Expectations indicate that Bitcoin will significantly affect the reality of the global financial sector. We can consider 2017 to be exceptional by all accounts, and deserves to be a year of recovery for digital currencies. Banks have a strong tendency to introduce these currencies under their umbrella after achieving record success. (3)
After this quick review, in which we hope that we have succeeded in explaining what digital currencies are, we proceed to talk about how to trade and invest in Bitcoin.
What are the advantages of Bitcoin?
The ability to send and receive any amount of money in real time from or to anywhere in the world at any time
Bitcoin payments are currently either made with no or very little fees
Bitcoin transactions do not contain private or sensitive consumer information
What determines the Bitcoin price?
Bitcoin’s price is determined by the law of supply and demand. When the demand increases, the price increases, and vice versa. There is only a limited amount of Bitcoins available for trading, while new Bitcoins are being created at a decreasing and predictable rate, which means that demand has to come later. Hence, it does not require a large amount of money to move the market price up or down, which is why the bitcoin price remains volatile to a large extent.
What is the risk of dealing with Bitcoin?
Bitcoin has been a major factor in the two global cyber attacks, with the first WannaCry ransomware and the second Petya ransomware. Hackers attacking hundreds of thousands of computers in the world have asked to pay a ransom in Bitcoin, in order to return pirated files to their owners, and to reopen devices that have been paralyzed by the virus, on a global scale.
As the ambiguity around this virtual currency is a source of great concern to many countries, for fear of using it in illegal operations, such as facilitating the transfer of funds to terrorists, or facilitating money laundering operations, and transferring them between countries under the pretext of investing in such type of tools that have not After receiving an official acceptance with the regulatory authorities in the Gulf and Arab countries.
How to start trading Bitcoin?
Trading digital currencies represents a great investment opportunity and a high risk. And as we have already mentioned, many people around the world have been able to make huge profits through this. In order to start trading digital currencies, there are two steps:
The first step:
Get Bitcoin. You have to buy Bitcoins through their brokers; You can buy from them and pay them in dollars or euros. It should be noted that you do not have to purchase a full Bitcoin. You can buy parts of it, one of which is called “satoshi.” And when you have Bitcoin or parts of it, you can start trading digital currencies in general.
The second step:
You must get the bitcoin from the broker or someone else when they send it to your Bitcoin wallet address, or directly to your Bitcoin address in the trading platform through which you will trade the various digital currencies.
Thus, you will be introduced to the world of digital currencies and their danger. However, we offer you ten tips that you should be aware of before you start your Bitcoin trading career.
10 important tips before you start trading Bitcoin
Invest according to your financial ability; Do not borrow large sums to be traded; Because it may become difficult to pay later.
Set specific trading targets, track specific currencies and gather sufficient information about them; And about their buying and selling prices in the short and long term.
Don’t be in a hurry to make your decisions about buying and selling.
Do not trust the news that is spread across platforms and communication sites about these currencies, especially if their source is not reliable.
Keep away from guesswork or luck; A successful investor makes his decisions based on information, not astrology or speculation.
In the end, the investor is a human who makes mistakes and makes mistakes, but you have to learn from your previous mistakes and not fall into them again.
Learn to collect and analyze data, and be constantly informed of prices and news from the right sources.
Believe in and love this business, and don’t approach it in terms of quick wins; Rather, it looked to a promising future.
Self-learning and from others and their experiences.
Do not make cryptocurrency trading your primary concern that consumes your time and energy, and do not let you have free time to review your trading strategy.
In the end, we showed you a detailed breakdown of Bitcoin and important tips before starting to trade Bitcoin, we hope that you have benefited from this article.
The question remains, is Bitcoin real or a mirage?
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